Amazon Seller News: New Fees to Ring

 

Here is some Amazon seller news for you! Amazon changes their fees very often, so this happened again, and here is a short list of the changes that can affect sellers’ business:

  • Long-term storage fees will lower after their growth in September.
  • Referral fees for certain products will be lowered depending on the cost and the category.
  • After February 2019, new storage and referral fees will be applied.

 

So, as you have already understood, Amazon is going to change their FBA fees once more. The change will happen in February, this year - February 15 for storage fees and February 19 for referral ones.

 

If you have been selling on Amazon for some time, you can remember that in September, Amazon tends to bump up their storage fees. This caused a little panic among sellers who wanted to get rid of stock and sold discounted products without any will to pay money for excess storage fees.

Still, Amazon sent an email to sellers in December, explaining what are that fees growth was for. They told that while some fees are going to increase, referral and storage fees will decrease.


Let’s see what fees are going to be changed in February 2019:

 

Fulfillment Fees

Nothing is going to change for products of small and large sizes which weigh 10 oz or less. This will affect other Amazon product size tiers. Amazon promises to check calculations regarding oversize items. This is done for Amazon to align with packaging costs.

New fulfillment fees will be introduced for different dangerous products - flammable goods, aerosol substances, and things that include batteries.


 

What’s more, Amazon is going to make its ‘Subscribe and save’ fee structure simpler in September 2019. Sellers will get new discounts.

With new fulfillment fees, Amazon still makes business attractive for sellers. They will never discourage entrepreneurs to build a business on Amazon. So, fees are improved every year.

For learning more about Amazon product size tiers, visit this official page. Find out whether your products are small-sized, large-sized or oversized.

 

Storage Fees

Storage fees are the number 2 point in this Amazon seller news. Long-term storage fees will be eliminated for those units which are held in the fulfillment centers for the term from 181 to 365 days. January 15 will be the last date when Amazon charges such a fee. For other months, this fee will be charged only for products that are stored in warehouses for more than a year.

The minimum long-term fee will be reduced for products stored for more than a year from $0.5 to $0.15 per one item.


 

Nevertheless, there will be new storage fees for dangerous products. This will happen in March 2019.

This table from Amazon will help you connect the dots regarding inventory storage fees and their changes in 2019.

 

Referral Fees

First of all, you may wonder what is the Amazon referral fee. This is a fee for every product sold on Amazon. It is like sort of a fee which Amazon takes for your sales made on their platform.

 

  • For Health and Personal care, beauty and Baby products referral fees will be reduced by 7% (they were 15% and will be only 7%) with the condition that the total sales are $10 or less. For sales above $10, fees won’t change and will be 15%.
  • For Grocery, fees will be reduced from 15% to 8%, if the sales price is $15 or less. For sales above $15, fees won’t change and will be 15%.
  • The per-item min fee will be reduced from $1 to $0.3 in 30 categories. For Jewelry and Watches, this decrease will be from $2 to $0.3.
  • For Furniture, the fee will be decreased from 15% to 10%, if the total sales are above $200. Still, this new fee is not applicable to mattresses.
  • Fee for Jewelry products will fall from 15% to 10% if the sales are more than $250.

 

So, referral fees are going to fall, and this is definitely great news for Amazon sellers!

 

Takeaways

So, what are the main conclusions from these Amazon seller news?

 

Amazon is constantly developing their FBA program, trying to make it more attractive to sellers and online entrepreneurs. These changes are proofs that Amazon wants to make their platform more effective for third-parties.

So, they take care not only of customer experience but of your sellers’ experience too.

Be ready for fees changing, as February is already here, and they will come into effect soon!