As we approach the end of 2023, Amazon has announced that it will be making updates to its FBA fees in order to increase customer service and partnership success. Here are those updates;
Inbound Placement Service Fee: These fees will be implemented starting March 1, 2024 to reflect investments made to position inventory closer to customers. However, you will have the option to reduce or eliminate this by shipping to a single location or multiple locations. These fees will average $0.27 for standard-sized items and $1.58 for oversized items. These fees will be collected 45 days after the items are received.
FBA Fulfillment Fee Rates: On average, FBA delivery fee rates for standard-sized items will decrease by $0.20 per unit starting April 15, 2024, and $0.61 per unit for oversized items. An additional discount of $0.77 per unit will continue for items priced under $10.
Ships in Product Packaging (SIPP) Program: A series of discounts will be implemented for eligible products in the Ships in Product Packaging program starting February 5, 2024. These discounts will range from $0.04 to $1.32 depending on the size and weight of the product.
Low-Inventory-Level Fee: This fee will go into effect for standard-sized products starting April 1, 2024. Important note: sellers with consistently low inventory levels relative to sales must maintain more than four weeks of inventory to avoid this fee.
Monthly Storage Fee Reduction: The monthly storage fee for standard-sized products will be reduced by an average discount of $0.09 starting April 1, 2024.
Referral Fee Reduction for Apparel Products: Starting January 15, 2024, there will be a reduction in referral fees for apparel products priced under $20. Items under $15 will drop from 17% to 5% per unit, and items between $15 and $20 will drop from 17% to 10%. Other referral fees will remain unchanged.
Amazon Vine Pricing Structure: New price levels for the Amazon Vine program will apply to products added to the program after October 19, 2023.
Supply Chain by Amazon Updates: Updated rates and new benefits for Amazon’s supply chain service, Supply Chain by Amazon, will be offered under Amazon Global Logistics, Partnered Carrier Program, and Amazon Warehousing & Distribution. There will also be new discounts for items automatically replenished by Amazon.
Returns Processing Fee Expansion: The returns processing fee will apply to high-return items in all categories (excluding apparel and footwear) starting June 1, 2024. This fee is intended to cover the operational costs of processing returns. Current returns processing fees in the apparel and footwear category will remain unchanged on average.
