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Amazon To Raise FBA Fees In 2018…. Yes… AGAIN!

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If you are an Amazon seller who users their FBA service then you likely received an e-mail today explaining the once again fees will be rising in 2018. Amazon is beginning to make this hike in fees an annual thing. Unfortunately, these fee hikes are going to drive some third party sellers away from the platform and for those who stay they will have to raise their prices. These fee hikes hurt both Amazon sellers and buyers but hey at least Jeff Bezos (the owner of Amazon) is the richest person in the world now. Good for him.

Here is a copy of the letter with the specific fees increases that Amazon sent out today:

As in previous years, FBA fees in the U.S. will be adjusted to reflect the changing costs of fulfillment, transportation, and customer service. The new fulfillment fees will take effect on February 22, 2018. We’re notifying you now to give you time to plan for these changes.

FBA is introducing the following changes:

  • Fulfillment Fees: We will adjust our fulfillment fees for most product size tiers and weights. The adjusted fees will apply throughout the year, and we will no longer have a separate rate for October through December. See details (or scroll to Fulfillment Fee schedules below).
  • Dimensional Weight Calculation: We are adjusting the way we calculate dimensional weight to align with current industry standards. Currently, dimensional weight is calculated as the unit volume (based on length x width x height in inches) divided by 166. Effective February 22, 2018, we will calculate dimensional weight as the unit volume (based on length x width x height in inches) divided by 139 (instead of 166). The dimensional weight is only applicable for large standard-size items weighing more than 1 lb. and all small, medium, and large oversize items.

FBA inventory storage fees are not changing at this time. We will announce changes to these fees in early 2018.

For complete details of the fee changes, visit www.amazon.com/fba-fee-changes. The following fee schedules show the current and new FBA fees and the dates they apply:

FBA Fulfillment Fees
Prior to February 22, 2018
February 22, 2018 and after
Standard-size January – September October – December Year-round Rates
Small (1 lb. or less) $2.41 $2.39 $2.41
Large (1 lb. or less) $2.99 $2.88 $3.19
Large (1 lb. to 2 lb.) $4.18 $3.96 $4.71
Large (over 2 lb.) $4.18 +$0.39/lb. above first 2 lb. $3.96 +$0.35/lb. above first 2 lb. $4.71 +$0.38/lb. above first 2 lb.
Oversize January – September October – December Year-round Rates
Small Oversize $6.85 +$0.39/lb. above first 2 lb. $6.69 +$0.35/lb. above first 2 lb. $8.13 +$0.38/lb. above first 2 lb.
Medium Oversize $9.20 +$0.39/lb. above first 2 lb. $8.73 +$0.35/lb. above first 2 lb. $9.44 +$0.38/lb. above first 2 lb.
Large Oversize $75.06 +$0.80/lb. above first 90 lb. $69.50 +$0.76/lb. above first 90 lb. $73.18 +$0.79/lb. above first 90 lb.
Special Oversize $138.08 +$0.92/lb. above first 90 lb. $131.44 +$0.88/lb. above first 90 lb. $137.32 +$0.91/lb. above first 90 lb.
Add $0.40 per unit for clothing items

We remain dedicated to providing high value to our sellers. Here’s a look at some of the improvements to FBA in 2017:

  • Even Faster Free Shipping: We offer Prime FREE One-Day Shipping and Same-Day Delivery in more than 5,000 cities, including pickup on millions of items at campus locations. Unlimited FREE Two-Day Shipping continues to be available to U.S. Prime members on more than 50 million items across all product categories.
  • International Selling Tools: The Build International Listings tool has expanded to enable FBA sellers who have linked their accounts to replicate Amazon and seller-fulfilled offers and synchronize pricing across North America, Europe, and Japan.
  • SKU Performance: The new SKU performance feature allows easy access to product sales, pricing, and inventory performance data with a single click of any SKU link on the Manage Inventory and Excess Inventory pages, or simply enter your SKU in the Seller Central search bar.
  • Inventory Performance: The new Inventory Performance Index metric aggregates data from your sales, inventory, and costs to measure the overall growth and efficiency of your FBA business. Based on this metric, we provide you with three specific steps to help increase your score: restock recommendations, excess inventory suggestions, and stranded inventory actions. See your Inventory Performance Index score.

For more information about these upcoming changes, including fee schedules, definitions, and examples, visit www.amazon.com/fba-fee-changes. We welcome your feedback on these announced changes at fba-fee-announce-feedback@amazon.com. The FBA business team will review each comment.

Thank you for selling on Amazon.

Regards,

The Fulfillment by Amazon team


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