Amazon has announced significant changes to its Fulfillment by Amazon (FBA) and referral fee structures in Europe, effective February 1, 2025. These updates aim to simplify fee structures, reduce costs for sellers, and align fees with operational expenses. Here’s a comprehensive breakdown of the key changes and their implications for sellers.
Key Updates to FBA and Referral Fees
- Lower Fees for Parcels and Oversized Items
- Average Fee Reduction: FBA fulfillment fees for parcels and oversized items will decrease across major markets, including the UK, Germany, France, Italy, and Spain.
- Simplified Oversize Rates: The number of weight-size bands will reduce from 28 to 17, introducing a base rate with incremental per-kilogram charges for oversized items.
- New Envelope Size Tier
- A new small envelope tier based on weight will simplify fee calculations and reduce variability.
- A new small envelope tier based on weight will simplify fee calculations and reduce variability.
- Adjustments for Other Fees
- Fees for envelopes, low-priced FBA items, and specific markets (Netherlands, Sweden, and Belgium) will align with operational costs.
- The minimum referral fee for heavy non-sortable items will drop from £25/€25 to £20/€20.
- Storage and Inventory Fees
- Monthly storage fees, particularly from October to December, will increase.
- An aged inventory surcharge will apply to items stored for 241–270 days.
Enhanced Incentives for Sellers
- New Seller Incentives and FBA New Selection Programs
- Starting January 15, 2025, eligible sellers will benefit from greater fee discounts targeting high-demand and low-selection products, popular brands, and everyday essentials.
- These time-bound incentives will be regularly updated on the Seller Benefits page.
- Categories in Focus
- The incentives prioritize products with high customer demand but limited availability in Amazon’s stores.
Improvements to Seller Tools
- Enhanced Fee Calculators
- Updated tools will provide better cost insights, helping sellers optimize their pricing strategies.
- The FBA inbounding process will now offer cost estimates and recommended shipping options.
- Previewing Fee Changes
- Before implementation, sellers can review updated fee structures using the Revenue Calculator and FBA Fee Preview reports.
Frequently Asked Questions
- Are there fee increases?
Some fees, including those for envelopes, low-price FBA, and storage utilization, will increase to align with operational costs. - Will there be new fee types?
No new fee types are being introduced for 2025. - What are the benefits of the new weight-based envelope tier?
This tier reduces complexity and makes fee predictions more reliable by focusing solely on weight rather than dimensions.
Key Takeaways for Sellers
- Cost Savings and Simplification
Sellers handling parcels and oversized items will benefit from reduced fees and a streamlined fee structure. - Opportunities with New Incentives
Utilize the enhanced New Seller and FBA New Selection programs to maximize benefits on eligible products. - Stay Updated
Monitor the Seller Benefits page and use the updated fee tools to remain informed about fee impacts and opportunities.
These fee updates and tools show Amazon’s commitment to supporting sellers and driving growth. Sellers can better optimize their operations and thrive in 2025 by adapting to these changes.