Inventory | What changes have occurred in Amazon FBA fees in 2020?

Every February, Amazon adjusts its FBA fees and publicly informs sellers in advance. In 2020, the biggest change was in Amazon's storage fees, which increased by 8.7% for standard-size items from January to September.

What are the other changes? Here is my summary of the changes in Amazon FBA fees:

1. Changes to FBA logistics and delivery fees - standard size products

On average, standard-size items increased by 3.6%, with small standard-size items (10 to 16 ounces) experiencing the largest increase, up 5.7%.

Previously, Amazon implemented new size classifications for standard-sized items, dividing items under 1 pound into two different categories.

2. Changes in FBA logistics and distribution fees - large item fees

Medium-sized and oversized items will be charged an additional 14.7%. Medium-sized and oversized items are products that weigh less than 150 pounds after packaging, and are less than 108 inches on the longest side and less than 130 inches on the longest side.

3. Monthly storage fees increase

Storage fees will increase significantly in 2020. During the off-peak period (January to September), the monthly storage fee for standard-sized goods will increase by $0.06, an increase of 8.7%. During the peak period (October to December), the previous rate will still be applied.

The cost of oversized products remains the same.

4. Rising Exit Fees

In most cases, if you are removing anything over 2 pounds, then there will be a 50% increase in removal fees.

If you remove large items, the removal fee will increase for items over 1 pound, especially for oversized items over 10 pounds, the removal fee will increase by more than 650%.

5. Other changes

Amazon has also made a few other miscellaneous changes that are unlikely to affect the vast majority of sellers but may affect sellers in specific niches:

The Small and Light program is moving to a purely weight-based classification. Order handling fees, pick and pack fees, and first and additional weight fees will be combined into one delivery fee.

For outdoor furniture with a total sales price of more than $200, the referral fee percentage will be reduced from 15% to 10% (US site).

For personal care products with a total sales price of $10 or less, the referral fee percentage will be reduced from 15% to 8% (US site).

For shoes, handbags, and sunglasses with a total sales price of more than $75, the referral fee percentage will be reduced from 18% to 15% (US site).

In the outdoor furniture category in particular, the drop in commissions could indicate a lack of competition in this market, which could be a good opportunity for sellers.

6. Amazon’s historical growth from 2014 to 2020

From the figure below, you can see the growth and decline trend of Amazon FBA fees in the past few years.

The chart below shows the historical growth changes of large items.

What should sellers do in this regard?

Profits will be reduced by the increase of these costs, especially in storage fees. Sellers can store inventory more flexibly or increase prices appropriately;
Placed a planned removal order before February 18, 2020;
If your products are standard-sized or medium-large items weighing 10oz-16oz, be prepared for a sizeable FBA fee increase.

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