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Update to US referral and Fulfillment by Amazon fees

by News_Amazon

As we near the end of 2023, we would like to thank you for your continued partnership in serving customers and together achieving new milestones of success. This year, our partnership delivered the largest selection of products to US Prime members at the fastest speeds ever. As of the end of July, more than 1.8 billion product units were delivered on the same or next day—nearly four times what we delivered at those speeds in 2019—with the majority of these units sold by independent sellers like you. We have continued to focus on providing you with powerful selling capabilities, including investment of billions of dollars in technology, transportation, and infrastructure to reinvent our fulfillment network. By regionalizing our US fulfillment center operations and growing our same-day delivery network, we are able to place more products closer to customers, in order to deliver products faster and at a lower cost. These investments result in higher customer satisfaction and more sales for you.

As we look to 2024, we will implement a set of fee changes that continue to provide you with a great value and allow us to partner together to offer customers amazing service while reducing our collective costs to do so. After these changes, we expect that sellers will see an average increase of $0.15 in fees per unit sold (which is significantly less than the increases announced by other logistics providers); however, we also expect that there will be many sellers who will see a decrease in the average fees paid to Amazon per unit sold. Amazon’s fulfillment fees will continue to remain an average of 70% less expensive than two-day shipping methods offered by other major third-party logistics providers.

In particular, we will focus on how we partner together to inbound and place inventory across our network. Placing inventory close to customers improves the speed of those orders, driving more sales at lower transportation cost. To enable more efficient use of our network, we will begin charging separately for inbound and outbound activities. As a result, we will lower our outbound fees while creating new inbound fees that you can reduce or avoid entirely based on how you inbound products to us:

  • We will introduce an inbound placement service fee for standard and Large Bulky-sized products to reflect our cost of distributing inventory to fulfillment centers close to customers. These fees will average $0.27 per unit for standard-sized products and $1.58 per unit for Large Bulky-sized products. We will give you the option to pay reduced fees or even no fee based upon whether you send your shipment to a single location or multiple locations. These fees will be effective starting March 1, 2024, and the fees will be charged 45 days after products are received. Go to the Inbound placement service fee page for more details.
  • On average, we will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit. These fees will apply starting April 15, 2024, the same date that the first inbound placement fees will begin to be charged. Products priced below $10 will continue to have an additional $0.77 discount on per-unit fees. Go to the FBA fulfillment fee rates page for more details.
  • In addition, to reflect the cost savings when products can be shipped in their existing packaging, we will offer a fulfillment fee discount ranging from $0.04 to $1.32, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program. These discounts will apply starting February 5, 2024. Go to the Ships in Product Packaging (SIPP) program page for more details.

In addition to inbounding and placement, maintaining sufficient inventory levels also enables us to place inventory closer to customers across our network, reducing costs to fulfill orders. In cases where you have low inventory levels, this drives transportation costs higher, and we will introduce fees to align with these underlying costs. Where your actions reduce our costs of fulfillment by maintaining healthy inventory levels, you will see lower fees for these items. Accordingly, we will make the following changes:

  • We will introduce a low-inventory-level fee for standard-sized products. The fee applies if you carry consistently low levels of inventory relative to unit sales, as this inhibits our ability to distribute products across our network, degrading delivery speeds and increasing our shipping costs. Sellers can avoid this fee by maintaining more than four weeks of inventory relative to sales. These fees will apply starting April 1, 2024. Go to the Low-inventory-level fee page for more details.
  • To help enable you to carry sufficient levels of inventory, we will reduce the non-peak monthly storage fees for standard-size products by an average of $0.09 per cubic foot, from an average of $0.87 per cubic foot to $0.78 per cubic foot, from January through September. Monthly storage fees for non-standard-sizes will remain unchanged. This change will apply starting April 1, 2024. Go to the monthly storage fees page for more details.

We will also provide the following new or expanded services and benefits:

  • We will reduce referral fees for apparel products priced below $20. For items priced under $15, we will decrease referral fees from 17% to 5%. For products priced between $15 and $20, we will decrease referral fees from 17% to 10%. Other referral fees will remain unchanged. These reduced fees will apply starting January 15, 2024.
  • We introduced a new, lower pricing structure for Amazon Vine. This program is designed to help brands get insightful reviews and help customers make informed buying decisions. The new fee tiers apply to products enrolled in the program on or after October 19, 2023. Go to the Amazon Vine page for more details.
  • We will expand benefits as part of the US FBA New Selection program. We will provide an average 10% rebate on sales of eligible new-to-FBA parent products, newly including these benefits for non-branded selection. In addition, we will provide expanded program eligibility for oversize selection and newly offer Vine benefits for eligible sellers and associated selection. Changes will take place starting March 1, 2024. Go to the FBA New Selection page for more details.
  • We will introduce updated rates and new benefits for Supply Chain by Amazon, an automated set of supply chain services that provides an end-to-end solution to quickly and reliably move your products from manufacturers to customers around the world. We are updating the fees for Amazon Global Logistics, Partnered Carrier Program, and Amazon Warehousing & Distribution. We will also provide new discounts for products that are auto-replenished by Amazon. Go to the Supply Chain by Amazon page for more details.

We are also making annual updates to Storage Utilization Surcharge, Removal, Disposal, Aged Inventory, Prep, and Inbound Defect fees. For outbound fees, we will also make our rate card more granular for standard-sized products and revise the structure and eligibility criteria for non-standard-size products by introducing Large Bulky and Extra-Large size tiers.

Finally, we will expand the returns processing fee to apply to high return-rate products in all categories, excluding apparel and shoes. This fee will address the operational costs of returns and reduce waste. The returns processing fee will only apply to products that have the highest return rates relative to other products in their category and will apply starting June 1, 2024. Existing returns processing fees for apparel and shoes will remain unchanged on average. Go to the Returns processing fee page for more details.

For a detailed summary of all fee changes, go to amazon.com/selling-fee-changes. For fee updates by type, go to 2024 US Fulfillment by Amazon fee changes and 2024 storage fee changes.

We appreciate your taking the time to understand these new fees, how they continue to provide you with a great value, and how they help us continue to partner together to offer customers amazing service while reducing our collective costs to do so.

We wish you a healthy and prosperous holiday season, and we thank you for your continued partnership.

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

The low inventory fee is INSANE. There are so many things out of our control and Amazon is going to take advantage yet again of 3rd party sellers.

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1870
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Seller_9ydi1DM6Ekkc3
In reply to: News_Amazon's post

It's not even an ASIN storage fee. It's a fee for each fulfillment. It's insanity.

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740
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Seller_KrIZiAqW5Ddf0
In reply to: News_Amazon's post

Oh boy more hidden and convoluted fees! I don't know about selling anything beyond books on Amazon but this place just gets worse and worse for third-party sellers.

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580
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Seller_aR7bd4CyU1nXv
In reply to: News_Amazon's post

Amazon is making it way too complicated for the average seller.

Why can't Amazon keep the fees simple?

If they need to increase the fulfillment fee to help their bottom line they should do it in a simple way.

I understand that sellers who have less inventory in stock cost more to deliver their products however adding so much detail to the pricing chart will end up hurting all the sellers

In regards to the low-inventory-level fee, they can increase the price a bit for ALL orders and this will cover the smaller sellers' increased costs.

The fact that they are lowering the storage fee by $0.09 per cubic foot doesn't offset much of the low-inventory-level fee because the storage fee is based on the measurement of the unit sold which many times can be 0.05 of a cubic foot or less which means a discount of $0.01 per unit or less.

The low-inventory-level fee can easily be as much as $0.97 per unit sold.

And for the larger sellers, this will also hurt them because the fees are too complicated to be on top of them.

And the same logic is for the inventory placement fee.

Why should Amazon make it complicated? just increase the prising when needed an keep it simple.

In regards to the new fulfillment fee chart, Dividing the weight by 1/4 of a pound is also challenging because Amazon measurements of my products often change by more than 1/4 of a pound.

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Seller_5SoN14CeFkSlZ
In reply to: News_Amazon's post

this is impossibly too confusing and granular.

plus, for whatever reason, you don't let me select the discount option on placement for most of my products. my best selling product ALWAYS DEFAULTS to the same FC for 7 years and counting.

So i'm forced to pay this new fee now???

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Seller_gdX6mm1HIo4ov
In reply to: News_Amazon's post

Whatever happened to that extra fuel surcharge fee that Amazon added a few years ago and said it would be temporary? Did they just quietly decide to keep it?

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550
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Seller_EcWkJa2ukzYqu
In reply to: News_Amazon's post

Here’s an idea, stop sending me “unfulfillable” inventory in packaging 20x the size of the product.

It’s no wonder it’s so expensive.

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Seller_t62CBQtzPH5of
In reply to: News_Amazon's post

Whoever came up with the low inventory level fee should be fired and blackballed from the industry. And with all these ridiculous fee changes good luck trying to figure out what your costs per unit are ahead of time. This garbage could only come from a corporate boardroom full of clowns who have no clue what it's like from this side of the business.

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Seller_mFUNUCCYB0cok
In reply to: News_Amazon's post

This is the biggest load of crock I've ever read. So, now let's charge sellers a receiving fee. And also a fee for having too little inventory and/or too much inventory. You should be ashamed Amazon. Ashamed! I think it's time we figure out ways to sell our goods off Amazon because this is becoming a nightmare that continues to erode profits. I'm sure the complexity and confusion of these fees was done on purpose.

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590
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Seller_bWJDvYx2wtfAj
In reply to: News_Amazon's post

Get rid of low inventory storage fees! We work with supplements and groceries and there are always shortages! This will cause many sellers NOT to use FBA.

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