Amazon is rolling out several changes in 2024 to enhance value and collaboration with sellers while maintaining affordable services. These changes, effective on different dates throughout the year, cover a range of fees and introduce new benefits. Let’s break down the key details:
- Inbound Placement Service Fee (Effective March 1, 2024):
- Introduces fees for standard and Large Bulky-sized products.
- Averages $0.27 per unit for standard-sized and $1.58 per unit for Large Bulky-sized products.
- Offers reduced or no fees based on shipping to a single or multiple locations.
- Separates inbound and outbound activities to enhance network efficiency.
- FBA Fulfillment Fee Rate Decrease (Effective April 15, 2024):
- Decreases fulfillment fees for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit.
- Additional $0.77 discount on per-unit fees for products priced below $10.
- Ships in Product Packaging (SIPP) Program Fee Discount (Effective February 5, 2024):
- Introduces fulfillment fee discounts ranging from $0.04 to $1.32 for eligible products in the SIPP program.
- Low-Inventory-Level Fee (Effective April 1, 2024):
- Introduces a fee for standard-sized products with consistently low inventory levels relative to unit sales.
- Sellers can avoid this fee by maintaining more than four weeks of inventory.
- Monthly Storage Fee Reduction (Effective April 1, 2024):
- Reduces non-peak monthly storage fees for standard-size products by an average of $0.09 per cubic foot.
- Referral Fee Reduction for Apparel Products (Effective January 15, 2024):
- Lowers referral fees for apparel products priced below $20.
- New Amazon Vine Pricing Structure (Effective October 19, 2023):
- Introduces lower fee tiers for products enrolled in Amazon Vine.
- US FBA New Selection Program Enhancements (Effective March 1, 2024):
- Offers a 10% rebate on sales for eligible new-to-FBA parent products.
- Expands program eligibility for oversize selection and introduces Vine benefits for eligible sellers.
- Supply Chain by Amazon Updates (Effective Various Dates):
- Updates fees for Amazon Global Logistics, Partnered Carrier Program, and Amazon Warehousing & Distribution.
- Introduces new discounts for auto-replenished products.
- Updates to Storage Utilization Surcharge, Removal, Disposal, Aged Inventory, Prep, and Inbound Defect Fees (Effective Various Dates):
- Increases granularity and rates for storage utilization surcharge.
- Adjusts removal, disposal, and aged inventory surcharge fees.
- Introduces prep service fee updates and inbound defect fees.
- Product Size Tier Changes (Effective February 5, 2024):
- Introduces new size bands for small standard and large standard sizes.
- Replaces Oversize tier with new Large Bulky and Extra-Large size tiers.
To see more details of the fee you can visit 2024 US FBA fulfillment fee changes.
- Returns Processing Fee Expansion (Effective June 1, 2024):
- Expands returns processing fee to high return-rate products in all categories (excluding apparel and shoes).
Amazon still offers a great way for sellers in the US to ship and manage their products through FBA. It’s not just for Amazon.com anymore – businesses can use it for other stuff too. Beyond Amazon.com order fulfillment, businesses can leverage Supply Chain by Amazon to maximize the benefits of FBA. But watch out! There are some new fees and higher costs that you need to keep an eye on. With these changes, you’ll need to be more careful about how you spend money and keep enough products in stock.
The introduction of unique fees and the increase in existing rates necessitates a heightened focus on cost management and inventory management practices. The implementation of Low-Inventory-Level fees and expanded Storage Utilization Surcharges means there are now additional expenses associated with both understocking and overstocking products in FBA Fulfillment centers.
We’re here at Barrel Aged E-commerce to help you understand these costs better. If you want to know more about how much FBA might cost you, just click Here and let’s chat.