Amazon Announces US FBA & Referral Fee Changes for 2020
From Amazon: “Driven by FREE One-Day Delivery, this was the largest one-year investment we have ever made in FBA. Nevertheless, in 2020, we will make only moderate increases (about 3%) in fulfillment fees, below industry average, because we remain committed to your continued success. We will also decrease select referral fees and introduce an exciting new selection program.”
February 26, 2020 - By Julean Boykins
Amazon has recently just announced a modest increase in US FBA and referral fees due to their higher investment in large-scale programs like one-day delivery, infrastructure, and other programs. Updates have already gone into effect as of February 18th, 2020.
Also, please be aware that starting April 1, 2020, Amazon is launching a new program for new FBA listings — these items can get free monthly storage, free removals, and free returns processing. New FBA participants can also be qualified to receive a $100 discount on Amazon Partnered Carrier shipping.
You can find the general overview per Amazon here: https://sellercentral.amazon.com/gp/help/external/G201411300.
U.S. Fulfillment Fee Updates for 2020
To briefly summarize, small standard, large standard, and medium oversized products have received an increase in their fees.
Regarding clothing and accessories, the $0.40 per-unit surcharge will be removed and per-unit fulfillment fees will increase for both small and large standard products. For oversized clothing tiers, they will be charged per the core FBA fulfillment fees outlined in the charts above.
Item’s that are part of Amazon’s dangerous good program — also known as hazardous materials or hazmat products — will receive a per-unit fulfillment fee increase on both small and large standard products.
FBA fee changes will apply on all core products, excluding clothing. For all the sellers and brands participating in FBA should reference the updated charts for a full overview: https://sellercentral.amazon.com/gp/help/external/GABBX6GZPA8MSZGW.
U.S. Referral Fee Updates for 2020
Referral fees — the portion of the product sale that sellers pay on each product sold — is also receiving fee increases for 2020.
As a quick reference to some of the changes therein:
- Activewear will be charged with a fee of 17% as opposed to 15%
- The fees for shoes, handbags, and sunglasses will be reduced to 15% from 18% on products with a total sale price above $75
- Outdoor furniture fees are being lowered from 15% to 10% from any portion of the total sale price above $200
- Personal care appliances are having their fees lowered from 15% to 8% for items with a total sale price of $10 or less
- However, the items above $10 will stay at their current referral fee of 15%
- Ring accessories are now being consolidated into the Amazon Device Accessories category and will take on that fee of 45%
You can find the full summary of U.S. Referral Fee changes on Amazon here: https://sellercentral.amazon.com/gc/fee-changes.
FBA Fee Changes for Monthly Storage, Label Service, and Removal Orders
January to September monthly inventory storage fees will increase by $0.06 per cubic foot for non-standard-size items. For all storage that takes place in March 2020, changes will be reflected in April 2020 charges for storage. For oversize items, their current monthly storage fee schedule will remain as-is.
Fees for the optional FBA label Service will increase to $0.30 per unit from $0.20 per unit. For FBA Small and Light, the per-unit fee will be $0.10.
Regarding removal and disposal orders, Amazon will charge per-unit removal order feed by weight band. Depending on the item, fees will either increase, decrease, or remain the same.
You can reference the full table of fee changes for FBA Monthly Storage, Label Service, and Removal Orders here: https://sellercentral.amazon.com/gp/help/external/GZ5Q2VW5WF4JWRGC.
FBA Small and Light Fee Changes for 2020
Beginning on February 18th, 2020, the following fee changes will go into effect for the FBA Small and Light program:
- Handling, pick & pack, and weight handling fees are being consolidated into a single per-unit fulfillment fee by weight
- There will be a charge of $0.10 per unit for Small and Light items in the optional FBA Label Service
- Long-term storage fees for Small and Light units will be eliminated for units that have been in a fulfillment center for 181 to 365 days
- Beginning February 15, all standard FBA Storage fees for Small and Light will see a reduces per-unit fee from $0.50 to $0.15
- Small and Light-specific long-term storage fee rates will be discontinued
- Removal and disposal fees for Small and Light are receiving the same changes that apply to Standard FBA
You can read the complete table of fee changes for FBA Small and Light here: https://sellercentral.amazon.com/gp/help/external/G3Z4AX6UNV5EN2VR.
FBA New Selection Program for 2020
Beginning on April 1, 2020, Amazon is launching a new program for participants who can qualify to get free monthly storage, free removals, and free returns processing on eligible new-to-FBA ASINs. New FBA participants can also be qualified to receive a $100 discount on Amazon Partnered Carrier shipping.
You can find all of the details regarding the FBA New Selection program and how to opt-in here: https://sellercentral.amazon.com/gp/help/external/GWHQRT98SAZC29VQ.
Your Formula For Success
With Amazon investing more than $15 billion across various avenues and tools to help its sellers grow their businesses and brands, all outlined fee changes are to help the company face the ever-increasing rise in shipping costs.
Be sure to familiarize yourself with all of the modifications to your FBA schedule so you can make the proper adjustments to your profit calculations and keep your operations running smoothly.