On February 22, Fulfillment By Amazon fees change. Not only do fees change, the fee structure itself changes from a date-sensitive model offering small Q4 discounts - to a year-round structure with no variations to accommodate the holidays. 
 
US FBA rate changes are nothing new and Amazon rolls them out annually, adjusting fees to reflect the changing costs of fulfillment, transportation, and customer service.  Here’s what you need to know about the 2018 FBA US rate changes.

FBA Changes

Program Changes

  • The adjusted fees apply throughout the entire year. There will no longer be separate slightly discounted rates for October through December.
  • With the exceptions of small standard, large oversize, and special oversize items previously fulfilled by Amazon during January through September, most tier rates have increased by under $1 each. However, the small oversize category of items is hardest hit with a rate increase exceeding $1.25 per item.
  • Dimensional weight calculations have changed. Effective February 22, 2018, dimensional weight as the unit volume (length x width x height in inches) will be divided by 139 (instead of 166 as it has been previously). Dimensional weight is only applicable for oversize items and large standard items weighing more than 1 lb. Dimensional weight is also used to calculate fees for Multi-Channel Fulfillment and the Inventory Placement Service.

 

What’s Staying the Same

  • FBA inventory storage fees are not changing at this time. Remember that long-term storage fees come twice a year (February and August) and February 15th is right around the corner. It is definitely not too early to be reducing inventory and thinking about strategies to beat Amazon long-term storage fees.
  • The rates for the Multi-Channel Fulfillment program and the Inventory Placement Service are not changing at this time.
  • The additional fee of $0.40 per unit for FBA clothing items (regardless of size) remains the same.
  • FBA Small and Light program rates will not change at this time.

 

Real-life examples

Here are some real-life examples you can use to understand the fee structure and the calculation methods. We have selected a virtual basket of 6 products that illustrate what the FBA fees would look like before and after the upcoming changes.

  • Size Tier: Small standard-size (1 lb. or less)
  • FBA Fees prior to Feb 22, 2018: $2.41 (Jan-Sept)  $2.39 (Oct-Dec)
  • Calculation method: Standard/Fixed Fee
  • FBA Fees February 22, 2018 and after: $2.41 (Year-round)
  • Calculation Method: Standard/Fixed Fee

 

  • Size Tier: Large standard-size (1 lb to 2 lb.)
  • FBA Fees prior to Feb 22, 2018: $2.99 (Jan-Sept)  $2.88 (Oct-Dec)
  • Calculation method: Standard/Fixed Fee
  • FBA Fees February 22, 2018 and after: $3.19 (Year-round)
  • Calculation Method: Standard/Fixed Fee

 

  • Size Tier: Large standard-size (1 lb. or less)
  • FBA Fees prior to Feb 22, 2018: $4.18
  • Calculation method: Standard/Fixed Fee
  • FBA Fees February 22, 2018 and after: $4.71
  • Calculation Method: Standard/Fixed Fee

 

  • Size Tier: Large standard-size (over 2 lb.)
  • FBA Fees prior to Feb 22, 2018: $4.57
  • Calculation method: ($4.18 +$0.39/lb. above first 2 lb. - dimensional weight of this product is 2.7)
  • FBA Fees February 22, 2018 and after: $5.47
  • Calculation Method: ($4.71 +$0.38/lb. above first 2 lb. - new dimensional weight of this product is 3.22)

  • Size Tier: Small Oversize
  • FBA Fees prior to Feb 22, 2018: $20.89
  • Calculation method: ($6.85 +$0.39/lb. above first 2 lb. - dimensional weight of this product is 36.19)
  • FBA Fees February 22, 2018 and after: $24.47
  • Calculation Method: ($8.13 +$0.38/lb. above first 2 lb. - new dimensional weight of this product is 43.22)

  • Size Tier: Large Oversize
  • FBA Fees prior to Feb 22, 2018: $81.46
  • Calculation method: ($75.06 +$0.80/lb. above first 90 lb. - dimensional weight of this product is 96.91)
  • FBA Fees February 22, 2018 and after: $93.72
  • Calculation Method: ($73.18 +$0.79/lb. above first 90 lb. - new dimensional weight of this product is 115.74)

For additional information, please review Amazon’s Article detailing the changes in FBA rate changes.

Tagged: 2018, Amazon FBA, Amazon News, FBA, Fee Changes

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