Amazon’s FBA Policy Updates: What Sellers Need to Know
Amazon has announced several significant changes to its Fulfillment by Amazon (FBA) program in 2024 that will impact sellers' fees, inventory management, and fulfillment options. Here’s a breakdown of the key updates:
1. Fee Adjustments
Lower FBA Fulfillment Fees: Standard-sized products will see an average fee reduction of $0.20 per unit, while large bulky-sized products will see a decrease of $0.61 per unit starting April 15, 2024.
Ships in Product Packaging (SIPP) Discounts: Sellers who opt for the SIPP program can receive fulfillment fee discounts ranging from $0.04 to $1.32 per unit (effective February 5, 2024).
New Low-Inventory-Level Fee: If sellers maintain low stock relative to sales, they will face additional fees, starting April 1, 2024. However, maintaining at least four weeks of inventory can help avoid this charge.
2. Storage Fees & Incentives
Reduced Non-Peak Storage Fees: Monthly storage fees for standard-size products will decrease by an average of $0.09 per cubic foot from January through September. However, peak season storage fees will remain unchanged.
Increased Disposal & Aged Inventory Fees: To encourage sellers to manage slow-moving stock, Amazon is raising fees for removing or disposing of aged inventory.
3. Referral Fee Updates
Lower Fees for Apparel: Referral fees for clothing items priced below $20 will decrease significantly. Items under $15 will see a fee reduction from 17% to 5%, while those priced between $15 and $20 will drop to 10% (effective January 15, 2024).
4. Expanded Return Processing Fees
High-Return-Rate Products: Starting June 1, 2024, a new returns processing fee will apply to products with high return rates across all categories, excluding apparel and shoes. This change aims to offset the costs of handling frequent returns.
5. Updates to Supply Chain by Amazon
Amazon is introducing updated rates and discounts for services like Amazon Global Logistics, the Partnered Carrier Program, and Amazon Warehousing & Distribution. Additionally, auto-replenished products will receive new discounts.
6. Seller Reactions
Many sellers have expressed frustration over these changes, particularly regarding increased fees for envelope-sized items and returns processing. Some argue that these changes make it harder for small businesses to remain profitable, especially those selling low-cost or lightweight itemssellercentral.amazon.
For full details, check Amazon’s official 2024 FBA Fee Changes page. If you’re an FBA seller, now is the time to review your inventory strategies, pricing, and fulfillment methods to stay competitive under these new policies sellercentral.amazon.