Amazon Referral Fees for Tools & Home Improvement

Amazon applies a 15% referral fee to the Tools & Home Improvement category, which includes power tools, hand tools, hardware, building supplies, electrical equipment, plumbing fixtures, painting supplies, and safety equipment. The fee is calculated on the total sales price including shipping.

This category serves both DIY homeowners and professional contractors, two segments with very different buying behaviors. DIY buyers tend to be price-sensitive and heavily influenced by reviews and how-to content, while professionals prioritize brand trust, durability specifications, and bulk pricing. Sellers should decide which segment to target and optimize their listings accordingly. Heavy and oversized tools face significant FBA shipping costs, and some items containing lithium batteries (cordless power tools) require hazmat classification. The category sees strong seasonal patterns tied to home improvement season (spring through fall) and significant spikes around key sale events.