While Amazon is familiar with updating their fees, they are usually less noteworthy than the changes in early 2024. Amazon has been taking significant steps to improve its technology, services, and marketplace for sellers and shoppers alike. However, these significant advancements — as well as those generally seen in the e-commerce space — come at a price. This article reviews the essential changes to Amazon’s core FBA fees and others you need to know to accelerate your e-commerce success.
Why the Changes?
As mentioned above, Amazon has invested in improving its technology, transportation offerings, services, and general infrastructure. Amazon’s updated fee structure addresses the commitments to updated services and fulfillment options to provide a superior experience for shoppers and sellers.
What Can Sellers Expect?
In general, sellers will see an average increase of $0.15 in fees per unit sold; however, Amazon generally expects many sellers to see a decrease in the average fees paid to Amazon per unit sold. Amazon’s fulfillment fees will remain at an average of 70% less expensive than two-day shipping methods offered by other major third-party logistics providers.
Further details include:
- Inbound placement service fee: average $0.27 per standard-sized product; $1.58 per bulky-sized product.
- Decreased FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit.
- Fulfillment fee discounts range from $0.04 to $1.32, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program.
For more details, we always recommend reading Amazon’s statements directly.
Maintaining Profitability on Amazon
Despite Amazon’s consistent changes and increased fees, can brands stay profitable in its marketplace? Of course! We’ve seen brands of all sizes keep selling and growing regardless of any changes they experience from Amazon or the greater e-commerce landscape.
One of the main throughlines for successful businesses is their ability to adapt. This means accounting for these overall changes, adjusting prices and strategies according to buyer interest and seasonality, and regularly optimizing their catalogs. Keep learning, keep experimenting, keep learning.
The Future is Multichannel
Here’s a secret: the best way to stay profitable no matter what comes your way is to embrace multichannel marketing. After all, your brand will be less affected by changes on Amazon if you’re selling on Walmart. You can maintain a steady stream of new and repeat shoppers if you advertise wisely on and off platform, embracing native tools, Google, and social media. What is the best way to spread your reach and excel in your business? Employ a team and a tool that excels at it. Teikametrics’ team and industry-leading AI are built around simplifying the e-commerce process from strategy to optimization to reporting. Our team helps million-dollar brands grow their businesses. Experience the difference with our free demo webinar.