As of April 28, Amazon introduced a new 5% surcharge on shipping through fulfillment by Amazon. This means that only FBA sellers will experience any change to fees. These changes will not affect sellers that are shipping using the fulfillment by merchant model.
But what the sellers that this policy does affect? What does this mean for them? Below we’ll get into what the fee change is, what it means to you, and how to stay on top of new changes to come.
What is the Fee Change?
Amazon’s new fee is specifically for fulfillment by Amazon sellers. The increase does not affect the Amazon commission fee. What it does affect is the fee Amazon charges for picking, packing, and shipping.
For example, the cost of the fulfillment fee per unit for a small standard package of 6-12oz went from $3.07 to $3.22.
For those concerned about the cost of heavier per unit fees, a large oversized package has gone from $82.56 + $0.44/lb above the first lb to $86.56+$0.46/lb, etc.
In a notice to sellers, Amazon stated that this increase accounts for “higher permanent operation costs.” Adding that this partly includes Amazon’s recent warehouse expansions, increased wages, and 750,000 new workers.
It is also safe to conclude Amazon is also accounting for an 8.5% increase in inflation, and the 48% rise in gas prices over the last year.
What’s this Means for Sellers.
The expectation is that this will impact some sellers more than others, but it is not expected to force most to raise prices. Other fulfillment solutions such as FedEx have applied their own new surcharges. This makes FBA still the most cost-effective way to fulfill orders on average.
Therefore, it’ll be best not to panic. The effect on the bottom line for most sellers will be minimal. However, it is still recommended that sellers be conscious of the change.
Although it is best not to worry about the change in fees, sellers should keep track of all changes to ensure all their products remain profitable.
Contact us today for help doing just that. We provide education, brand essentials, and total handling of your Amazon profile. This will help improve your chances on Amazon Marketplace no matter how you ship.
We don’t get paid unless you do, and that means your success is our success.