The cost for sellers to store their goods in Amazon Fulfillment Centers will increase in January, even though almost 60% of Amazon sales come from third-party sellers.
On January 17, 2023, when new fees go into effect, all sellers will continue to pay referral fees (a portion of the purchase price, shipping costs, and any gift-wrapping costs).
However, in the coming year, FBA sellers on Amazon will experience some sizable hikes.
- Rates for FBA outbound fees will rise by an average of $0.22.
- Peak’s monthly storage costs for its non-sortable network will increase by 20 cents per cubic foot. The cost of off-peak storage will increase by 3 to 4 cents per cubic fit.
- Starting on April 1, 2023, sellers who store a lot of inventory compared to the cube of their most recent weekly sales will be subject to a new storage utilization surcharge.
- Starting on April 15, 2023, Amazon will raise the surcharges imposed on goods held for between 271 and 365 days.
- With effect from April 15, 2023, Amazon will impose aged inventory levies on inventory held for 180–270 days, excluding items from the following categories: apparel, shoes, bags, jewelry, and watches.
Not only will storage be more expensive, but Amazon will almost quadruple the price of taking things out of Amazon fulfillment centers. For instance, it presently costs $1.14 to retrieve a 2-pound standard-sized item from Amazon’s fulfillment center. It will cost $2.20 to remove or get rid of the item in January.
Amazon will start using dim-weight pricing to determine shipping weight for large standard-size products on February 16, 2023, which is bad news for clothing vendors. However, Amazon will lower the average return processing cost by $0.20 for products returned by customers in the Apparel and Shoe categories.
The expansion of Amazon’s Small and Light program is a plus (for new products that measure 18 x 14 x 8 inches or less and weigh 3 lb or less). The program is currently restricted to purchases of up to $10. It will accept items up to $12 in price starting on January 17. According to Amazon, this will allow merchants to take advantage of the program’s lower fees for a wider range of their products.
Additionally, Amazon is reducing the cost of the US FBA New Selection program.
The reason for the adjustments to the FBA fees was given by Amazon as follows: “This year, we observed some sellers using more of our storage than we anticipated or believed was necessary to serve customers well, which constrained the amount of product from other sellers that could be sent into FBA.”
Whether they use FBA or self-fulfill their orders, collectibles dealers will be impacted by the following change: Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards are the four charge categories that Amazon is doing rid of.
A seller on Amazon questioned what category will take the place of Collectible Coins on the seller message boards. In response, a moderator stated: “Collectible coins will be assigned to Toys and Games from January 17, 2023. The fee category for your goods might not match the category that is displayed on the Amazon retail site.