Good news! Amazon launches new plan, FBA fee is waived!

Good news! Amazon launches new plan, FBA fee is waived!



Recently, Amazon released a notice on the background about "Changes in Amazon's US logistics fees and sales commissions", the content mainly involves: Changes in US sales commissions in 2020; Changes in US delivery fees in 2020; Changes in Amazon Logistics monthly warehousing, labeling services and removal order fees in 2020; Changes in Amazon Logistics Small and Light Commodity Program fees in 2020.


These changes will take effect on February 18, 2020 , unless otherwise stated.

 

According to an official statement, this year, Amazon has invested more than $15 billion to improve infrastructure, service plans and staffing, and launched more than 150 new tools and services to help sellers better develop their brands and businesses. It has also invested billions of dollars to expand the free next-day delivery service to more than 10 million Prime-qualified products.


This is the largest annual investment in Amazon Logistics ever.


That’s right, in 2020, Amazon will only increase its shipping fees slightly, about 3%, which remains below the industry average. At the same time, Amazon will also reduce some sales commissions and launch an exciting new product selection program.


Pepe looked around and concluded that Amazon had invested too much money in logistics, so it would have to slightly increase the delivery fee. Fortunately, the sales commission for some categories was reduced!



I believe that many sellers, like Pepe, are more concerned about the new product selection plan, so let’s talk about the product selection plan first.


FBA New Selection program


It is understood that this plan originated from a previous plan launched by Amazon that provided free monthly storage and removal services for new Amazon ASINs, but the activity was restricted at the time. This time it is an enhanced version of the last one, called the FBA New Selection program.


Starting April 1, 2020, participants in the FBA New Select Program are eligible for free monthly storage, free removals, and free return processing for eligible new FBA ASINs. In addition, newcomers to FBA have the opportunity to receive a $100 discount on Amazon Partnered Carrier shipping.


 

So this plan is really good for new ASINs! The conditions for participation are also much more relaxed this time:


Seller Qualifications


Must be a professional seller and meet the following criteria:

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

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


ASIN Eligibility


1. Only small standard and large standard size projects can use this program;

2. The parent ASIN must be new to FBA;

3. 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;

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


NOTE: The program begins on April 1, 2020 and sellers must enroll in the program before the date an ASIN first receives inventory at an Amazon fulfillment center in order for the ASIN to be eligible for the monthly storage, handling, and return processing fee waiver.


Details of the program are as follows:

 

Pepe reminds everyone:


1. This program is limited to parent ASINs newly added to FBA. A maximum of 500 ASINs can be created, but only the first 50 units of each qualified ASIN are eligible for fee reductions;


2. The $100 shipping discount is only available to new FBA sellers. This means that only sellers who have not used FBA services before are eligible, similar to the $50 fee reduction Amazon provides to sellers who have just started advertising services.


Sales Commission Changes


The sales commissions for the following categories of products will be adjusted:


Shoes, Handbags and Sunglasses


Effective February 18, 2020, the referral fee percentage for products in the Shoes, Handbags, and Sunglasses category with a total sales price of more than $75.00 will be reduced from 18% to 15%.


Outdoor furniture


Effective February 18, 2020, Outdoor Furniture products will be consolidated into the Furniture category and as a result the referral fee percentage will be reduced from 15% to 10% on the portion of the total sales price over $200.00.


Personal Care Products


Effective February 18, 2020, Personal Care Products will be consolidated into the Personal Care & Health category, so the referral fee percentage will be reduced from 15% to 8% for Personal Care Products with a total sales price of $10.00 or less. For items in this category with a total sales price of more than $10.00, the referral fee percentage will remain at 15%.


Sportswear


Effective February 18, 2020, all athletic apparel will be subject to the Apparel & Accessories category’s referral fee percentage of 17%.


Ring Accessories


Starting February 18, 2010, Ring accessories will be integrated into the "Amazon Device Accessories" category, which will have a sales commission percentage of 45%.


Changes in logistics and delivery costs


1. Changes to core Amazon Logistics fulfillment fees (except for "Apparel" products)


 

Note: Lithium batteries and products containing or sold with lithium batteries will be subject to an additional shipping fee of $0.11 per item.


2. Changes to Amazon logistics delivery fees for "Apparel" products:


 

There are many expenses involved in 2020. Pepe focused on introducing the new FBA product selection plan, sales commission changes and logistics and distribution fee changes that everyone is more concerned about. For the remaining change plans, sellers can search in the background for " 2019 US Sales Commission and Amazon Logistics Fee Changes List " for details.


Although the commissions of some categories have decreased in this fee change, the overall sales costs of sellers have increased significantly as delivery costs, storage costs, removal costs, etc. have increased. Cost increases are an inevitable trend, which requires sellers to operate more refinedly and reasonably control costs in the future in order to better adapt to competition!



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