Attention all Amazon sellers! Amazon's supply chain services will undergo a wave of adjustments in 2025, and many fee changes have been finalized.

Whether it is BWP, multi-channel fulfillment (MCF), or warehousing and distribution services (AWD), they will have a direct impact on costs.

Although it seems to be a small increase, the impact behind it cannot be underestimated!

Today, we’re going to break down these fee updates to help you find ways to cope with rising costs and protect your bottom line.

What are the changes to Amazon fees?

Buy with Prime fee optimization

Effective date: January 15, 2025

Details of changes:

Prime service fees remain unchanged;

Fees for some large standard-sized items have been reduced;

We continue to provide 1-2 day delivery service, with rates consistent with the industry's 3-5 day delivery standard.

Peak Holiday Fulfillment Costs

Time frame: October 15, 2024 - January 14, 2025

Additional logistics fees will be charged during peak periods to accommodate changes in demand during peak seasons.

Multi-Channel Fulfillment (MCF) Fee Adjustments

Effective date: January 15, 2025

Details of changes:

Average fees increased by 3.5% (lower than the industry average of 5.9%);

The standard delivery fee for items under 1 pound remains unchanged;

Fees for items over 1 pound increase based on weight and size.

Multi-Channel Distribution (MCD) Outbound Shipping Fee Update

Effective date: April 1, 2025

Details of changes:

Outbound transportation costs will change from a fixed fee to a fee calculated based on transportation distance;

Short distances cost less, long distances cost more.

Amazon Warehousing and Distribution Services (AWD) Adjustments

New Regulation Highlights :

The consolidated rate is an “administrative rate”, which removes some of the processing fee discounts;

Optimize storage and transportation rates and provide discounts based on inventory replenishment;

The warehousing and outbound fees are uniformly adjusted to US$1.35 per box.

Supply Chain Management Service Upgrade

Sellers who choose Amazon's supply chain intelligent hosting service will enjoy warehousing and transportation discounts (up to 20%)

1. Pressure of rising costs

Especially for goods weighing more than 1 pound, logistics costs may increase significantly, and sellers need to adjust their pricing strategies to cope with the increased fulfillment costs.

2. Inventory management becomes more important

AWD fee adjustments provide new discount opportunities, but inventory optimization is key to avoid additional costs due to excess inventory.

3. Intensified market competition

As the overall environment changes, sellers need to improve operational efficiency to reduce costs and maintain price advantages.

How to deal with these changes?

Lighten your products and packaging to under 1 pound and reduce fulfillment fees.

Plan your packaging size appropriately to avoid extra costs.

2. Intelligent inventory optimization

Use AWD’s auto-replenishment feature to enjoy lower rates;

Avoid inventory expiration or backlog and reduce storage cost pressure.

3. Focus on short-distance logistics

By utilizing the new rate rules for multi-channel distribution, short-distance transportation is given priority to save logistics costs.

4. Consolidate orders to reduce fulfillment costs

Bundle multiple items into a single order to maximize the benefits of BWP fee reduction.

5. Adjust pricing to prepare for the impact

Review platform prices based on new fee standards and product costs to ensure profit margins are not significantly cut.

6. Focus on long-distance transport alternatives

For heavyweight goods, explore LTL/TL transportation mode to reduce the unit cost of long-distance delivery.

The changes in Amazon fees are a double-edged sword. Although they increase some logistics costs, they also provide sellers with opportunities to optimize services and cost management.

The new regulations in 2025 will undoubtedly bring more challenges to sellers’ operations, but advance planning and refined operations are still the key to maintaining market share!

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