Amazon increase fees from January
Amazon has announced that it will increase fees for third-party Sellers storing their items in US Amazon Fulfilment Centres from January.
In FBA, all Sellers pay a percentage of their total sales, shipping costs and gift-wrapping charges, and those won’t change under the new guidelines.
But FBA outbound fee rates will increase by $0.22 on average, monthly storage fees will rise by around 20 centre per cubic foot, and a new storage surcharge will apply to Sellers who store a high cube of inventory relative to the cube of their recent weekly sales, effective April 1, 2023.
Amazon will also increase the surcharges applied to inventory stored between 271-365 days, effective April 15, 2023, and will introduce aged inventory surcharges on inventory stored between 180-270 days, excluding products in the following categories: Apparel, Shoes, Bags, Jewellery, and Watches, effective April 15, 2023.
In addition, Amazon will almost double the cost of removing items from Amazon fulfilment centres. For example, to remove a 2-pound standard-sized item from Amazon’s fulfilment centre currently costs $1.14. In January, it will cost $2.20 to remove or dispose of the item.
For Apparel products, Amazon will use the greater of unit weight or dimensional weight to determine the shipping weight for all large standard-size products. This is similar to the change Amazon made in 2022 when it extended dimensional weight to all large standard-size products below 12 ounces, except Apparel. This change will take effect on February 16, 2023.
In a statement, Amazon explained: “This year, we saw some sellers use more of our storage than we expected or believe was needed to serve customers well, and that constrained how much product from other sellers could be sent into FBA.
“These changes are designed to allow us to collectively better serve customers while ensuring that we continue to provide you with a great value relative to alternatives. On average, these fee changes are below those announced so far by other logistics providers. In addition, Amazon’s fulfilment fees will remain an average of 30% less expensive than standard-shipping methods offered by other major third-party logistics providers, and an average of 70 percent less expensive than comparable two-day shipping alternatives.”
You can read Amazon’s full statement at: https://www.aboutamazon.com/news/company-news/an-update-to-our-us-referral-and-fba-fees
There is further information on the changes atL: https://sellercentral.amazon.com/help/hub/reference/external/G201411300
Thompson and Holt managing partner Craig Gedey: “This is another challenge that Amazon Sellers will have to overcome in the New Year. The fee increases are far from disastrous, but they will be a factor in businesses budgeting in the New Year.
“As always we would advise that Sellers take time to see exactly how the fees will impact their own individual businesses, because the measurements are specific and it will depend how much you store in terms of what the consequences will be. You may have to amend your own pricing structure to cover this, but as always be mindful of your competitors’ moves at the same time.”