Amazon has made multiple fee adjustments!

In April, Amazon will adjust its fees again.

Low inventory fees, storage utilization surcharges, off-season monthly storage fees for standard-sized items, FBA delivery fees…

The large and small charges made the sellers start to laugh at themselves:

You have to pay a configuration fee for shipping, a storage fee for storing the goods in the warehouse, a storage fee if you sell slowly, and a low inventory fee if you sell quickly...Now, people are almost useless.

On April 1, the low inventory level fee officially took effect

According to Amazon's announcement, starting April 1, 2024, Amazon will charge a low inventory level fee for standard-size products whose inventory levels are consistently lower than buyer demand.

Specifically, when a product’s long-term historical supply days in the past 90 days and its short-term historical supply days in the past 30 days are both less than 28 days (i.e., 4 weeks), the platform charges a low inventory level fee for the product.

This fee is charged per unit shipped, with tiered rates based on size and historical days of supply for standard-sized units.

- Small standard size items cost between $0.32-$0.89;

- Large standard-size items (up to 3 pounds) will cost between $0.36 and $0.97;

- Large standard-size items (3-20 lbs) will cost between $0.47-$1.11.

It is worth mentioning that if the seller’s inventory level is always too low relative to product sales, it will hinder Amazon from allocating products to the distribution network to a certain extent, reducing delivery speed and increasing delivery costs.

Some sellers said: Isn’t this low inventory fee very unfriendly to seasonal products? What should I do if I only sell products for 1-2 months?

Amazon used winter boots as an example to illustrate this. Winter boots have the highest sales in December and January, and then sales gradually decline in February and March. If the performance of the product in the past 90 days is considered, the historical supply days of the product before and during the holiday season months are more than 28 days; in mid-February, due to low inventory levels, the historical supply days of the product will be less than 28 days. In this case, assuming that the seller sells 730 items per year, 44 of which incur low inventory level fees, which is equivalent to 6.0% of the number of items sold, the estimated fees total $20.26.

How to avoid low inventory level fees

According to the new rules: "Low inventory level fees will only be charged if the long-term historical supply days (past 90 days) and short-term historical supply days (past 30 days) of the product are both less than 28 days."

Therefore, sellers need to ensure that at least one of the supply days (long or short) is more than 28 days to avoid paying this fee.

The low inventory fee will also be waived if the seller meets the following conditions:

Several fees will be adjusted soon

This year's fee adjustment is not over yet. There are still several fees that will be adjusted.

Starting from April 1, Amazon introduced a more detailed fee segmentation for the storage utilization surcharge and began to charge this fee to professional sellers with storage utilization exceeding 22 weeks.

In other words, sellers using professional accounts and with a storage utilization rate of more than 22 weeks are required to pay a storage utilization surcharge, while inventory with an age of 0-30 days does not need to pay a surcharge.

Starting April 15, Amazon Fulfillment Fees will be reduced for standard-size and large-size oversized items.

Comparing the fees before and after the adjustment, the average price of standard-sized items will be reduced by $0.20 per item, and the average price of non-standard-sized items will be reduced by $0.61 per item.

Starting June 1, Amazon will expand the scope of return processing fees to include high-return rate products in all categories (except clothing and footwear). For products delivered in a given month, the platform will charge a fee for each returned item that exceeds the return rate threshold. The specific standards have not yet been announced.

Since entering 2024, with the increase in Amazon project fees, many sellers have clearly felt that it is difficult to make money, and profits are shrinking bit by bit. Are you quietly adjusting your annual plans? Welcome to discuss in the comment area.