Sellers on Amazon can expect to see new FBA fulfillment fees in the next couple of weeks as the previously announced fee changes take effect. Orders fulfilled on or after February 19th will be charged based on the new fee structure.
The new FBA fulfillment fees in some categories will be higher than before while most will be lower. According to a recent Seller Central post, this is due to Amazon’s efforts to streamline fulfillment channels in spite of increasing transportation and fulfillment costs.
Summary of Changes
There will be no new FBA fulfillment fees for small standard-size and large standard-size with shipping weights of 10 oz or less.
A minimum width and height of 2 inches will be applied when calculating the dimensional billing weight for oversize items due to packaging costs.
The new FBA fulfillment fees for products in other size tiers will increase slightly due to fulfillment and transportation costs. The following image shows the old and new FBA fulfillment fees that will be applied for different size tiers from February 19, 2019 onwards:
There will be separate fulfillment fees for dangerous goods that contain lithium-ion batteries and/or flammable or pressurized aerosol substances.
Starting in September 2019, sellers will be able to fund a flat discount of 5% or 10% through the Subscribe & Save program for new items added to the program.
For clothing items, the new FBA fulfillment fees will maintain the $0.40 charge per unit regardless of their size tier.
The new FBA fulfillment fees for large oversize items will be calculated based on dimensional weight when it exceeds the actual unit weight.
Dangerous Goods Fees
The following image shows the new, separate FBA fulfillment fees to be applied to items identified as dangerous goods:
Note that the $0.40 additional charge per unit for clothing items still applies.
Subscribe & Save
Customers who are enrolled in Amazon’s Subscribe & Save program have the privilege of enjoying discounts for their subscriptions. From February 19th, sellers will be able to apply a flat 5% or 10% discount on new items added to the program. Meantime, customers can enjoy an additional 5% off when they have products delivered to the same address from five or more subscriptions in a month – whether from the same or different sellers.
Eligible product categories for this fee structure are: Beauty, Grocery, Health & Baby Care (with a ), Automotive Parts & Tools, Electronics, Home Tools & Home Improvement, Industrial Supplies, Kitchen, Lawn & Garden, Musical Instruments, Office Supplies, Outdoors, Pet Supplies, Sports, and Toys.
Note that Amazon Family customers get a flat 20% discount on diapers regardless of the number of subscriptions they have had delivered to their address.
As a result of the new FBA fulfillment fees, sellers will generally see higher fulfillment costs for 60% of FBA items. The remaining 40% of items will be fulfilled for less or the same as previously.[/vc_column_text][/vc_column][/vc_row]