FBA Fee Change 2024

Attention Sellers: Amazon Streamlines Fulfillment with New Size Categories

Exciting news for Amazon sellers! The eCommerce giant is implementing a revamped size tier system for products, bringing greater precision and efficiency to the fulfillment process.

What’s Changing?

Under the new system, small standard-size items will be tiered at 2-ounce intervals, ensuring precise classification. Meanwhile, large standard-size items weighing over 1 pound will be tiered at 4-ounce intervals, allowing for better differentiation.

Gone are the days of the broad “Oversized” category. Amazon is introducing two new tiers:

  • Large Bulky: This category will accommodate products that are larger in size but may not necessarily be particularly heavy.
  • Extra-Large: This tier will encompass items with significant dimensions and weight.

Benefits for Sellers:

  • Accurate Product Classification: The new system ensures your products are categorized based on both size and weight, leading to more precise fulfillment fees and potentially lower costs for some items.
  • Enhanced Efficiency: Clearer size classifications will streamline the fulfillment process, potentially reducing processing times and delays.
  • Consistency Across Services: The new tiers apply to both standard and remote fulfillment, offering a unified system for managing your inventory across all Amazon services.

Benefits for Customers:

  • Improved Search Results: More accurate product categorization can lead to better search results, allowing customers to find the items they need faster and easier.

Transparent Shipping Costs: Precise size classification may translate to a fairer and more predictable shipping cost structure for customers.

Apparel Referral Fees Changes For items ≦ $20 (Effective January 15, 2024)

Simpler Breakdown:

We’re making some changes to our referral fee structure for clothing! Here’s the quick guide:

  • Clothing under $15: Referral fee goes from 17% to 5%.
  • Clothing between $15-$20: Referral fee goes from 17% to 10%.
  • Clothing over $20: Referral fee stays at 17%.

2. Emphasize High-Value Referrals:

Great news for our referrers! We’re rewarding you even more for recommending our amazing clothes, especially for higher-priced items. Our referral fee remains 17% for all clothing priced above $20!

3. Highlight Changes for Lower-Priced Items:

Heads up, referrers! To ensure a fair system, we’re adjusting referral fees for clothing under $20. It’ll now be 5% for items below $15 and 10% for those between $15-$20. The 17% fee still applies to clothing priced over $20.

4. Combine Options:

We’re refining our referral fee structure for clothing! Here’s the breakdown:

  • To streamline rewards, referral fees for items under $15 will decrease to 5%.
  • For clothing between $15 and $20, the fee will be adjusted to 10%.
  • The good news? The 17% referral fee remains unchanged for all clothing priced above $20!

Inbound: The term “inbound” in Amazon refers to the products that come into the fulfillment center

These changes are listed below in chronological order of their implementation dates.

Implementation DateChanges
From Jan 15, 2024– Application of inbound placement service fees for standard and large-volume products
– Application of inbound defect fees
From Feb 5, 2024– Decrease in selling fee for apparel prices under $20
From Feb 15, 2024– Increase of additional fees for aged inventory among storage inventory between 271 and 365 days
From Mar 1, 2024– Imposing low-inventory-level fees
– Decrease of $0.09 per ft3 regarding monthly storage fee of off-peak standard-size products
From Apr 1, 2024– Imposing low-inventory-level fees
– Decrease of $0.09 per ft3 regarding monthly storage fee of off-peak standard-size products
From Apr 15, 2024– Some changes in the FBA Order Processing fee ratio
From Jun 1, 2024– Application of returns processing fees for products with high returns rates excluding apparel and shoes
Now, let’s take a closer look at the major changes and explore what Amazon sellers can do to minimize costs resulting from these changes.

Reference link: Amazon Fee 2024

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