2023 Amazon Logistics Fees, Referral Fee Adjustments and Promotions in the U.S.

2023 Amazon Logistics FBA Fees, Referral Fee Adjustments and Promotions in the US

November 18, 2022

Contents:
01/ Amazon Referral Fee Changes
02/ Amazon Logistics Fee Changes
03/ Amazon Logistics Preferential Program Benefits Increased

2022 is coming to an end, and Amazon thanks our sellers and friends for their continued support. Despite the challenges, Amazon sellers have risen to the challenge, persevered, demonstrated great adaptability, and worked with Amazon to provide excellent service to buyers.

In order to better serve sellers, Amazon continues to invest heavily in people, technology, transportation, and infrastructure, continue to innovate, and continuously improve efficiency and optimize cost management. We look forward to providing you and your buyers with high-value, high-quality services.

Important Update

The following updates will be made regarding Amazon US site commissions and Fulfilment by Amazon (FBA) fees. These updates will take effect on January 17, 2023 (Pacific Standard Time, same below), unless otherwise specified.

Naturally, doing business depends on profit. The basic components of Amazon's selling costs are as follows, so you can understand how to better price products, optimize sales margins, and achieve long-term development. To start a cross-border e-commerce business, you need to consider:

✅ Product cost
✅ Sales commissions
✅ Advertising and marketing costs
✅ Selling Commission: Selling on Amazon requires only a set of information for $39.99 per month to launch 14 major websites
✅ Logistics tariff costs: including first-way logistics costs, warehousing costs, final logistics costs, import customs clearance taxes, destination country consumption tax, etc.

Logistics issues Logistics and warehousing related services

“After all, cross-border e-commerce requires delivery to foreign countries. Worried about logistics issues, are there any potential risks?Abbottt, Premiere Creative’s creative director.

Sellers don't need to worry about logistics!
First, Amazon provides an Amazon Logistics New Product Entry Promotion Program to help sellers test new products at a lower cost and help you save more money in the early stages of opening a store. At the same time, Amazon provides sellers with one-stop warehousing and logistics services to solve the problems of cross-border transportation in all aspects from cross-border logistics, inventory management, and end delivery to reduce the operational pressure of cross-border logistics for you. Using Amazon Logistics can not only help increase product exposure and sales, but also enjoy next-day/two-day delivery services, improve customer experience, and have round-the-clock professional customer service to solve after-sales problems for you!

💡 Click to learn more: How to do logistics for newbie sellers on Amazon?Answer the question in one sentence!

Product selection issues Overseas consumer preferences and shopping trends

“Although I've been overseas for a while, I'm not a native local after all, and I don't really understand their preferences. Abbottt, Premiere Creative’s creative director.

Commission fees will remain the same!

These fees allow Amazon to provide sellers with traffic from hundreds of millions of customers, an attractive shopping experience for buyers, and services such as payment processing and fraud prevention.

Amazon is removing the following fee categories: coin collectibles, entertainment collectibles, sports collectibles, and collectible cards. The affected ASINs will be reclassified to the most appropriate product category, which may result in lower or higher fees for these reclassified products than before.

🔍 Click on the link below to view the specific cost classification definitions 👇
https://sellercentral.amazon.com/gc/fee-category-guidelines

2) FBA fulfillment fee reduction:

Earlier this year, Fulfilment by Amazon (FBA) fees introduced fuel and inflation surcharges. At the time, it was thought that this may only be a temporary increase in costs, but these cost increases have not abated as quickly as hoped, so in order to cope with the rising costs, Amazon will adjust standard FBA rates.

Eliminate fuel and inflation surcharges

Amazon will eliminate fuel and inflation surcharges.

2) FBA fulfillment fee reduction:

Amazon Logistics will increase shipping costs by an average of $0.22 per item, a standard lower than the fee increases announced by other logistics providers. At the same time, Amazon Logistics delivery fees will introduce more detailed weight breakdown levels (at the quarter-pound and half-pound levels) to provide more refined fees.

Lower returns processing fees

Reduced return processing fees for clothing and footwear products, with an average reduction of $0.20 per return.

Delivery weight adjustments

For clothing products, the greater of the single item weight or dimensional weight will be used to determine the shipping weight for all large standard-size products. This change will take effect on February 16, 2023.

Check out the full details of Amazon Logistics fee changes in the US in 2023 👈

02 Inventory costs

This year, the Amazon Logistics warehouse space used by some Amazon sellers exceeds the space Amazon expects to be able to better serve sellers, which limits the amount of goods other sellers can ship to Amazon Logistics fulfillment centers.

As a result, inventory fees will be updated and fee items will be further refined to more appropriately reflect basic costs. This will help maintain healthy inventory, improve storage utilization efficiency, and create more storage capacity for sellers who use storage space effectively.

Monthly Inventory Storage Fees

✨ Non-peak season storage fee (January to September)

▶ ︎ An increase of $0.04 per cubic foot for standard-sized products;
▶ ︎ Oversized items increased by $0.03 per cubic foot.

✨ High season storage fee (October to December)

▶ ︎ The cost of sortable products will remain the same;
▶ ︎ An increase of $0.20 per cubic foot for large, unsortable items.

Storage usage surcharges

A storage utilization surcharge will be charged to sellers who store inventory in Amazon fulfillment centers and whose inventory volume is high compared to their recent weekly sales volume.

It is expected to affect approximately 7.5% of all sellers who use storage significantly more than sales.

This change will take effect on April 1, 2023.

Aged inventory surcharge

✨ The storage age is between 271-365 days

Increase the surcharge for the storage age between 271-365 days.

✨ The storage age is between 180-270 days

Overage inventory surcharges apply, excluding the following categories of products: clothing, shoes, bags, jewelry, and watches. These changes will take effect on April 15, 2023 on the Overage Inventory Assessment Date.

These changes will help Amazon make more effective use of storage space and create more inventory for sellers who use space efficiently. Therefore, please check your overage inventory and take action on these products.

Inventory removal and disposal fees

Due to increased service costs, inventory removal and disposal fees will increase, and bulk clearance fees will remain the same. Seller friends are advised to actively use the Bulk Clearance Program to recover more inventory value.

Check out the full details of the 2023 storage fee changes 👈

01 The commission benefits of the Amazon Logistics New Product Entry Promotion Program have been strengthened!

Sales rebates for eligible new Amazon products will increase from an average of 5% to 10%, and Amazon will also increase the number of products eligible for benefits and extend the application period of certain benefits within the program. The rebate will still apply to sellers who meet certain conditions.

*Note: The exact effective date and details of this change will be announced later.

Click the article to learn 👇
FBA New Selection program

02 Amazon Logistics Light and Small Product Plan: The discount threshold has been further lowered!

The range of products applicable to the Amazon Logistics Light and Small Product Program will be further expanded, and the price of eligible products will be raised from $10 or less to $12 or less, enabling sellers to list more products at a lower cost.

The Amazon Logistics Light and Light Product Program is a special delivery solution launched by Amazon Logistics for small and light products with fast circulation and low unit prices. By joining the “Small and Light Products Program,” you'll enjoy lower shipping costs, the product Prime logo, and an easier purchasing experience for customers.

Check out the full details of the 2023 Light and Light Goods Program fee changes 👈

The above fee changes are designed to allow Amazon to better serve sellers while ensuring that Amazon continues to provide you with significant value compared to other logistics service providers. In comparison, these fee changes are lower than the changes announced by other carriers so far. Additionally, Amazon's logistics costs will still be an average of 30% lower than standard shipping methods offered by other major third-party carriers, and an average of 70% lower than the equivalent two-day delivery method.

See all the summary details of the fee changes 👈