Amazon Rolls Out New “Transparent” Fee Explainer Tool
If you've ever been blindsided by a vague or unexpected Amazon fee, you're not alone. In response to growing seller frustration over opaque charges, Amazon recently rolled out a new tool called the “Fee Explainer.” It’s designed to give sellers more clarity around how and why certain fees are applied—and it’s about time.
Here’s a closer look at how this tool works, what fees it covers, and where it still falls short.
What Is the Fee Explainer?
Fee Explainer is Amazon’s attempt to demystify its complex fee structure. Instead of just showing the charge amount, the tool now includes a three-part breakdown for each fee:
- Fee Definition: A clear explanation of what the fee is and why it applies.
- Fee Attributes: The product or service characteristics that influence the charge.
- Fee Calculation: A step-by-step breakdown showing how the final amount was computed, often with an example.
However, unfortunately the fee explainer appears to be more of a token gesture to appease critics who say Amazon disguises fees, rather than a legitimately useful tool to help sellers understand fees.
Where to Access Fee Explainers
Sellers can find these breakdowns in two key areas:
- Preview Tools: Use the inline revenue calculator or revenue calculator in the Inventory section to see potential fees before listing.
- Review Tools: In the Payments dashboard, click on a specific transaction under Transaction View and then on the fee amount to see its explanation.
For a deeper dive, Amazon’s official guide walks sellers through how to navigate these tools. The EcomCrew Amazon Seller Fees guide also offers a broader look at how to handle fees strategically.
What Fees Are Covered?
Initially, the Fee Explainer supports a list of common charges, including:
- Subscription
- Referral
- Variable and fixed closing fees
- Refund administration
- Customer return and high-return rate processing
- Removal and disposal fees
Amazon says more fee types will be added in the coming months. Right now, the biggest inclusion is refund and removal fees.
Still Room for Improvement
The fee explainer, as mentioned, still excludes many fees, such as placement fees, storage fees (and the multiple different types of storage surcharges) and many others.
Some sellers also remain skeptical. One seller highlighted a case where four different charges labeled simply “Other chargeback” lacked any meaningful differentiation or explanation. For those hoping the Fee Explainer would provide crystal-clear answers every time, there’s still some work to be done.
Final Thoughts
Understanding Amazon fees has always been less than transparent.
The new fee explainers are a small step in the right direction but are also largely incomplete of many fees and are also difficult to access.
