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Low-Price FBA rates to replace Small and Light on August 29

by News_Amazon

For a number of years, the Fulfillment by Amazon (FBA) Small and Light program has provided sellers with an option to enroll low-price, small, and light products into this program to receive lower FBA rates because the program provided slower shipping speeds than standard FBA. We have learned a great deal over the last few years, including how these lower fees have helped enable sellers to offer far more low-price selection to customers and how much customers value the continued improvements we have made in speed. As a result, we have decided to end the US FBA Small and Light program and instead lower the standard FBA rates for all low-price products.

Starting August 29, 2023, US FBA will introduce these lower FBA rates for all items priced below $10. The new rates make it simpler for every seller to take advantage of lower fees on their low-priced selection, while providing the same, fast FBA delivery speeds that customers love. Any eligible items will automatically receive the low-price rates and will not be subject to 2023 holiday peak fulfillment fees that will apply from October 15, 2023, through January 14, 2024.

With this change, we will close the Small and Light program in the US effective August 29, when the new low-price FBA rates go into effect. Until then, items enrolled in Small and Light will continue to have Small and Light rates applied. Enrollment of new products into the program will end after July 17.

The new FBA rates for low-price products will be an average of $0.77 lower per item than the current FBA rates for these products. If your products were enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.30 more per item than with Small and Light, but your items will now ship with the faster FBA fulfillment speeds. If your products were not enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.77 less per item while continuing to enjoy the fast FBA fulfillment speeds you have been receiving. For items priced above $10, they will automatically have the standard FBA rates and shipping speeds applied.

We understand that changes to programs and fees can affect your business. To help prepare for this change, you’ll have approximately two months until the new lower FBA rates for low-price products take effect and the Small and Light program closes. We recommend that you review your product offerings, check your inventory status, and review the FBA rates to assess any changes.

To review the latest FBA rates, go to Low-Price FBA fees.

For more information on the current FBA rates, go to FBA fulfillment fee.

If you have questions, you can also reach out to Selling Partner Support.

Thank you for using FBA as we strive to continue to improve this program and how it helps drive your business growth.

Tags: News and Announcements
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Seller_m1kvtRZcQzPyz
In reply to: News_Amazon's post

Overall a much needed change (Not Enrolling Into S&L), however the price decline from $12 to $10 is a massive shift backwards IMO, we have several products that fall just under $12 and they do very well however $10 is too low as our margin is approximately $2.00.

Very opposed to this change, but hey... my voice isn't heard anyways so who cares.

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Seller_HRcJa1gdGHeov
In reply to: News_Amazon's post

Walking back the recent $11.99 FBA Small and Light increase is bad, this really helped us out a lot.

Spinning this as anything other than a price hike in disingenuous.

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Seller_3v3NsebvdQE7K
In reply to: News_Amazon's post

Another example of Amazon taking a bite out of 3rd party sellers profit. If anything the price should have increased from $11.99 to 12.99, not gone backwards. Many customers do not care about delivery times like they use to obsess over it.

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Seller_YJpC7omTlTdNy
In reply to: News_Amazon's post

the change down to $10 is not appropriate

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Seller_Wc3Bsag2t8yD7
In reply to: News_Amazon's post

So to understand this:

SNL program back to $10 cap, more expensive but better shipping speed so in theory better search placement. Lower margin, higher volume on items that work, which is most our products so that's OK. We get better pricing on 50k+ MOQs at the factory so in theory this would be a wash for us.

Items that fall in the $10-$12 range need an eval, either a price hike to account for the shipping increase or take a margin loss. Lowered volume at higher price for us since our products in this pricepoint can't take absorb the margin difference. This is tricky for a subset of our items barely hitting the 10k MOQs because we need the movement to make those listings work from a cashflow turn-basis.

We've been doing SNL since it debuted in 2015 and historically moved high-8s in this pricepoint... we do kinda hope the $12 limit can be stayed for the consumer's benefit, I'm sure someone at Amazon has the sales data around the <$12 products and I hope they consider this for all of us!

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Seller_pApwA0i53ujuP
In reply to: News_Amazon's post

Agree with everyone else. You increase the fees while reducing the high limit.

The auto-enrollment should be a basic rule. But removing S&L without remorse and just a 2 months notice is really bad. I think we all agree that we rather have the buyer take some extra time on a cheap item, and have him/her pay less for it.

Do not agree at all. But as Jmoe said.. "Our voices will not be heard anyways".

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Seller_oljVSaeMvWjqE
In reply to: News_Amazon's post

They spin it as a savings when all of our fulfillment fees we pay are going up

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Seller_fghxNnr1iEThd
In reply to: News_Amazon's post

Why tf would the price threshold be going down? Inflation running crazy the threshold should increase if anything. This will negatively affect tons of sellers and will benefit no one

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Seller_MnFJ6jqlMqeSf
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Seller_Kz4OWECFfcR8n
In reply to: News_Amazon's post

Hello,

The 30 cent fee increase can be absorbed but the price limit from 12 down to 10 is horrific.. How does the shipping cost more or less based on the price of the item? Fees should be based on shipping cost not price. With that said, if a item has a bottom price of 9.79 but can maximize profit by selling it at 11.99 now amazon has reduced the profit to 20 cents. ..If we choose to keep the price above 10 then the standard fee jumps up 90 cents so the retail price will actually have a new bottom price of 10.79 or greater to just make 20 cents as an example... In effect the merchant would take a loss if the pricing software raises above the 9.99 and does not jump retail to 10.79.. What does this mean? The merchant has to choose. Make the top price 10 and make 20 cents or leave the reduced fee pricing and set a price only based on the standard fba fees. Here come high price errors as the fees go up and customers pay more. Inflation is out of control so the solution is to cut the margins of the merchant.. If Amazon wants to solve headaches for everyone then set a standard fba cost based on weight. Amazon has raised the fba fees for items that exceed a certain dimension. It appears they can understand that low priced items can still be large in size and have correctly adjusted for that fee increase....but they appear to be blind to this reality when they wish to ignore the dimensions and weight of an item and set a fee based on price when it suites them.

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