When you're selling on Amazon in the UK, understanding fulfillment costs can make the difference between healthy profits and razor-thin margins. 

I've spent years helping sellers navigate these waters, and one fee that consistently causes confusion is the Amazon pick and pack fee.

Let me walk you through everything you need to know about these fees in the UK marketplace, whether you're using Amazon's warehouses or handling fulfillment yourself.

What Exactly Is an Amazon Pick and Pack Fee?

The Amazon pick and pack fee – sometimes called the FBA fulfillment fee – is what Amazon charges to physically handle your orders. 

When a customer buys your product, someone at an Amazon warehouse has to find your item on the shelf (pick), put it in a box with appropriate packaging (pack), and send it on its way to the customer.

This fee covers all the labor, packaging materials, and shipping costs involved in getting your product from the warehouse to your customer's doorstep. 

But here's a crucial point many new sellers miss: this fee only applies to FBA orders (Fulfillment by Amazon). 

If you're handling your own shipping (FBM), Amazon doesn't charge this specific fee.

The pick and pack fee varies significantly based on size and weight. 

A small, lightweight item might only incur around a £1.50 FBA fulfillment fee per unit in the UK, while a bulky, heavy product could set you back £10 or more per unit. 

And since it's charged per unit sold, if someone orders three of your products, you'll pay this fee three times (though Amazon does offer multi-unit discounts).

Why should you care about this fee? 

Because it can eat into your profits in a big way. In fact, pick and pack fees often account for over 20% of your total selling fees on Amazon UK. 

Getting a handle on these costs is essential for pricing your products correctly and deciding which fulfillment method makes the most sense for your business.

FBA Pick and Pack Fees in the UK: A Closer Look

When you use Fulfillment by Amazon (FBA), you're essentially renting space in Amazon's logistics network. 

You send your inventory to their warehouses, and they handle everything else – from storage to picking, packing, shipping, and even basic customer service.

The core of what you're paying for is the pick and pack fee (also called the fulfillment fee). Here's what you need to know about FBA pick and pack fees in the UK:

Fee Structure and What It Covers

The FBA pick and pack fee is all-inclusive for fulfillment. This means it covers:

• Picking your item from the warehouse shelf

• Packing it securely for shipping

• Delivery to the customer with tracking

• Basic customer service and returns processing

You don't pay extra for packaging materials or postage – it's all bundled into this one fee. 

This is why many sellers find FBA convenient; you're paying a predictable amount per unit rather than juggling separate shipping and packaging costs.

What the fee doesn't include: storage fees (charged monthly based on how much space your inventory takes up) and referral fees (the percentage Amazon takes from each sale). 

VAT is also added on top for UK sellers where applicable.

Size and Weight Tiers

Amazon UK uses a tiered pricing structure based on size and weight. Here's a general breakdown:

• Standard Envelope (small item under ~60g): Around £1.49 per unit

• Large Envelope or small parcel (a few hundred grams): Roughly £2.50–£3.50 per unit

• Small/Standard Parcel (medium-sized item ~1 kg): Approximately £4–£5 per unit

• Large/Oversize items: £10+ per unit, with very large items reaching £15+

The exact fee depends on your product's shipping weight (product weight plus packaging) and dimensions, along with whether it falls into the standard or oversize category.

To put this in concrete terms:

• A paperback book (~200g) might incur an FBA fee of around £2.60

• A pair of headphones (~350g) could cost around £3.30 via FBA

• A small kitchen appliance (2 kg) might have a fee of £5–£6

Amazon provides detailed fee tables on their UK seller site – always check the latest rates as these typically get updated yearly.

Special Programs and Discounts

There are a few ways to reduce your FBA pick and pack fees in the UK:

Low-Price FBA Rates: For products priced £10 or less, Amazon UK offers discounted fulfillment fees under their Low-Price FBA program. 

This replaced the old "Small and Light" program and automatically applies to eligible products. 

The discount isn't massive – perhaps 10-15% off the standard fee – but for low-margin items, this can make a difference.

Multi-Unit Order Discount: When a customer buys multiple units of your product in a single order, Amazon gives you a discount on the per-unit fulfillment fees – averaging around 25% off for multi-unit orders. 

This is a hidden benefit many sellers don't factor into their calculations.

For example, if the pick and pack fee for one unit is £2, two units in the same order might cost £3.50 instead of £4.00, saving you £0.50. 

This makes bundle offers more profitable from a fulfillment perspective.

2025 Fee Updates

The good news for UK sellers is that as of early 2025, Amazon has actually held steady on many FBA fees, announcing they would not increase (and in some cases would lower) FBA fulfillment fees for standard parcels and oversize tiers. 

They've also simplified the oversize categories, making fee calculations more straightforward.

This stability in fees is relatively rare and provides a good opportunity for sellers to optimize their strategies without constantly adjusting for rising costs.

When You Fulfill Orders Yourself (FBM)

Not every seller uses FBA for all their products. 

Fulfilled by Merchant (FBM) means you list on Amazon but handle storage, packing, and shipping yourself. 

The key point here is that Amazon does not charge a pick and pack fee for FBM orders – that fee is specific to FBA.

While this might sound like an automatic cost savings, remember that you'll be taking on all the fulfillment work and expenses yourself. Here's what to consider for FBM in the UK:

The Real Costs of Self-Fulfillment

With FBM, you avoid FBA fees entirely, but you need to account for your own fulfillment costs:

• Packaging materials: Boxes, bubble wrap, tape, labels, etc.

• Labor: Your time or staff time spent picking and packing

• Shipping: Postage costs through Royal Mail, Evri, DPD, or other carriers

Many sellers underestimate these costs. 

One Amazon seller on Reddit noted that just the box and basic packing supplies cost them about £1 per order – and that's before adding postage costs which could be several pounds depending on the item.

FBM only saves money if your total self-fulfillment cost per unit is lower than Amazon's equivalent FBA fee. 

For some products (especially lightweight ones that qualify for Royal Mail Large Letter rates), FBM can be significantly cheaper. 

For others, especially heavy or awkward items that are expensive to ship individually, FBA's economies of scale might actually be more cost-effective.

Shipping Fees and Customer Expectations

When fulfilling orders yourself, you'll need to decide whether to charge customers for shipping or offer free shipping and build that cost into your product price. 

Keep in mind that Amazon's marketplace is extremely competitive on shipping – Prime members expect free, fast delivery.

If your FBM listing doesn't offer Prime delivery, you might need to keep shipping costs low to stay competitive. 

This could mean absorbing a £2–£5 shipping cost on each order – a cost that would have been included in the FBA fee.

The Hidden £0.75 Fee That Might Be Costing You

Here's a cost many FBM sellers overlook: If you're not on Amazon's Professional selling plan, you'll pay a £0.75 per-item fee on every sale. 

For high-volume sellers, this quickly adds up.

Most serious sellers opt for the Professional plan (£25/month) once they sell more than 35 items monthly, specifically to avoid this per-item surcharge. 

If you're doing any significant volume with FBM, make sure you have a Professional account to eliminate this fee.

Scaling Challenges with FBM

One major consideration for FBM sellers is scalability. Fulfilling orders yourself works fine at low volumes – 5 orders a day might be manageable from your home or small office. 

But what happens when you're getting 50 orders daily?

FBM can quickly become labor-intensive as you grow. 

You'll need to invest in warehouse space, possibly hire staff, and develop efficient processes. 

Amazon FBA, on the other hand, scales effortlessly – whether you get 5 or 500 orders, they handle the logistics.

Many sellers find that their time is better spent on growing their business rather than packing boxes. 

Consider the opportunity cost of your time when deciding between FBM and FBA.

Seller-Fulfilled Prime: The Best of Both Worlds?

For advanced sellers, there's a hybrid option called Seller Fulfilled Prime (SFP). 

This allows you to fulfill orders from your own facility while still displaying the Prime badge on your listings.

To qualify, you need to meet Amazon's strict Prime shipping standards – very fast dispatch, delivery promise times, weekend pickups, and low cancellation rates. 

If you qualify, your FBM orders to Prime customers won't incur FBA fees, but you'll likely spend more on premium shipping services to meet the Prime promise.

SFP is generally only viable if you have an efficient warehouse operation and can negotiate excellent rates with carriers for 1-2 day delivery. 

Currently, Amazon UK's SFP program has limited enrollment, making it challenging for new sellers to access.

Third-Party Logistics (3PL): The Middle Ground

A third-party logistics provider (3PL) is an independent company that handles warehousing and fulfillment for you. 

Many UK sellers use 3PLs to fulfill orders from Amazon (via FBM) and other sales channels with unified inventory.

How 3PL Fees Compare to Amazon's Pick and Pack

3PLs charge their own fees for fulfillment, typically consisting of:

• A pick/pack fee per order (often £1.50-£3.00)

• An additional fee per extra item in the order (around £0.20-£0.50)

• Shipping costs (usually billed separately using the 3PL's carrier rates)

• Storage fees (monthly charges based on space used)

For example, a 3PL might charge £2.00 for the first item and £0.40 for each additional item in the shipment. ShipHype's pricing page shows similar rates – around $2.50 (£2) for the first item and $0.50 (£0.40) for each additional pick.

So if a customer orders one unit, you might pay ~£2 for handling, plus perhaps £2–£3 for postage, totaling £4-£5. 

This can be higher or lower than FBA's fee depending on the specific item.

One advantage of 3PLs is that they're often more cost-effective for multiple-item orders. 

For instance, an order of 3 units might cost £2 + (£0.40 × 2) = £2.80 in handling fees, while Amazon FBA might charge closer to 3× the single fee minus a small discount (perhaps £7.50).

When 3PL Makes Sense for UK Sellers

A 3PL can be an excellent option in several scenarios:

1. Multi-channel selling: If you sell on Amazon, eBay, and your own website, a 3PL can keep all your inventory in one place, fulfilling orders from any platform. FBA primarily serves Amazon orders (Amazon's Multi-Channel Fulfillment exists but at higher rates).

2. Oversized or heavy products: If your items incur very high FBA fees due to size/weight, a specialized 3PL might offer lower rates or cheaper shipping options.

3. Branding control: Want custom packaging or marketing inserts? Amazon doesn't allow this with FBA, but most 3PLs will accommodate your branding requirements.

4. Volume discounts: With large order volumes, you can often negotiate better rates with a 3PL, whereas Amazon's fees are non-negotiable.

5. Inventory flexibility: If Amazon has imposed inventory limits on your FBA account (common during Q4 or for new sellers), a 3PL gives you overflow capacity.

Drawbacks of 3PL vs FBA

The trade-offs are worth considering:

• No automatic Prime badge (unless you qualify for SFP)

• Potentially lower Buy Box win rates (Amazon's algorithm favors FBA offers)

• Added complexity of managing the 3PL relationship and integration

• Separate billing and accounting to manage

Which Fulfillment Method Should You Choose?

Now that we've covered all three methods, let's compare them directly:

Fulfillment Cost Per Unit

• FBA: Predictable per-unit fee based on size/weight (£2–£5 for many standard items), which includes shipping. Multi-unit orders get automatic discounts.

• FBM: No Amazon fulfillment fee, but variable self-fulfillment costs. Could be lower or higher than FBA depending on how efficiently you can ship. Remember the £0.75/item fee if you're not on a Professional plan.

• 3PL: You pay the 3PL's handling fees (£1.50–£3.00 per order + £0.20-£0.50 per additional item) plus shipping costs. Often cost-effective for multi-item orders or bulky goods.

Shipping Speed & Prime Eligibility

• FBA: Automatically Prime eligible. Amazon handles fast shipping (usually Next-Day in the UK) and customer service. This typically means higher conversion rates.
  FBM: Not Prime eligible by default. You control shipping speed but may see lower conversion rates without the Prime badge. You also manage customer service.

• 3PL: Not Prime eligible (unless using SFP). Similar to FBM in terms of customer perception, though a good 3PL can still provide quick shipping.

Control & Flexibility

• FBA: Minimal control – Amazon decides packaging and shipping methods. You can't add marketing inserts or use custom packaging.

• FBM: Maximum control over the customer experience – you choose packaging, carriers, and can include branded materials.

• 3PL: Medium control – most 3PLs will accommodate reasonable requests for custom packaging or inserts.

Scalability & Effort

• FBA: Highly scalable with minimal ongoing effort. Your work is front-loaded (prepping inventory for FBA), and Amazon handles the daily fulfillment.
  FBM: Your effort scales with order volume – more orders mean more work for you or your team. Requires investment in infrastructure as you grow.

• 3PL: Scalable (with proportional cost increases) without requiring your direct labor. You'll need to manage inventory levels and monitor performance.

7 Ways to Reduce Your Pick and Pack Costs

No matter which fulfillment method you choose, these strategies can help you minimize your pick and pack costs:

1. Optimize product dimensions: Even small reductions in size or weight can drop your item into a lower fee bracket. Compact packaging is key since Amazon charges based on the greater of actual or dimensional weight.

2. Bundle products strategically: If selling low-cost items, consider creating multi-packs or bundles. This way, you pay one pick/pack fee for multiple units. Also, make sure eligible products under £10 are enrolled in Amazon's Low-Price FBA rates program.

3. Use a Professional seller account: The £25/month fee pays for itself if you sell more than 34 items monthly by eliminating the £0.75 per-item fee on FBM sales.

4. Use Amazon's FBA calculator: Before choosing a fulfillment method, run the numbers through Amazon's revenue calculator to compare options for each product.

5. Audit your Amazon fees regularly: Sometimes Amazon miscategorizes your products, leading to higher fees. Review your FBA fee previews and invoices – if you spot errors, open a case with Seller Support for reimbursement.

6. Improve warehouse efficiency: If using FBM or a 3PL, automate where possible with pick lists and batch label printing. Negotiate carrier rates for shipping discounts.

7. Optimize inventory levels: Avoid long-term storage fees at FBA by sending in smaller, more frequent batches. Consider using a 3PL or prep center for overflow stock.

Making the Right Choice for Your Amazon UK Business

Most successful Amazon UK sellers don't limit themselves to just one fulfillment method – they take a hybrid approach. Common strategies include:

• Using FBA for best-selling items where Prime eligibility boosts conversion

• Fulfilling slow-moving or very low-margin items via FBM to avoid storage fees

• Leveraging a 3PL for multi-channel orders and overflow inventory

The key is to analyze each product in your catalog individually.

A lightweight, high-margin product might be perfect for FBA, while a bulky, low-margin item might make more sense to fulfill yourself or via a 3PL.

Remember to factor in the value of your time as well. FBA's convenience allows you to focus on growing your business rather than packing boxes – sometimes that's worth paying a slightly higher fee.

Need Help Optimizing Your Amazon Fees?

If you're struggling to make sense of Amazon's fee structure or want to optimize your fulfillment strategy, I can help. 

With years of experience helping UK Amazon sellers maximize their profits, I've seen how small adjustments to fulfillment strategy can lead to significant savings.

Contact me for a personalized consultation to reduce your costs and improve your ROI on Amazon.

Frequently Asked Questions

Do FBM sellers pay Amazon pick and pack fees?

No – if you're fulfilling orders yourself (FBM), Amazon does not charge a pick and pack fee. 

This fee only applies to FBA orders that Amazon fulfills. 

FBM sellers only pay the standard referral fee (percentage of the sale price) and, for those on the Individual plan, the £0.75 per-item fee.

How can I check if my product qualifies for Low-Price FBA rates?

Products priced at £10 or less (including VAT) automatically qualify for Low-Price FBA rates if they meet the size and sales velocity requirements. 

You can check eligibility in your Seller Central account under the "Inventory" tab.

Can I use both FBA and FBM for the same product?

Yes, many sellers create separate listings or use inventory settings to fulfill the same product through different methods. 

This can be useful for managing inventory during peak seasons or for testing which fulfillment method generates better profits.

How often do Amazon's pick and pack fees change?

Amazon typically updates its fee structure once a year, usually in February or March. 

Always check Amazon Seller Central announcements for the latest information about fee changes.

What happens if Amazon damages my inventory during picking and packing?

If Amazon damages your inventory during the fulfillment process, you can file a claim for reimbursement. 

Navigate to "Reports > Fulfillment > Inventory Adjustments" in Seller Central to identify damaged inventory and request reimbursement.