US FBA and referral fee changes coming February 18, 2020

#1

This year we invested more than $15 billion in infrastructure, programs, people, and 150 new tools and services to help our sellers grow their brands and businesses. We also invested billions of dollars to expand FREE One-Day Delivery to more than 10 million Prime-eligible items. We are thrilled with the response of our mutual customers. Thank you for your continued innovation in providing unique selection and low prices for customers.

Driven by FREE One-Day Delivery, this was the largest one-year investment we have ever made in FBA. Nevertheless, in 2020, we will make only moderate increases (about 3%) in fulfillment fees, below industry average, because we remain committed to your continued success. We will also decrease select referral fees and introduce an exciting new selection program.

Please review the fee change pages below. The changes will take effect February 18, 2020, except where noted.

2020 US referral fee changes

2020 US fulfillment fee changes

2020 FBA fee changes for monthly storage, Label Service and removal orders

2020 FBA Small and Light fee changes

FBA New Selection program

US FBA and referral fee changes — coming in February 2020
#2

10% up on FBA fees
10% up on storage fees except Oct-Dec (pretty crazy as is)
Tired removal and disposal fees (thats pretty bad especially if you sell oversize).

As expected …
Amazon is great when it comes to Christmas gifts…

#3

FBA is dead!

#4

WOW
Amz you seriously want us to lower our price while our cost goes up! Guess you won’t be happy until we give it away or just buy it and give it to you!!! especially after reading the article in the NY paper SHAME SHAME SHAME!!!
'or maybe you want all china sellers?

i don’t know but i’m glad my ebay sales and my website sales continue to grow as amazon sales diminish and amazon you did that to yourself by taking the buy box away from me! and then you put our competition add on top of our page saying that it’s priced lower but when there shipping charge is added in it’s priced 2.00 higher ohh yea thats right they pay big $$$ to advertise!

#5

I am assuming the Oversize Charge per-unit for the removal fees will be based on dimensional weight, rather than actual weight?

#6

Of course it is for China.

For new-to-FBA ASINs, we will offer free monthly storage, free removals, and free FBA returns processing for a limited time. For sellers new to FBA, we will also offer an inbound transportation discount. The program is subject to limitations and eligible sellers must opt in. The new program will launch April 1, 2020 in the US, Europe and Japan.

They want the incentivize all the chinese factory to get a taste of amazon

#7

Amazon, you are obviously living in La La land

We sure can see it so crystal clear:

  • Sales are controlled and limited with your magic switch (sprinkler)
  • Sellers who have been here 5-12 years are now making a fraction of what they used to make because of your throttling.
  • Your site is now so infested with cheap junk driving buyers away
  • Your search is so messed up, buyers get so frustrated and leave
  • You continue pilling your pockets with Ads revenues, cluttering each page where buyers get annoyed and sellers get ripped off and end up paying more for advertising then what they get in sales.
  • You have absolutely ZERO respect for your sellers … We see it on the forums almost every day.
  • Your seller support is useless.
  • You can’t adhere to your own policies.
  • You compete unfairly with your sellers - No wonder you’re being investigated.

I could go on and on …
Do you really expect sellers to believe that you are helping them grow their brands and businesses?

Many of us are certainly growing our business, but not on this platform anymore …

What a joke …

#8

did i miss it or are there no changes to long term storage fees?

#9

I am ok with Amazon raising FBA fees. Amazon is losing money on FBA. I am bothered by existing sellers subsidizing new sellers.

#10

The summary included in the email that was sent about this is good:

Please review the fee change highlights, as well as each fee change page in Seller Central linked below. The changes will take effect February 18, 2020, except where noted.
US referral fees

  • We will reduce the referral fee percentage for Shoes, Handbags & Sunglasses products above $75 from 18% to 15%.
  • We will reduce the referral fee percentage for outdoor furniture items from 15% to 10% on any portion of the total sales price above $200.
  • We will reduce the referral fee percentage for personal care appliances from 15% to 8% for items with a total sales price of $10 or less. Items with a total sales price above $10 for the category will be unaffected.
  • All activewear clothing will be charged the Clothing category referral fee percentage of 17%.
  • We will discontinue the Amazon Business tiered fee structure for total product values above $1,000.
    See details of 2020 US referral fee changes
    US Fulfillment by Amazon fees
  • We will implement moderate increases in fulfillment fees, just over 3% on average.
  • For clothing, we will eliminate the $0.40 per-unit surcharge and instead create a fee schedule specific to clothing items.
  • For FBA Small and Light, we will consolidate the order handling, Pick & Pack, and weight-handling fees into a single per-unit fulfillment fee.
  • January to September monthly inventory storage fees will increase by $0.06 per cubic foot for standard-size items. This change will first be reflected in April 2020 charges for storage that occurs in March 2020.
  • For removal and disposal fees, we will charge per-unit fees by weight.
  • We will increase the fee for the optional FBA label service from $0.20 per unit to $0.30 per unit.
    See details of 2020 US Fulfillment by Amazon fee change
    Announcing the FBA New Selection Program
    Last March, we initiated a promotion offering free monthly storage and removals for new-to-Amazon ASINs, subject to limitations. Based on the success of the promotion, we are creating a new, enhanced program called the FBA New Selection Program. For new-to-FBA ASINs, we will offer free monthly storage, free removals, and free FBA returns processing for a limited time. For sellers new to FBA, we will also offer an inbound transportation discount. The program is subject to limitations and eligible sellers must opt in. The new program will launch April 1, 2020 in the US, Europe and Japan.
    Get more information on the FBA New Selection Program
    For a summary of all fee changes, visit amazon.com/selling-fee-changes. We welcome your feedback at fba-fee-announce-feedback@amazon.com and will review each comment.
#11

Personally I think this is a welcome improvement as it’s never seemed fair that my 3-6 LB per unit removal orders only cost 50 cents per unit.

I really hope that this fee structures paves the way for a feature that allows us to have all returned items marked as unsellable so we can have them removed for inspection prior to being resold as new.

#12

I hardly consider this optional when we are required to label practically everything with FNSKU labels.

#13

This has nothing to do with helping sellers.

Remind us how much Amazon paid in taxes?

How about spending some money on seller support?

#14

That was a typo. They meant to say “help ourselves grow our brands and businesses.”

#15

Long live the King… there is only one of them - and we all know who he is… taking our money to make more money… happy 2020… if your still here in 2021 - you’ve done well !!

#16

Of course it’s optional as no one is preventing you from doing it yourself… Not sure why practically all your listings are requiring FNSKU labels but most of mine don’t. The times I’ve seen where it wasn’t allowed was because there were duplicate ASINs that needed to be merged. Regardless I put them on everything anyway as I don’t want my inventory mixed up with anyone elses.

#17

That’s why we are required to label practically everything with FNSKU labels.

#18

Sure but that’s a personal business decision not Amazon requiring you do it… And a good one AFAIC…

#19

What does 15 Billion Dollars buy? It sure doesn’t buy back Amazon’s soul, if they ever had one to begin with.

#20

I am curious what an Amazon Fulfillment Center employee/contractor/temp is paid per unit.