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US FBA and referral fee changes — coming in February 2019

by SEAmod

Hello Sellers,

As the year draws to a close, we want to thank you for your collaboration in better managing aged inventory, which has helped us improve efficiency across our fulfillment network. While the costs to fulfill, transport, and deliver orders increased this year, our continued investment in supply chain innovation allows us to limit the fee changes for 2019. Certain fulfillment fees will be increasing, while many storage and referral fees will go down. Our goal was to minimize the impact of these adjustments for as many of you as possible, and we expect over 40% of FBA units shipped to experience no change—or even a decrease.

The storage fee changes will take effect February 15, 2019.

The fulfillment fee changes and referral fee changes will take effect February 19, 2019.

We are notifying you now so you can plan accordingly.

Links to all 2019 selling fee changes are also available at amazon.com/selling-fee-changes.

Susan

Tags: ASIN, Fees
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Seller_jZWpyInw8RkYT
In reply to: SEAmod's post

To be clear, the referral fee changes are not just for FBA; they are global–so FBM and SFP, also take note:

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SEAmod
In reply to: SEAmod's post

Hello @papyrophilia,

Thank you for posting that clarification. I have pinned the topic globally for visibility.

Susan

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Seller_4XucFhBTs4e6R
In reply to: SEAmod's post

The change in LTSF is good!

Storage fees
We will eliminate long-term storage fees for units that have been in a fulfillment center for 181-365 days. The last long-term storage fee charge for inventory we store for 181-365 days will be January 15, 2019. We will continue to charge long-term storage fees for units in a fulfillment center for more than 365 days.
We will reduce the minimum long-term storage fee on units in a fulfillment center for more than 365 days from $0.50 per unit to $0.15 per unit. The last charge at $0.50 per unit will be January 15, 2019.

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Seller_GzI0J7dLXTaB7
In reply to: SEAmod's post

I… I… I think I’m actually going to save a little money with these changes! Particularly two things: Items in 185-365 long term storage fee AND minimum LTSF for items >365 days goes to .15 from .50. That’s going to save me a little cash. Or I could stop sending stuff that doesn’t sell. HEHE.

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Seller_Wun3v7a8dXJDQ
In reply to: SEAmod's post

It appears that they are significantly reducing the Long Term Storage Fees.

  • No LTSF for items we store between 181 to 365 days.
  • Reduction in the minimum LTSF from $0.50 to $0.15 for items stored over 365 days.

That will make a substantial difference in storage fees for sellers like myself who sell lots of smaller items like DVD’s, Blu-Ray and CD’s. Currently almost 80% of the items I pay LTSF qualify for the minimum fee so this change will make a big difference in the amount I pay in storage.

Yes, I know there will me many posters (and/or trolls) claiming that no seller should ever have to pay LTSF if they manage their inventory correctly. However, those of us who offer thousands of high in demand items know that once Amazon or a liquidation seller jump on a listing we can be stuck with our inventory for some time. This helps defray some of those costs.

I believe this is the first time (as far as I can recall) where Amazon FBA made any substantial changes to their fee structure that actually benefited sellers. Unless I’m missing something, this may be the time to break out the champagne and celebrate (just a little).

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Seller_BwCRZStszCnCv
In reply to: SEAmod's post

Anyone care to speculate why Amazon has done a 180 on this? It couldn’t have been clearer about its intent to rid its warehouses of slow-moving inventory.

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Seller_G2stXrx2YSup3
In reply to: SEAmod's post

Very thankful for the jewlery minimum fee reduction. We sell a lot of light inexpensive jewelry and the two dollar minimum was killing us. Almost all our stuff is under $10 so this will allow us to offset shipping increases and lower prices on cheaper items by .50-.70 cents… Now if only that media fee were dropped on used items:). JK…won’t get greedy, just thankful with all the shipping increases, tariffs (it’s not just affecting Chinese products) and interest rising, somebody in the chain saw the bleeding! Good news!

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Seller_ovtshHLSzkXLU
In reply to: SEAmod's post

The LTSF change is great news! Well done.

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Seller_IN7JLoYGE6WxE
In reply to: SEAmod's post

So i am in the patio lawn and garden category…

My fee per item will no longer be $1 per item but will be 30 cents per item now?

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Seller_eKF1L3i4LxO1i
In reply to: SEAmod's post

I was hoping IPI would eliminate the need for LTS completely. But I’m happy to just lose the 6-month LTS. That will save a ton of time and eliminate a lot of headaches.

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