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The tipping point: Amazon’s 2025 fee stack
On paper, Amazon’s reach looks unbeatable. But every order carries layers of cost.
Examining the latest Amazon report for one of our clients
- FBA fulfilment: 15%. It starts at $5 – $8 for smaller parcels and increases for larger products.
- Storage & inventory placement fees: surcharges if inventory days of cover fall below thresholds.
- Transaction fees: around 17%.
- And of course, the Ads fees, which in this case took around 10%. OK, we can put that on the side for now.
And other fees like returns, inbound stock, adjustments, etc. Or Buy with Prime fees, for off-Amazon orders, there’s now a 3% service fee plus per-unit fulfilment.
Add this up, and a $50 order can easily rack up $20 in fees that end up going to Amazon. Sellers are asking: if I’m losing 40-60% of order value before even paying for product and marketing, how do I grow?
Where DTC wins the math
By comparison, a DTC setup looks leaner:
- Payments: Shopify Payments averages ~2.9% + $0.30 per order. And it just goes down as you scale.
- 3PL fulfilment: pick, pack, and label can run $3 – $4 depending on volume.
That’s ~$5 per $50 order, or less than half the effective Amazon cost. And unlike Amazon, DTC costs scale down as volume grows and you negotiate better 3PL or payment rates.
To put in perspective
Source: byteout.com
Real-world consequence: a single review, half the sales gone
One of our Amazon-only clients saw just how fragile the platform can be. A single negative review on a best-selling SKU triggered a 50% sales drop overnight. No changes to ads, no supply issues. It was just one review that shifted the algorithm.
That moment convinced the brand to diversify. Within months, we built their DTC channel on Shopify, layered in inserts that captured customer emails, and launched a subscription offer for their consumable products. Even as Amazon sales recovered, DTC became the safety net that kept overall revenue steady.
Source: byteout.com
Practical playbook: moving margin to DTC
If you’re an Amazon seller starting your DTC channel, here are six moves you can apply now:
- Inserts that add value: Don’t just stuff a coupon inside, but use QR codes to link to guides, setup videos, or checklists. Capture emails in a value-driven way.
- Channel-safe promos: Stay compliant on Amazon while offering early access, bundles, or exclusive content on DTC.
- Bundles & subscriptions: Create bundles Amazon doesn’t allow and push refills into subscription.
- Remarketing map: Tag “Amazon-found” customers and retarget with education or accessories on your DTC site.
- Use Buy with Prime selectively: Keep it for SKUs where the math beats your 3PL. Turn it off where DTC nets more.
- Measure LTV by channel: Track 60-day lifetime value. If DTC customers are contributing more profit, push ad spend that way.
Key insight for 2025
Amazon will keep evolving its fees and policies. But the bigger shift is in seller behaviour: using Amazon for discovery, and DTC for profitability and brand control. In 2025, the sellers who thrive are those who don’t put all their eggs in the Amazon basket.
If you are an Amazon seller looking into the basics of how to open a Shopify store, there is a free Amazon to DTC course available to get you started.
