AMAZON SELLING FEES INCREASE EXPLANATION 2023

According to a recent study, almost 60% of the items sold on Amazon come from third-party sellers. However, these same sellers will soon be facing increased costs for storing their items in Amazon Fulfillment Centers.

As of January 17, 2023, referral fees for sellers will remain unchanged. However, those who use Amazon’s FBA fulfillment service can expect to see significant increases in the new year. This is due to the new fee structure that will be implemented at that time.

* FBA outbound fee rates will increase by $0.22, on average.

* Peak monthly storage fees will rise by 20 cents per cubic foot for its non-sortable network. Off-peak storage will rise by between 3 – 4 cents per cubic fit.

* A new a storage utilization surcharge will apply to sellers who store a high cube of inventory relative to the cube of their recent weekly sales, effective April 1, 2023.

* Amazon will increase the surcharges applied to inventory stored between 271-365 days, effective April 15, 2023- Ardi Express team is offering extra discount for removal orders . 

* Amazon will introduce aged inventory surcharges on inventory stored between 180-270 days, excluding products in the following categories: Apparel, Shoes, Bags, Jewelry, and Watches, effective April 15, 2023.

As Amazon fulfillment centers begin to charge more for removing items, the cost of storing items will nearly double. For example, a 2-pound standard-sized item that currently costs $1.14 to remove from a fulfillment center will now cost $2.20. This change will take effect in January.

Apparel sellers got bad news – Amazon will apply dim-weight pricing in calculating shipping weight for large standard-size products beginning February 16, 2023. However, Amazon will reduce the returns processing fee rates for customer-returned products in the Apparel and Shoes categories by an average of $0.20 per return.

One bright spot: Amazon is expanding its Small and Light program (for new products that measure 18 x 14 x 8 inches or less and weigh 3 lb or less). Currently, the program is limited to items priced up to $10. On January 17, it will be open to items priced at up to $12. This will enable sellers to realize the program’s lower fees for more of their selection, Amazon said.

Amazon is also lowering fees for the US FBA New Selection program.

Amazon explained the reason for the changes to FBA fees: “This year, we saw some sellers use more of our storage than we expected or believe was needed to serve customers well, and that constrained how much product from other sellers could be sent into FBA.”

Sellers of collectibles will be affected by a change Amazon is making: the company is removing the fees for Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards. This could mean that sellers will have to find a new way to fulfill their products, or they may have to use FBA.

“Impacted ASINs will be re-categorized to their most suitable product category, which may result in different (some lower, some higher) fees for those re-categorized products.”

On the Amazon seller discussion boards, a seller asked what category would replace Collectible Coins. A moderator responded: “Effective January 17, 2023 Collectible coins will be mapped to Toys and Games. Your product’s fee category may not be the same as the category that appears on the Amazon retail site.”