Amazon FBA Changes in 2024

Hey there! So, last year, Amazon had some big plans to make things faster and smoother for us customers. They wanted to get products to us quicker and make the whole buying process better. But here’s the thing – they needed help from sellers like you and me to make it happen.
Now, in 2024, Amazon is making some changes to how much it costs for sellers to use the FBA (Fulfilment by Amazon) service. You know, that’s where Amazon takes care of storing, packing, and shipping our products.

They have already started making some of these changes, and more will be happening over the next few months. If you are wondering why they’re doing this, it’s because Amazon wants to encourage sellers to get on board with their plans and make the whole delivery and customer experience even better.

So, if you’re selling stuff on Amazon, keep an eye on these changes. It’s all about making things work better for everyone – sellers and customers alike.

Explore our blog for more expert insights, strategies, and trends to keep your business ahead of the curve.

FBA Fulfilment Fee - A flat fee charged by Amazon for More Changes in 2024

More Size Tiers

Amazon is introducing more specific size tiers for standard-sized (SS) items. The oversize (OS) tiers are getting replaced with two new categories: Large Bulky and Extra-Large. This means there will be more size categories overall.

Lower Fees for Standard-Sized Items (SS)

If you sell standard-sized items, the good news is that the fulfilment fees are dropping. The rates now range from $3.06 to $6.92, plus an additional $0.08 for every 4 oz. over the first 3 lbs. For standard-sized apparel, the fees range from $3.27 to $6.92, plus $0.16 for every half-pound over the first 3 lbs.

Changes for Oversized Items

For items that were previously considered oversized, there are significant changes. Large Bulky items will have a fee of $9.61 for the first pound and an additional $0.83 for every pound after that. Small Oversize items under 50 lbs will benefit from a reduced fee, potentially as low as $2.12 per unit.

Reclassification for Heavy Small Oversize Items

Effective Dates

It’s essential to note that not all of these fee changes are immediate. Some rates will be lower starting from February 5th, while others will take effect on April 15th.

Low-Price FBA Fee Discount for SS Items

Sellers offering standard-sized items priced under $10 are in for some good news. Amazon is providing a discount of $0.77 on per-unit fulfilment fees for these lower-priced items. This can be a significant benefit, especially for items that are generally more affordable.

Ships in Product Packaging (SIPP) Program Discount

There’s an additional opportunity for sellers enrolled in the Ships in Product Packaging (SIPP) program. Starting from February 5th, eligible items in this program can enjoy a discount ranging from $0.04 to $1.32 on fulfilment fees. However, it’s important to note that this may require some adjustments to your packaging design, both flexible and rigid.

Overall Average Cost Rise Prediction

According to Amazon, most sellers are anticipated to experience an average cost increase of just $0.15 per unit in 2024. This prediction suggests that, on average, the impact on sellers might be relatively modest.

Potential Impact on Sellers with Bulky Items

While these changes seem favourable for standard-sized and lower-priced items, sellers dealing with bulkier items may face challenges. The recalibrated fee structure, especially for Large Bulky and Extra-Large items, might lead to higher fulfilment costs. This, in turn, could affect the profits of sellers dealing with more substantial or heavier products.

Possible Deterrence for Sellers with Bulky Items:

The increased fees for larger items could potentially deter sellers from offering bulky products on Amazon in 2024. The higher costs may make it less attractive for some sellers to continue or start selling these items on the platform.

New Inbound Placement Fee Explained: Getting Closer to Customers

Amazon has a plan to make sure your stuff gets to customers faster by having it in more fulfilment centres. But, there’s a new fee for this, starting March 1, 2024 – the Inbound Placement Service Fee.

For Standard-Sized Products:

Premium Service: If you’re sending standard-sized items to just one location, Amazon will charge you an extra fee, ranging from $0.21 to $0.68.

Discounted Service: Good news, though! If you’re sending to multiple locations or in multiple shipments, you get discounts on these fees.

Size	Weight	FBA Inbound Placement Services
		Premium service	Discounted service
		Send to a single location	Send to multiple locations
Small standard Max 15x12x0.75 inches	16 oz or less	$0.21-$0.30	Receive a discount of up to 100% based on the number of shipments and inbound locations
Large standard Max 18x14x8 inches	12 oz or less	$0.23-$0.34
	12+ oz to 1.5 lb	$0.27-$0.41
	1.5+ lb to 3 lb	$0.32-$0.49
	3+ lb to 20 lb	$0.42-$0.68

Source: Adapted from Seller Central – “FBA inbound placement service fee,” Jan 24, 2024.

For Large Bulky Sized Products

Premium Service: If you’re dealing with bigger items, like Large Bulky ones, sending to a single location will have an additional fee, ranging from $2.16 to $6.

Discounted Service: Again, if you’re shipping to multiple places, discounts are available.

When Will You Be Charged?

Your first charge will happen on April 15, 2024, unless you use AWD or you ship Large Bulky items through AGL. If you want more details about your shipping choices, you can check out the official Supply Chain page.

Product size tier	Weight	Inbound defect fees amount
Product size tier	Weight	Shipments delivered to the wrong location	Deleted and abandoned shipments
Small standard Max 15 x 12 x 0.75 inches	16 oz or less	$0.04	$0.02
Large standard Max 18 x 14 x 8 inches	12 or less oz	$0.04	$0.02
	12+ oz to 1.5 lb	$0.05	$0.02
	1.5+ lb to 3 lb	$0.06	$0.03
	3+ lb to 20 lb	$0.07	$0.04

Source: Adapted from Seller Central – “Inbound defect fees,” Jan 24, 2024.

Amazon wants to make deliveries faster, but it comes with a small cost for sellers, depending on what and how you’re shipping. Make sure to check out your options to manage these new fees wisely.

Inventory Management Incentive: Selling Smarter on Amazon

Amazon wants more of the good stuff that sells and less of the stuff that doesn’t. So, starting April 1, they’re doing two things: making storage cheaper and giving a little nudge to sellers who need to restock.

Cheaper Storage for Standard-Sized (SS) Items

Good news for sellers with standard-sized items! The monthly storage fees are going down from $0.87 per cubic foot to $0.78 per cubic foot. That’s a win for keeping your products in Amazon’s warehouses.

024 size tier	Shipping weight	Low-inventory-level fee
024 size tier	Shipping weight	0-14 historical days of supply	14-21 historical days of supply	21-28 historical days of supply
Small standard	Up to 16 oz	$0.89	$0.63	$0.32
Large standard	Up to 3 lb	$0.97	$0.70	$0.36
Large standard	3+lb to 20 lb	$1.11	$0.87	$0.47

Source: Adapted from Seller Central – Jan 24, 2024.

Penalty for Consistently Low Inventory
But, there’s a catch. If you have high demand for your products and you keep running low on stock, there’s a new fee. This fee will range from $0.32 to $1.1, depending on the situation. It’s a bit like a reminder to keep those shelves stocked.

Fee Waiver for Auto-Replenishment with AWD
If you’ve got your inventory on auto-replenishment with Amazon’s Auto-Ordering (AWD), there’s a chance you might get a pass on these fees. It could be a little incentive to make your inventory management easier.

Amazon is trying to help sellers by making storage a bit cheaper, but they’re also encouraging everyone to keep products in stock. If you’re on auto-replenishment, you might catch a break on these new fees. So, it’s like a win-win if you play your inventory cards right!

Explore our blog for more expert insights, strategies, and trends to keep your business ahead of the curve.

Changes in FBA Processing Fees: Watch Out for Costs

FBA (Fulfilment by Amazon) sellers need to be aware of some fee adjustments that might affect their pockets. Here’s a breakdown of what’s changing:

Removal and Disposal Fees

Starting now, sellers will see higher rates for removal and disposal. The fees kick off at $1.04 per unit, up from $0.97.
For larger or heavier items, the rates can go up to $14.32 plus an extra $1.06 per pound over the first 10 pounds. This means an increase of $1.27.

Liquidation Charges

Liquidation charges stay the same, but they’re not something to overlook. Sellers face a 15% liquidation referral fee on the gross recovery value.
Additionally, there’s a processing fee ranging from $0.25 to $1.9, plus $0.2 for every pound over the initial 10 pounds.

FBA Prep Fees for Standard-Sized (SS) Items

Some changes are coming to prep fees. Bubble-wrapping, for example, will cost $1.04 per unit starting February 5, 2024, up from $0.8.
However, other prep services like bagging, opaque bagging, and labelling will maintain their current rates ($0.7, $1, and $0.55, respectively).

Returns Processing Fees

For Apparel and Shoes, sellers will face a per-unit returns processing fee of $1.65 or above starting February 5, 2024.
For other categories, return fees kick in for units exceeding the threshold starting June 1, 2024, with rates beginning at $1.78 for SS items.

Return Fees for Large Bulky and Extra-Large Items

Return fees for these items vary from $6.74 to $157.35 for the first 150 lbs, plus $0.19 per pound thereafter. Fortunately, items with fewer than 25 units shipped per month are exempt.

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Tracking Return Thresholds

Sellers can keep an eye on their return thresholds by checking the FBA Returns dashboard starting May 1, 2024. This will provide monthly return rates and per-category thresholds.
In summary, sellers should be cautious of these adjustments, especially in removal and disposal fees and prep services. Keeping an eye on return thresholds can also help manage potential additional costs.

Tracking Return Thresholds

Exciting New Benefits for Amazon Sellers: More Perks, More Savings

Amazon’s new seller fee strategy isn’t just about changes in fees; it also brings some cool perks for sellers who bring fresh ideas. Here’s the scoop:

FBA New Selection 10% Rebate – Starting March 1, 2024, the FBA New Selection 10% rebate isn’t just for branded items. Non-branded items, including oversized products, are now eligible for this rebate.

Benefits for Items in the FBA New Selection Program-

If your items are in the FBA New Selection program, you get some cool advantages:
Your IPI score requirement drops from 400 to 300.
A 25% discount on the Vine reviewer program fees for 3-10 parent ASIN units enrolled.
A waiver on the return processing fee for up to 20 units of non-apparel and non-shoe parent ASINs starting June 1.

Reduced Referral Fees for Apparel Sellers – Good news for apparel sellers! Starting January 15, 2024, referral fees for apparel priced under $15 drop from 17% to 5%. For items priced between $15 and $20, the referral fee decreases to 10%.

Amazon Vine Reviewer Program Access-

Small sellers, rejoice! Amazon Vine, the reviewer program, is now open to you.
If you have 1-2 units enrolled after October 19, 2023, there’s no charge for Vine reviews.
For 3-10 units enrolled, the fee is reduced to $75 per country, down from the usual $200 enrolment fee.

In summary, Amazon is offering more incentives for sellers who bring unique items to the platform. From reduced referral fees to access to exclusive programs like Amazon Vine, it’s a win-win for those bringing innovation and variety to the table.

Stay Tuned for More Fee Updates on Amazon: Changes on the Horizon

Hold on tight, Amazon sellers! There’s more to come in the world of FBA fees. Amazon has teased updates for inbound defects, aged inventory, storage surcharge, and even the FBA Manual Processing fee.

A Glimpse at FBA Manual Processing Fee-
Currently set at $0.3/$0.15 per unit for shipments missing box information, this fee is already quite hefty. As Amazon’s new seller fee strategy unfolds, it’s crucial for sellers to keep an eye out for these changes. Adaptability is the name of the game. Sellers need to rethink their strategies to boost efficiency and cut costs in light of these upcoming alterations.
To stay in the loop and make the most of all the tips, perks, and incentives Amazon has to offer in 2024, just follow our blog. We’re here to make selling on Amazon a breeze!

Changes to Amazon FBA Removal, Disposal, and Liquidation Fees: What You Need to Know

Starting February 5, 2024, Amazon is making adjustments to its removal and disposal order fees. It’s important to note that if you place removal or disposal orders before this date, the new fees won’t apply to those orders. these changes reflect the updated removal and disposal fees for different size tiers. If you have orders placed before February 5, 2024, you won’t be affected by these adjustments. It’s essential to be aware of these modifications to plan and manage your FBA fees accordingly.

Amazon Returns Processing Fee Updates: Be Aware of the Changes

Starting June 1, 2024, Amazon is introducing a returns processing fee for high-return rate products across all categories (excluding apparel and shoes). This update is designed to address operational costs and minimize waste.
These changes aim to ensure that operational costs related to returns are accounted for, and they provide a clear breakdown based on the size and weight of the returned items. Sellers should take note of these adjustments to manage their costs effectively. In summary, these changes reflect the updated removal and disposal fees for different size tiers. If you have orders placed before February 5, 2024, you won’t be affected by these adjustments. It’s essential to be aware of these modifications to plan and manage your FBA fees accordingly.

Conclusion: Navigating Amazon's Evolution in 2024

In the ever-evolving world of Amazon, 2024 brings a wave of changes, especially for sellers using FBA services. From tweaked fees to new incentives, the landscape is shifting. For standard-sized items, it seems like a win. Lower FBA fulfilment fees and enticing discounts for low-priced items could mean more gains for sellers. Yet, the story is different for bulkier items, facing increased fees that might pinch profits. But there’s a silver lining. Sellers with innovative products can reap rewards. The FBA new selection program, reduced referral fees for apparel, and even access to the Amazon Vine reviewer program open up exciting opportunities. As we move forward, it’s crucial for sellers to stay informed. The upcoming changes in inbound defects, aged inventory, and storage surcharge, along with the looming FBA manual processing fee, demand attention. Adapting strategies and staying agile will be key.

In the grand scheme, Amazon’s goal seems clear – efficiency, customer experience, and sustainability. For sellers, it’s about riding the wave of change, making informed decisions, and finding new avenues for success in the evolving Amazon landscape of 2024.

As Amazon continues to shape its FBA strategy in 2024, sellers are urged to embrace the changes strategically. The landscape Favors those who can align with Amazon’s goals of efficiency and customer satisfaction. While some fees have nudged upward, sellers can mitigate impacts by tapping into discounts and
incentives designed to reward innovation. It’s not just about adjusting to the new fee structures; it’s about understanding the nuances. The details matter, from changes in FBA Fulfilment Fees for different-sized items to upcoming alterations in inbound defects and storage surcharge. Sellers who proactively grasp these intricacies are better positioned for success.

The evolving Amazon ecosystem is not just about fees and logistics; it’s a reflection of a commitment to sustainability. The push for reducing waste through the Returns Processing Fee underscores a broader commitment to responsible business practices. Sellers who align their strategies with these principles can not only navigate the changes but also contribute to a more sustainable marketplace. In essence, the Amazon FBA changes in 2024 present challenges, but also opportunities. Sellers who stay informed, adapt swiftly, and leverage the incentives provided will find themselves not just navigating change but thriving in an ever-evolving e-commerce landscape.

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