Announcement! Amazon's fees have increased

Announcement! Amazon's fees have increased

The first-leg freight has increased, the product procurement cost has increased, the company's labor costs have increased, and the product promotion costs have increased, but the most important thing for sellers - the product price, has never increased!


Even though the living environment of sellers is already very difficult, Amazon has never stopped swinging its scythe at sellers. Starting from January 18, 2022, six fees will change (in simple terms, the price will increase...)



1. Changes in Amazon Logistics Delivery Fees


Amazon Fulfillment Fees are calculated and charged when the shipment leaves an Amazon fulfillment center. If the product is shipped on or after January 18, 2022, Amazon will charge the new Amazon Fulfillment Fees.

Growth rate: 3%-8%


2. Amazon Logistics Monthly Storage Fee and Overage Inventory Surcharge


Beginning February 1, 2022, during the non-peak selling season (January to September), monthly inventory storage fees will increase by $0.08 per cubic foot for standard-size items and $0.05 per cubic foot for oversized items.

Starting May 15, 2022, Amazon will charge an overage inventory surcharge for products that have been stored in the fulfillment center for 271 to 365 days. Sellers are advised to be cautious, cautious, and cautious in selecting products!



3. Changes to Amazon Sales Commission


Starting January 18, 2022, Amazon will reduce its referral fee for lawn mowers and snow blowers from 15% to 8% for products with a total sales price of more than $500.


4. Changes to Amazon Logistics Removal and Abandonment Order Fees


The increase in removal and disposal fees is outrageous! Large items between 1 pound and 2 pounds have increased from $0.72 to $1.96, a 170% increase. Large items under 1 pound have increased from $0.6 to $1.5, a 150% increase...


If you rashly ship to FBA without doing sufficient product and category research, and your goods become unsalable inventory in the future, even if you want to "throw it away", you will pay a higher cost than before.



FBA removal and disposal fees are calculated at the time of order placement and are charged when the shipment leaves an Amazon fulfillment center. Requests submitted before January 18, 2022, but inventory removed or disposed of on or after this date will not be charged the new FBA fees.



V. Changes to Amazon Logistics Small and Light Program Fees

The weight limit for the FBA Small and Light program has increased from 12 ounces to 3 pounds. For all large standard-size units, we will use the greater of the product weight or dimensional weight to determine the shipping weight. For small standard-size units, we will use the product weight.



VI. Changes in Amazon Logistics Pre-processing and Labeling Service Fees


Labeling and polybagging charges will increase for standard-size and oversized items, as shown in the table below.

The packaging service fee (where applicable) for standard-sized items will increase from $0.20 to $0.60, and the packaging service fee for oversized items will increase from $0.40 to $1.20.



Amazon said that due to peak shopping demand, supply chain bottlenecks and labor shortages during the epidemic, Amazon opened more than 350 new operation centers, sorting centers, regional air hubs and delivery stations in the United States, incurring billions of dollars in costs during this period, and its own operating costs have been increasing. Therefore, Amazon has to adjust its cost structure accordingly.



TIPS:

Sellers who use disposable packaging should be aware! When products are opened and returned by buyers, they may become "unsellable products".

Therefore, for products with high return rates, try not to choose disposable packaging such as "plastic sealing" or "heat shrink film" when designing the packaging. Try to use packaging designs that can be closed repeatedly. This will also reduce the chances of your product becoming unsaleable.


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