Update to US FBA fulfillment fees starts April 28


#1

Since the start of the pandemic, we have significantly invested in Amazon’s store and fulfillment operations to better support you and our customers. We’ve nearly doubled fulfillment capacity, added over 750,000 full- and part-time roles, and our average hourly wage in the US has climbed from $15 to $18. These investments enabled tremendous growth for sellers, who have increased sales in our store by more than 70% during this time.

Like many, we have experienced significant cost increases and we have absorbed them, wherever possible, to reduce the impact on our selling partners. When we did increase fees, we were focused on addressing permanent costs and ensuring that our fees were competitive with those charged by other service providers. In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel prices and inflation have presented further challenges. It’s still unclear if these inflationary costs will go up or down, or for how long they will persist. Rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time—a mechanism broadly used across supply chain providers.

Beginning April 28, we will implement a fuel and inflation surcharge of 5% on top of our current Fulfillment by Amazon (FBA) fulfillment fee per-unit rates. We know that changing fees affects your business. Our teams are working each and every day to ensure that FBA remains a great value for the premium fulfillment and delivery service it provides. Since 2020, and inclusive of this change, Amazon has increased fulfillment rates less than other carriers and continues to cost significantly less than alternatives.

For more information, go to 2022 US FBA fulfillment fee changes.

Thank you for your understanding, and we look forward to our continued partnership.


Fuel and inflation surcharge starts April 28
Fuel and Inflation Surcharge - Starting April 28, 2022
Why might my Amazon fees for a product change when my product has not?
#2

It’s funny how all these American companies justify higher prices by claiming increased costs yet when it’s time to report their earnings they’re all reporting record profits.


#3

So is this 5% on pick, pack ship fees only? Or does it also increase our storage, inventory placement, removal, destroy, etc fees as well? This makes a huge difference as we need to account for all of it in our pricing structures.

Thanks,

TJB


#4

Someone tried to float me on the idea that “record profits” equals sustainability of the company reporting them. I can see that, but greed does no one well and once you wring too much money out of a populace, then what?


#5

We will have to do less FBA then. We’re getting squeezed from every direction right now, and something has to give. We’re actively assessing whether doing business with Amazon in the capacity we’re currently doing business with Amazon, makes sense anymore. It’s the least profitable part of our business by a mile. Likely what this means is that lower margin items, which is about half of what we sell on Amazon, will be removed from Amazon. On those items, we are often the only seller on Amazon, and raising prices isn’t an option. Funny, when we raise prices, Amazon often removes the buy box. When they raise prices, it’s the cost of doing business.


#6

Wow, can I charge Amazon and inflation surcharge for their charges against me? They literally do nothing but collect income from other peoples products what a gimmick. God I hate this site.


#8

Cant agree more. I am selling an outfit with the price 29.99 and Amazon deactivates most of my listings with the reason: violate fair price policy. They suggest to sell below $10 lol


#9

Amazon profits double and so do our fees -

Net income increased to $14.3 billion in the fourth quarter, or $27.75 per diluted share, compared with $7.2 billion, or $14.09 per diluted share, in fourth quarter 2020.


#11

Most of Their profits come from 3rd sellers like us. And they treat us like :poop:


#12

Also, an inflation surcharge is ridiculous. Prices aren’t ever going to decline, so adding an inflation surcharge is silly time. It’s a price hike, call it what it is. We’re not stupid.


#14

Let’s go Amazon!!!


#16

Yes, and most of their problems come from 3rd party sellers (hopefully not like us) too. I don’t see Amazon as an evil empire out to get us. I see them as trying to weed out the sellers that don’t have a business model to succeed here.

We all have the choice to sell here or don’t. If it doesn’t fit your business model, you are free find another way.


#17

How do you expect us to do FBA, then? The fees were already too high. I’m already paying Fulfillment fee about $5 for an item that I sell for $9. Not even talking about other expenses.


#18

My chief complaint here is timing. They’re giving us 15 days notice. It’s not enough time.

I’m pretty certain that we’re stuck in an inflationary spiral until we’re hit by a significant recession. I’m just going to pass the cost increase to the customer and hold-on for better times.


#19

I find it difficult to believe that my small and light item that weighs less than 2 ounces deserves the same fee increase as someone who sells 10 pound items for the same price.

Oh well, it just means inflation on Amazon. I will raise my prices to compensate. What else can we do? Amazon is becoming less of a “good deal” for customers, unless they like to make false INR claims, of course…

I remember when Amazon was the place to go for bargains. Now its only real selling point is convenience.


#20

That’s better than some of mine. I sell books and unless the book is $12+ you can’t sell it because the fees make up $10-11 per book and that’s before buy cost


#21

That’s what happens when you have a goliath managing majority of online sales. You don’t hear “I need xxxx, lets go on eBay”. No, it’s “I need xxxx, lets look on Amazon”. Similarly to how when searching something it’s “Just google it”


#22

It’s only on the fulfillment fee.


#23

It’s a never ending chase to please stock holders at the expense the employees and sellers.


#24

More increases, yet no better selling experience.

-Customer Service has not improved.
-Black hat methods are still running rampant
-Fulfillment centers lose items every replenishment
and the list goes on.

Stop acting like you were hurt during Covid-19, it is no secret all e-commerce platforms experienced record years.

When does the greed end?