Is Selling Candles On Amazon Fba Profitable

Amazon FBA Fees for candles Sellers

Amazon FBA charges you a referral fee of 45% on candles—the highest category on the platform. This includes an 8% mandatory FBA fee plus a 37% referral commission. On a $20 candle, that's $9 going directly to Amazon before you factor in your product cost. You also pay FBA fulfillment fees of roughly $3-5 per unit depending on weight and size (candles are heavy relative to value, which hurts margins). Storage fees cost $0.87 per cubic foot annually if inventory sits past 90 days.

Profit Margin Benchmarks

Good margins mean 30-40% net profit after all Amazon fees, product cost, and PPC spending. This requires wholesale costs under $2.50 and a selling price of $18-25. Average performers see 15-25% net margins, typically selling at $15-20 with product costs of $3-5. Poor margins fall below 10%—you'll see this with candles priced under $12, wholesale costs above $4, or high PPC spend needed to rank. Most new sellers land in the 'poor' category for their first few months.

Verdict: Is It Worth It?

Candles can be profitable on Amazon FBA, but the 45% referral fee makes it tougher than other categories. You need either a luxury positioning that justifies $25+ prices, a unique scent/niche to reduce competition, or a supplier relationship that gets your cost of goods below $2. If you're sourcing from generic suppliers at $4-5 per unit, skip this category. The market is real—but your competitive advantage matters more than the channel.

Frequently Asked Questions