FBA is free! Just now, Amazon officially announced...

FBA is free! Just now, Amazon officially announced...


With only 7 days left before the new year, Amazon has announced a series of new policies to be implemented in 2020.


Amazon will launch a new product selection plan


Recently, Amazon announced that it will launch a new product selection program- FBA New Selection program .

I believe many sellers are interested in the new product selection plan. Let me explain it in detail below.


What is the FBA new product selection plan?


It is reported that this program originated from a promotion launched by Amazon in March last year, providing free monthly storage and removal services for new Amazon ASINs. In view of the success of the promotion, Amazon is now creating a new enhanced program called the FBA New Selection program.


What are the benefits of participating in this program?


The FBA New Selection Program will be launched in the United States, Europe, and Japan on April 1, 2020. For new ASINs joining FBA, Amazon will provide free monthly storage , free delivery, and free FBA return processing for a limited time . At the same time, new FBA users will have the opportunity to receive a $100 discount on Amazon Partnered Carrier delivery .

It should be noted that:

The program is limited to parent ASINs that are new to FBA. A maximum of 500 ASINs can be created, but only the first 50 units of each eligible ASIN are eligible for fee waivers.


$100 shipping discount, only available to new FBA sellers.

Who can participate in the program?
Seller Qualifications


Must be a professional seller and meet the following criteria:

Sellers with an Inventory Performance Index (IPI) score of 400 or higher;

Sellers with no storage restrictions according to the FBA inventory storage restrictions policy.

ASIN Eligibility


Only Small Standard and Large Standard sized items can use this program;

The parent ASIN must be new to FBA;

ASINs in the Media category and used items are not eligible. The Media categories are Books, DVDs, Music, Software and Computer/Video Games, Videos, Video Game Consoles, and Video Game Accessories;

To qualify for free return processing, the ASIN must be in the Apparel; Shoes, Handbags & Accessories; Jewelry; Luggage; or “Watches” categories.

For new sellers, this new product plan is undoubtedly a good benefit, but old sellers should forget about it. Not only will there be no discount, but they will also have to pay more for FBA shipping.

Big Changes to Amazon FBA Fees


Recently, Amazon released a notice on "Changes in US Amazon FBA Fees and Sales Commissions", announcing that it will increase US FBA delivery fees and adjust sales commissions for some products .


According to the official notice, the fee changes this time generally include the following aspects:

1. Changes in FBA logistics and delivery costs

2. Changes in sales commission

3. Changes in monthly storage fees

4. Changes to removal and labeling fees

5. Changes to the cost of the light and small plan

Next, I will talk about the details of the changes in various fees.


1. FBA logistics and delivery fees have risen sharply


Let’s take a look at the specific fee change table:

 

 

It can be seen that FBA logistics costs have really increased . According to Amazon officials, the average FBA delivery fee has increased by 3% , but in actual calculation, the fee increase in several stages exceeded 8% , which is the most complained by sellers.


2. Sales commission adjustment


This time, Amazon adjusted the sales commissions of products in 5 categories:

【Shoes, Handbags, and Sunglasses】 : The sales commission for items with a total sales price of more than $75.00 is reduced to 15%

【Outdoor furniture】 : Reduced to 10% for total sales over $200

[Personal Care Products] : For products with a total sales price of less than $10, the discount is reduced to 8%

[Sportswear] : All sportswear will be subject to the sales commission of the "Apparel and Accessories" category, which is 17% .

[Ring Accessories] : Integrated into the "Amazon Device Accessories" category, with a sales commission of 45% .

 

After a thorough review, the only category that actually reduced the commission rate was "shoes, bags and sunglasses priced over $75", and it was only reduced by 3%. There was no substantial discount at all. No wonder it was complained about by sellers.


3. Changes in monthly storage fees


From January to September, the monthly inventory storage fee for standard-sized items will increase by $0.06 per cubic foot. This means that the increase in storage fees is close to 10% , which is not a small number.


4. Changes in labeling fees


On February 18, 2020, we will increase the fee for the optional FBA Label Service from $0.20 per unit to $0.30 per unit .


It just went up by $0.1, there's nothing much to say about it.


5. Removal Order Fee

Amazon will charge a per-unit removal fee based on weight. At first glance, it seems that the price has been reduced, but the fees for products weighing more than 2 pounds are higher . 2 pounds is just under 1 kilogram. As long as it exceeds 1 kilogram, a fee of 0.4+0.2*excess weight will be charged. The weight of many products is above this line. For these sellers, the disposal/removal fee is actually more expensive.


6. Changes to the fees for the Small and Light Commodity Program


It can be seen that after the change, a fixed tiered charging system is adopted, and it is difficult to tell whether the price has increased or decreased.


The FBA fee changes that will be implemented in February 2020 seem to have both increases and decreases, but a closer look reveals that most of them are price increases, especially for key fees, and the reductions are just insignificant amounts of money. My brother-in-law's wishful thinking is really smart.

FBA is getting more and more expensive. In 2020, perhaps only new FBA sellers will be able to enjoy certain discounts. It seems that old sellers can only focus on products and take the branding route!



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