Amazon FBA is one of the most powerful tools for sellers in Canada. It allows sellers to store products in Amazon’s warehouses, while the company takes care of packaging, shipping, and customer service. This makes it easier to scale without worrying about logistics. But FBA comes with several costs. Amazon Canada FBA fees can quickly eat into profits if you don’t track them carefully. From fulfillment charges to storage, aged inventory, and returns, every fee has a direct impact on your margins. In this complete guide, we explain all Amazon Canada FBA fees for 2025, show how they work, and share strategies to reduce them.
1. What Are Amazon Canada FBA Fees?
Amazon Canada FBA fees are the costs sellers pay to use Amazon’s fulfillment network. These fees cover services like picking, packing, shipping, storage, and handling returns. The system gives sellers access to millions of Prime customers and fast delivery, but it isn’t free.
The main fee categories include:
- Fulfillment fees
- Storage fees
- Aged inventory or long-term storage fees
- Removal fees
- Unplanned service fees
- Returns processing fees
- Low-price fulfillment fees
- Manual processing fees
Each fee affects profitability differently. Understanding them ensures you set the right prices and manage stock correctly.
2. Fulfillment Fees in Amazon Canada
Fulfillment fees are charged per unit sold. These cover the cost of Amazon picking, packing, and shipping the product. The exact amount depends on weight and size.
- Standard-size products: Start at CAD 5.92 per unit.
- Oversize products: Can reach CAD 82 or more.
- Peak season: From October to January, fulfillment fees are higher.
- Low-price items: Products priced under CAD 14 may qualify for reduced fees.
Example:
A standard-size item weighing 300 g may cost around CAD 6.73 to ship during regular months but slightly higher during peak times.
Why it matters:
These costs directly affect your selling price. Miscalculating them can reduce or even eliminate your profit margins.
3. Amazon Canada Storage Fees
Storage fees are monthly charges for keeping your products in Amazon’s warehouses. These are measured per cubic meter.
- January to September: Lower storage costs.
- October to December: Higher rates due to holiday demand.
Example:
- Standard-size: CAD 36 per m³ (Jan–Sep), CAD 64 per m³ (Oct–Dec).
- Oversize: CAD 25 per m³ (Jan–Sep), CAD 41 per m³ (Oct–Dec).
Impact:
Sellers who overstock or fail to manage inventory efficiently face high storage costs, especially during peak seasons.
4. Aged Inventory / Long-Term Storage Fees
Amazon adds extra charges for inventory that sits too long. These are called aged inventory or long-term storage fees. They are assessed monthly, based on how many days your inventory has been in storage.
- 181–210 days: CAD 24 per m³
- 211–240 days: CAD 48 per m³
- 241–270 days: CAD 72 per m³
- 271–300 days: CAD 156 per m³
- 301–330 days: CAD 172 per m³
- 331–365 days: CAD 189 per m³
- 365+ days: CAD 330 per m³ or CAD 0.15 per unit (whichever is greater)
Why it matters:
This fee encourages sellers to move inventory quickly. If products don’t sell within six months, charges increase sharply.
5. Amazon Canada Removal Fees
Sellers can request Amazon to remove or dispose of unsold products. Removal fees are charged per unit and vary by size and weight.
Examples:
- Standard size up to 200 g: CAD 0.36
- Regular size ranging from 200 g to 1 kg: CAD 0.82 – 1.62
- Large size up to 1 kg: CAD 0.93 – 1.69
- Large size between 1 and 5 kg: CAD 2.83 – 5.02
Why Amazon charges this:
It prevents warehouses from filling up with unsellable inventory.
6. Unplanned Service Fees
If sellers fail to prepare shipments correctly, Amazon fixes the issue and charges unplanned service fees.
Common charges include:
- Bagging: CAD 1.02
- Bubble Wrap: CAD 1.94
- Labeling: CAD 0.39
- Opaque Bagging: CAD 0.91
- Taping: CAD 0.32
Tip: Always follow FBA prep requirements to avoid these unnecessary costs.
7. Returns Processing Fee
Amazon charges a returns processing fee for categories like clothing, shoes, and accessories. These fees cover inspection, repackaging, and preparation for resale.
Examples:
- Envelope with a weight limit of 500 g: CAD 3.75 – 4.00
- Standard-sized parcel up to 1.5 kg: CAD 4.08 – 5.92
- Oversize package up to 32 kg: Starting at CAD 6.94
- Large oversize: From CAD 24.47
Why it matters:
High return rates can cut into profits if not managed well.
8. Low-Price Fulfillment Fees
To support sellers offering products under CAD 14, Amazon provides reduced fulfillment fees.
Examples:
- Envelope under 500 g: CAD 3.66 – 4.82
- Regular package weighing up to 1.5 kg: CAD 5.12 – 8.80
- Oversize up to 32 kg: From CAD 14.63
Advantage:
This helps sellers keep prices competitive while maintaining Prime benefits.
9. Manual Processing Fee
If you don’t provide box content details, Amazon manually processes shipments and charges a fee.
- Current fee: CAD 0.11 per unit.
Impact:
Delays product availability and adds unnecessary cost. Always provide box content information to avoid it.
10. Hidden Costs Sellers Overlook
While main fees are well known, sellers often miss additional costs.
- Referral fees: A percentage of every sale.
- Peak surcharges: Seasonal increases.
- Currency exchange impact: If sourcing outside Canada.
These can reduce margins further if ignored.
11. Strategies to Reduce Amazon Canada FBA Fees
Smart sellers manage fees carefully. Here are strategies to save:
- Optimize inventory: Avoid overstocking to reduce storage and aged inventory fees.
- Use removal orders wisely: Remove unsellable products before fees increase.
- Price strategically: Factor in all costs before setting prices.
- Prep shipments correctly: Follow Amazon guidelines to avoid unplanned service fees.
- Track fee changes: Amazon updates fees regularly. Stay informed to adjust quickly.
- Use low-price fulfillment: For cheaper items under CAD 14, this lowers fulfillment costs.
- Improve sell-through rate: Faster sales reduce long-term storage risk.
12. Is FBA Worth It for Canadian Sellers?
FBA offers big advantages:
- Access to Prime customers.
- Faster delivery.
- Less hassle for sellers.
But it also has costs:
- High fulfillment fees.
- Seasonal storage surcharges.
- Hidden charges if not careful.
Verdict: FBA is worth it if you manage fees smartly and maintain a healthy profit margin. For some low-volume sellers, FBM (Fulfillment by Merchant) may be cheaper.
FAQs About Amazon Canada FBA Fees
Because of logistics, labor, and warehouse costs in Canada.
Yes, by selling through stock quickly or using removal orders before charges apply.
FBA is better for scaling, but FBM can be cheaper if you have limited stock.
Yes, Prime access boosts sales, often making the fees worth it.
Usually once a year, but sometimes mid-year adjustments happen.
Referral fees are a percentage of the selling price charged on every sale, while FBA fees are for fulfillment services like storage, packing, and shipping. Both apply together.
Yes. FBA fees are considered business expenses and can usually be deducted when filing taxes. Always keep detailed records.
Amazon reimburses sellers for lost or damaged inventory, usually at the item’s average selling price minus fees.
Yes. Oversized items have higher handling and storage fees because they take up more space and require special shipping.
Yes. Many sellers use a hybrid model. They send fast-moving or Prime-eligible products to FBA and handle slower-moving or heavy items with FBM.
Conclusion
Amazon Canada FBA makes selling easier by handling logistics, but it comes at a cost. Fulfillment, storage, aged inventory, removal, and other fees can eat into your margins if not tracked carefully. By understanding these costs and applying strategies like better inventory management, correct shipment preparation, and using low-price fulfillment, sellers can stay profitable. For most Canadian sellers, FBA is still worth it, provided they manage fees wisely. Staying updated and adapting quickly is the key to success.