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Amazon Seller Fees Raise This Month: What to Know
In the past years, Amazon has postponed and attempted to keep fee changes low by reducing or eliminating certain fees like customer returns, but in 2022 some of those fees will be put back onto sellers, particularly FBA fulfillment fees. Amazon states that these fees will remain 30% less expensive on average than if sellers were to fulfill orders independently, giving FBA sellers the best delivery speed and price compared with standard service prices.
This blog will give an overview of upcoming fees that Amazon sellers can expect in 2022.
When Do Amazon Seller Fees Increase?
Starting on January 18, 2022, FBA fulfillment fee changes will be taking effect. FBA fulfillment fees are calculated and charged when shipments leave Amazon fulfillment centers. This means that if a product is shipped on or after January 18th, the new FBA fulfillment fees will apply.
But you won’t see that impact until your next payout. Every 14-days, Amazon takes a cut from your payout and can hold funds from each sale up to seven days after a product is received. In theory, there can be an additional three to five days for you to get those funds in your bank account.
Further Reading: 10 Hidden Fees on Amazon
Stay on top of the latest e-commerce and marketplace trends.
Amazon Seller Fulfillment Fee Changes in 2022
Sellers have been through it all: COVID, supply chain bottlenecks, and labor market challenges, but overall continue to achieve great success. In 2021, over 3.8 billion products were sold by US-based sellers on Amazon. That’s 7,400 products per minute, and during that time, US fulfillment capacity for Amazon more than doubled.
There are four types of Amazon seller fees that you might have to pay when you sell products on Amazon:
- FBA fees
- Referral fees
- Minimum referral fees
- Closing fees
Fees vary based on the type of seller, item category, and price of sale.
On January 18, 2022, the change will impact the following fulfillment fees: Core FBA fulfillment fees (excluding apparel), FBA fulfillment fees for apparel, and FBA fulfillment fees for dangerous goods.
The following section will break down the general changes to fees and any additional call-outs. For a full breakdown of the 2022 U.S. FBA fulfillment fee changes, check out Amazon’s Seller Central article.
1. Core Amazon FBA Fulfillment Fee Changes
Core FBA fulfillment fee changes (excluding apparel) will be adjusted based on unit or dimensional weight for all standard-size units.
Exceptions to this are as follows:
- Lithium batteries and items that contain or are sold with lithium batteries will be an additional $0.11 per-unit fulfillment fee.
- Dimensional weight will no longer apply to small standard-size units.
- The greater unit or dimensional weight will apply to all large standard-size units.
2. FBA Fulfillment Fees for Apparel
New FBA fulfillment fees for apparel will be incremental based on the size tier in the standard category. Oversized apparel tiers, including small oversize, larger oversize, and special oversize, will be charged the core FBA fulfillment fees.
3. FBA Fulfillment Fees for Dangerous Goods
FBA has different fulfillment fees for hazardous materials or hazmat that require special handling and storage that fall in the dangerous goods category. Similar to the changes in the other categories, there will be incremental increases based on the size tier.
Additional FBA Seller Fees & Costs
In addition to increased FBA fulfillment fees, there are many other Amazon seller costs and fees that should be carefully considered when creating goals and making a budget for 2022.
Return Processing Fees
Many items bought on Amazon during the holidays have an extended holiday return period until January 31, 2022. Sellers should get an automatic reimbursement from Amazon for all returns within 45 days. Up until 45 days after January 31st, you should be extra vigilant that you are getting reimbursed for returned products. This will help you make up for any lost holiday costs and fees associated with an increase in FBA fulfillment fees.
Further Reading: 2022 E-Commerce Returns
Monthly Storage Fees
The good news is that, as usual, product storage fee prices go down from January to September. For standard size and non-dangerous goods, that’s a saving of over $1.65 per cubic foot of storage.
And while monthly storage fees for Amazon are not changing in January other than the usual seasonal change, there are a few different values used to calculate your monthly storage fee, including:
- Product size tier
- Current month
- Product volume
- Average daily units
Be sure to regularly calculate your monthly storage fees to be sure you are optimizing your sales and take out unnecessary items in storage.
Further Reading: Avoiding Long-Term Storage Fees
What You Can Do About Increased Fees
As an FBA seller on Amazon, there is not much you can do about FBA fulfillment fees increasing, but you can optimize your strategy around the categories, sizes, and success of the items you are selling to improve profitability.
With a third-party solution like Feedvisor, you can run reports and look at your performance dashboard to identify your high-performing listings, underperforming listings, and unprofitable items. If you have unprofitable items with an FBA fulfillment fee that is increasing, it may be time to liquidate your stock for that item as soon as you can so as not to deplete your resources, pay hefty fees and ultimately prevent your full growth potential.
Whether or not you have a third-party solution that makes it easy to quickly look at SKU performance, an increase in fees is always a sign to review your current strategies to be sure you are optimizing your product investment strategy on Amazon and across e-marketplaces.
Hidden fees can add up, and at the end of the day, your goal as an Amazon seller is to make a profit. Understanding the expected payments and costs can help you keep your bottom line.
Are you having trouble keeping track of all of your SKUs? Not sure how to track or determine which products are still profitable? Feedvisor’s price optimization and intelligence platform help you keep track of what items are making you money and which items to remove to increase profit margins.
Want to see it in action? Try Feedvisor free for 30 days.