A lot has changed for Amazon in 2019. More warehouses, new delivery services, and one-day delivery are just three of those exciting changes. Starting on February 18, 2020, Amazon is changing its fee structure for Amazon sellers as well.
Read our handy summary of these fee changes and about the new and exciting FBA New Selection program!
- Shoes, Handbags, and Sunglasses fee drops from 18% to 15% for items with a total sales price above $75.00
- Outdoor furniture fee drops from 15% to 10% for any portion of sales above $200
- Personal care appliances to be consolidated into Health & Personal Care category, dropping the fee from 15% to 8% for items with a total sales price of $10 or less
- Activewear will be charged the same fees as Clothing & Accessories at 17%
- Ring accessories to be consolidated into the Amazon Device Accessories category and charged a fee of 45%
- Amazon Business to have one referral fee rate per category, so items above $1,000 will have the same rate as items less than $1,000
Core fulfillment fees are going to be increased by an average of 3-4% across the board.
Other changes to fulfillment fees are below:
- Clothing will no longer have the $0.40 per unit charge
- Small & light fee will now have a single per-unit fee by weight instead of separate order handling, pick and pack, and weight fees
- FBA Label Service for Small and Light items will be $0.10 per unit
- No long-term storage fees for small and light items in fulfillment centers for 181-365 days
- Small and Light will now have the same standard long-term FBA storage fees (more than 365 days), so $0.15 per unit instead of $0.50 per unit
- Small and LIght will have the same standard FBA disposal and removal fees
Introducing FBA New Selection
New to FBA for 2020 is the FBA New Selection program. This program allows sellers to enroll new-to-Amazon ASINs for fee reductions and other benefits.
Sellers must opt-in before they’re qualified to take advantage of this new program.
Benefits sellers will receive from this program:
- Fee waivers for up to 500 new-to-Amazon ASINs
- Free monthly storage for the first 50 units of each parent ASIN in the 90 days after the first unit is received at the fulfillment center
- Free removals of the first 50 units within 180 days
- Free returns processing for five product categories in bold below
- Apparel; Shoes, Handbags, & Accessories; Jewelry; Luggage; and Watches will have their returns processing fees waived for the first 50 units of each parent ASIN
- Returned items must be received within 120 days from when the inventory was first received
- $100 inbound transportation discount for new FBA sellers through the Amazon Partnered Carrier program
Who is eligible?
- Sellers with an Inventory Performance Index (IPI) score of 400 or higher
- Sellers who have no storage limit
What is eligible?
- Small standard and large standard-sized items are eligible
- Parent ASINs must be new to Amazon
- ASINs in media not eligible
- Used items not eligible
Other information about FBA New Selection
- Begins April 1, 2020
- Only first 50 units of each eligible ASIN qualify for fee waivers
- Only the first 500 new-to-Amazon ASINs qualify for the fee wavers, but this limit is reset every year on April 1
- Available only to Professional sellers
Fee increases aren’t really surprising to veteran Amazon sellers who are accustomed to annual, and sometimes semi-annual, changes to Amazon’s fee structure.
The biggest benefit will be to sellers who are participating in the Small & Light program, which has been drastically simplified with consolidated and reduced fees.
Amazon’s FBA New Selection program also looks interesting, as it encourages sellers to continue to introduce new products, which will be great for Amazon and customers.
Be prepared for these changes to Amazon’s fee structure starting on February 18, 2020!