Update to US referral and FBA fees starting January 17, 2023


#1

As we near the end of the year, we would like to thank you for your continued partnership. We started 2022 expecting a return to normalcy as COVID-19 restrictions eased, but fuel prices and inflationary pressure presented further challenges, some COVID-19-related challenges persisted, and we have seen recessionary concerns arise in many places around the world. Despite these challenges, you have persevered and demonstrated tremendous agility, and together, we have served customers well.

We continue to invest heavily in people, technology, transportation, and infrastructure to innovate on behalf of our selling partners. We do this while also working to be more efficient and manage our costs to serve you and customers, so we can provide an amazing service that is also a great value. Today, we would like to share the updates we are making to our U.S. referral and Fulfillment by Amazon (FBA) fees that will take effect on January 17, 2023, except where otherwise noted.


  1. Referral fees will remain unchanged. These fees provide sellers with traffic from hundreds of millions of customers, an attractive shopping experience for customers, payment processing, fraud prevention, and much more. We will remove the following fee categories: Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards. Impacted ASINs will be re-categorized to their most suitable product category, which may result in different (some lower, some higher) fees for those re-categorized products. For more information, please visit: Fee Category definitions.
  2. Earlier this year, we introduced a Fuel & Inflation Surcharge for our FBA fees for what we believed may only be temporary cost increases. These cost increases have not attenuated as quickly as we had hoped, so we will adjust our standard FBA fee rates to account for these increased costs and we will remove the separate Fuel & Inflation Surcharge at this time. These changes are reflected in the below summary.
  3. 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. As a result, we will make updates and create additional granularity in our FBA fees that continue to better align fees with our underlying costs. This will drive improved inventory health, more efficient use of our storage, and create more capacity for sellers who are using space efficiently. For more information, please visit: 2023 U.S. Fulfillment by Amazon fee changes and 2023 Storage fee changes. This includes seven areas:
    1. We will increase FBA outbound fee rates by $0.22, on average, which is below fee increases announced by other fulfillment and logistics providers. As part of this, we will introduce more granular weight tiers for FBA outbound fees (at the quarter and half pound level) to better align fees with shipping costs.
    2. For Apparel products, we 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 we made in 2022 whereby we extended dimensional weight to all large standard-size products below 12 ounces, except Apparel. This change will take effect on February 16, 2023.
    3. We will reduce the returns processing fee rates for customer-returned products in the Apparel and Shoes categories by an average of $0.20 per return.
    4. We will increase the monthly off-peak storage fee (January to September) for standard-size products by $0.04 per cubic foot and oversized products by $0.03 per cubic foot. We will increase Peak storage fees (October to December) for our non-sortable network by $0.20 per cubic foot, while those for our sortable network will remain unchanged.
    5. We will introduce a storage utilization surcharge for sellers who have a high cube of inventory stored in our fulfillment centers relative to the cube of their recent weekly sales. We estimate this will impact approximately 7.5% of sellers who use the highest volume of storage relative to their sales volume. This change will take effect on April 1, 2023.
    6. We will increase the surcharges applied to inventory stored between 271-365 days. Additionally, we will introduce aged inventory surcharges on inventory stored between 180-270 days, excluding products in the following categories: Apparel, Shoes, Bags, Jewelry, and Watches. These changes will take effect for the April 15, 2023 aged inventory assessment date. We encourage you to check your aged inventory and take action on these products. These changes will help drive more efficient use of our storage and create more capacity for sellers who are using space efficiently.
    7. We will increase removal and disposal fees driven by increased costs of these services. Liquidation fees will remain unchanged. To learn how to configure your settings for automated liquidations or removals, go to remove inventory automatically.
  4. We will lower fees for the U.S. FBA New Selection program. We will increase the rebate on sales for eligible new-to-FBA parent ASINs from 5% to 10% on average, increase the number of units eligible, and extend the time period of eligibility for certain benefits within the program. The rebate will still be applied for sellers who meet specific criteria. For more information, please visit: FBA New Selection.
  5. We will reduce fees by expanding the Small and Light Program and increasing the item price for eligible products from $10-or-less to $12-or-less, enabling sellers to realize the program’s lower fees for more of their selection. For more information, please visit: 2023 FBA Small and Light fee changes.

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 fulfillment 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% less expensive than comparable two-day shipping alternatives.

For a summary of all fee changes, please visit: amazon.com/selling-fee-changes.

With our gratitude and warm wishes for a healthy and prosperous holiday season, we want to thank you again for our continued partnership and the investments that you have made in partnership with us to serve customers through 2022, 2023, and beyond.


Inventory Levels For New Sellers
#2

And the myriad of others that you have created for us

To which we will now punish you even more greatly in an attempt to break your spirits completely

By giving them both your product and the money they paid for your product.

Unless of course we aren’t because we are now hemorraging money and manpower at our slave labor camps Fulfillment Centers (that we haven’t closed yet.)

Sorry, I couldn’t help myself.


#3

Wouldn’t inflationary pressure be reduced if Amazon stopped raising its fees in an effort to squeeze every last drop of profit they can from sellers & logisticians & delivery services? Inflation begins at the top of the food chain, not the bottom.


#4

sounds fair. I do like that they changed small and light to $12 and under now.


#5

I was just pondering the future of Small and Light…and really really hoping we would see an increase like this.
If we want to continue on Amazon we must increase or agility and adaptation.


#6

I would use small and light, but I felt like it was affecting my sales. It’s okay for them to put the expected arrival date, but do they really need a huge box drawing attention to the fact that shipping is slower?


#7

We are in the Collectible Coins category. Is this notice saying that our category is going away forever? What category will replace Collectible Coins? Any information is appreciated. Thanks! @Amazon_News


#9

Really loving how the “temporary” fuel surcharge since it didn’t go away as fast as Amazon hoped, instead of just increasing the length of time this surcharge will be applied they just decided to make it a permanent increase. So on February 1st if the price of a gallon of fuel drops in half, the surcharge would have disappeared but now that fee just exists forever.

Also maybe the reason FBA inventory is higher than expected is because Amazon is failing so hard on the 2 day delivery promise that the inventory that normally would have sold via FBA is now being fulfilled and sold via FBM? The thing a FBA seller cannot control is how fast Amazon is promising and delivering on that promise to get customers the products they order. Amazons complete failure over the last 3 months to get customers orders in a timely fashion is partially to blame for some sellers overstocking inventory at FBA centers, just saying.


#10

Well at least we can look forward to increased performance from your FC’s and Seller Support…

Oh, Wait. I didn’t fly to work on a Pegasus, while holding my leprechaun.

We just get to pay more for FC performance and Seller Support.

[Moderator Edit: Jim_Amazon removed inappropriate wording]


#11

Double them every month till unit limits go away.

Good.
Time to make importers and the store and pray sellers, who store their stuff at FC’s, clear out their stuff so unit limits go away on those of us who can manage inventory.


#12

DO NOT CHANGE THE CONTEXT JIM!!
Delete the whole line or post if need be, but don’t change the context. I used the words pathetic and inept for a reason. Removing just that one word changes the whole context of my sentence. It is not against forum rules to identify performance or lack thereof for services on the platform.

I understand you have rules and a valid purpose, but whitewashing my comments is not acceptable.


#13

@Jim_Amazon. I think you need to publish what is considered inappropriate at this point.

No one would consider “Pathetic” Inappropriate. EVER

Disappointing.


#14

Seconded.

Hopefully, doing so will serve as a counter to the demonstrably pathetic performance (Negative Inventory Receipts, anyone?) of the AFN (“Amazon Fulfillment Network”) in recent years.

Dum Spiro Spero - but I ain’t holding my breath.


On a related note: @Amazon_News, may I make so bold as to inquire whether or not the Editorial Team’s author of this post is aware of an improper usage of “…the cube of…” in the context of the sentence where it appears?


#15

I’ve had 87 refunds in the last month from “delivered late by carrier” or “missed fulfillment promise.” How about you fix that?

Amazon is trash. It’s awful we have to sell on this platform at all. It sucks.


#16

I would love the grocery 8% referral fee discount for products under $15 to see the max price amount increase to products under $20. Truthfully, I might even see it as a win if it was under $16. The $15 ceiling has been that way for years yet inflation and fee increases are running rampant. It’s getting impossible to sell grocery products below $15 and Amazon customers are struggling to pay higher amounts when it’s so much cheaper in store.


#17

I guess the annual increases to the FBA fees are expected at this stage but it is EXTREMELY frustrating that they are changing to dimensional weights on all apparel. We had designed our packaging based on the existing packaging rules to create thin packages that were long and wide. Now all this packaging is worthless as it will now add $2 to the FBA fees.

I am thinking of converting most of my product to FBM as that may be cheaper until I can get new packaging and burn the packaging I have. As soon as this arrives I am sure they will change the rules again. Walmarts fulfulment pricing is much cheaper and simpler. I presume I will take a sales hit with the loss of the prime tag but this constantly moving the goalposts is ridiculous. There should be at least 6 months notice if they are changing such significant rules.


#18

How exactly does dimensional weight work?


#19

Does this mean the categories are deprecated or just the separate fees?

Moving these items to other actual categories has conflicts with the way condition is stated, and in the permitted use of offer specific information on the detail page. The catalog pages cannot be moved automatically without creating major issues which will impact buyer satisfaction.


#20

I got the email of this announcement and read

Which sort of confused me, because I have been reading news articles such as these recently.

I’m very confused the news and Amazon can’t both be right, somebody is at best having a cognitive break from reality or even fibbing.


#21

Perhaps they meant executive salaries, then replacing some broken things at their facilities.