Stay Updated On 2024 FBA Fees To Maximize Profits
2024 FBA Fees
For Amazon sellers, keeping tabs on 2024 FBA fees is like following the stock market – crucial for healthy gains. Regardless of experience level, staying updated on FBA fees is essential for Amazon sellers to make informed decisions, avoid financial surprises, and ultimately achieve healthy financial gains in the long run.
One of our best practices here in our Amazon Agency is being astute and vigilant for any changes in Seller Central that are instrumental to our clients’ success and growth.
With FBA fees being one of the crucial factors to success, we prepare this article to guide you in navigating the FBA fee changes in 2024.
2024 FBA Fees: Product Size Tiers
- Product size tiers are measurement categories based on the unit weight, product dimensions, and dimensional weight of a packaged item.
- The greater of unit weight or dimensional weight is used to calculate fees for large standard, large bulky, and extra-large units, except for extra-large 150+ lb.
- Small standard and extra-large 150+ lb use unit weight to calculate fees.
Fees that use this attribute
- FBA Fulfillment Fees
- Monthly Inventory Storage Fees
- Long-term Storage Fees
- FBA Inventory Storage Overage Fees
- FBA Removal Order Fees
- FBA Disposal Order Fees
- Fulfillment Fees for Multi-Channel Fulfillment Orders
- FBA Inventory Placement Service Fees
- FBA Prep Service Fees
2024 FBA Fees: Fulfillment Fees Non-Apparel
New Rate Cards and Size Tiers
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New, more granular rate cards will be introduced for standard-sized products.
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Large bulky and extra-large size tiers will be introduced.
Changes to FBA Fulfillment Fees
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Starting on April 15, 2024, 2024 FBA fees on fulfillment services will be reduced for standard-sized and large bulky-sized products.
Shipping Weight Calculation
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Shipping weight for calculating fees for small standard and extra-large 150+ lb is based on unit weight.
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All other size tiers use the greater of unit or dimensional weight.
Related videos you can watch:
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2024 FBA Fees: Fulfillment Fees For Apparel
Introduction of New Size Tiers
- Amazon will introduce large bulky and extra-large size tiers.
Reduction in FBA Fulfillment Fees
- Starting on April 15, 2024, FBA fulfillment fee rates will be reduced for standard-sized and large bulky-sized products.
Shipping Weight Calculation
- Shipping weight for calculating 2024 FBA fees for small standard and extra-large 150+ lbs is based on unit weight.
Watch this related video to know more:
2024 FBA Fees: Size Samples
See how product size affects your 2024 FBA fees! Check out these examples.
2024 FBA Fees: Fulfillment Fees Dangerous Goods
FBA has separate fulfillment fees for dangerous goods (also known as hazardous materials or hazmat) that require special handling and storage.
Changes to Rate Cards and Size Tiers
- On February 5, 2024, Amazon will introduce new, more granular rate cards for standard-sized products.
- Large bulky and extra-large size tiers will be introduced.
Reduction in FBA Fulfillment Fees
- Starting on April 15, 2024, FBA fulfillment fee rates will be reduced for standard-sized and large bulky-sized products.
Here are related resources to check out if you want to know more:
2024 FBA Fees: Prep Service Fees
- FBA Prep Service helps you properly package and prepare your shipments for Amazon’s fulfillment centers.
- Correct packaging and prep reduce receiving delays and protect your products from damage.
FBA Prep Service Details
- If you use FBA Prep Service, your products will be prepared for a per-unit fee, including labeling, bubble wrap, stickering, and bagging.
- After enabling the service, you can choose to prepare your own products or have Amazon prepare them for you.
- When planning your shipment in the Send to Amazon workflow, you’ll receive an estimated FBA Prep Service fee based on the services required for each product.
Qualifying Products
- Condition: Any (new, used, collectible, and refurbished)
- Product Type: Any (media and non-media)
- Barcode: Each unit must have a scannable barcode (e.g., ISBN, UPC, EAN, or JAN), not punched out, marked over, covered, or obstructed.
Refer to this table for corresponding 2024 FBA fees:
2024 FBA Fees: Removal/Disposal/Liquidation Fees
Removal/Disposal
- FBA removal and disposal fees are calculated when a removal or disposal order is placed and charged when the shipment leaves Amazon’s fulfillment centers.
- If you place a removal or disposal order before February 5, 2024, the new 2024 FBA fees won’t apply, even if the shipment is completed on or after February 5, 2024.
- Large, bulky and extra-large are previously called Oversize.
- Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.
Liquidation Fees
- Liquidation fees will remain unchanged.
- Amazon applies two separate fees to each item you liquidate:
- A 15% liquidations referral fee, based on the item’s gross recovery value.
- A liquidations processing fee, based on the item’s size and weight.
Watch these videos below to learn more:
2024 FBA Fees: Returns Processing Fee
- Effective June 1, 2024, a new returns processing fee will be implemented for products with high return rates across most product categories, excluding Apparel and Shoes.
- This initiative aims to address the operational costs associated with product returns and promote a reduction in waste.
- The 2024 FBA fees will be applied selectively to products exceeding a predefined return rate threshold established for each individual category.
Related videos:
2024 FBA Fees: Monthly Storage Fee
- Amazon charges monthly inventory storage fees for the space your inventory occupies in fulfillment centers.
- These fees are based on the volume of space your inventory occupies in cubic feet.
Changes to Off-Peak Storage Fees
- Starting April 1, 2024, off-peak monthly inventory storage 2024 FBA fees (January-September) will be reduced by $0.09 per cubic foot for standard-size products.
- This change will first be reflected in May 2024 charges for storage that occurs in April 2024.
No Changes to Other Storage Fees
- There will be no change to off-peak monthly inventory storage fees for large bulky or extra-large (previously called oversized) products.
- There will also be no change to peak monthly inventory storage fees for standard-size, large bulky, and extra-large products.
For additional information, check out these resources
2024 FBA Fees: Storage Utilization Surcharge
- Starting April 1, 2024, more detailed fee tiers will be introduced for the storage utilization surcharge.
- The surcharge will apply to Professional sellers with a storage utilization ratio exceeding 22 weeks.
- Inventory aged between 0 and 30 days will be exempt from the surcharge.
- These changes will first appear in May 2024 charges for storage in April 2024.
- Starting June 1, 2024, products auto-replenished by Amazon Warehousing and Distribution will qualify for a storage utilization surcharge waiver.
- This change will first affect July 2024 charges for storage in June 2024.
2024 FBA Fees: Aged Inventory Surcharge
An adjustment will be made to the FBA aged inventory surcharge program, effective February 15, 2024. This update applies specifically to inventory stored within your fulfillment centers between 271 and 365 days, where the associated surcharge will increase.
It is important to note that there will be no changes to the surcharge rates for inventory stored between 181 and 270 days, nor for inventory exceeding 365 days in storage.
Refer to this table for reference. Those marked with * are with the exception of products categorized as clothing, shoes, bags, jewelry, or watches.
2024 FBA Fees: FBA New Selection Program
FBA New Selection offers rebates on eligible branded and non-branded ASINs, along with free monthly storage, free liquidations of unproductive inventory, and free return processing for all eligible parent ASINs that are new to FBA, for a limited time.
Existing FBA sellers must enroll in the program and will be assessed for fee waivers based on eligibility criteria. New sellers will be automatically enrolled in the program if they create their first shipment within 90 days of listing their first buyable ASIN.
Rebate on Sales
- Existing 10% average rebate on sales continues for eligible new-to-FBA parent products.
- New rebates available for eligible non-branded products:
- Non-Standard Size: Increased unit limit to 50 per product (previously 30) and extended duration to 120 days (previously 90).
- Standard Size: Rebate applies to up to 100 units per product for 120 days.
Unit and Timing Eligibility (Non-Standard Size Products)
- Increased benefits:
- Units per product: 50 (previously 30)
- Duration: 120 days (previously 90)
Reduced IPI Score Requirement
- Lower score needed to qualify: 300 or higher (previously 400)
Reduced Vine Enrollment Fee (Coming Soon)
- Get 25% off Vine enrollment for enrolling 3-10 units per product (details coming in early 2025)
Returns Processing Fee Exemption (Starting June 1, 2024)
- No returns processing fees for up to 20 units of non-apparel/non-shoe products returned within 180 days.
2024 FBA Fees: Logistics
Program Enhancements
- Revised 2024 FBA fees and Benefits: We have reviewed and adjusted the rates and benefits associated with the following programs:
- Amazon Global Logistics
- Partnered Carrier Program
- Amazon Warehousing & Distribution
- Auto-Replenishment Incentives: New discounts are available for sellers who utilize our auto-replenishment functionality for inventory management.
Weight Calculation Clarification
- Determining Size Tier and Fees: We utilize the greater weight between the unit weight (actual product weight) and the dimensional weight when calculating fees for the following product sizes:
- Large Standard
- Oversize (excluding Special Oversize)
- Large Bulky
- Extra-Large (excluding 150+ lb)
- Exception: Fees for Small Standard, Special Oversize, and Extra Large 150+ lb items are based solely on unit weight.
2024 FBA Fees: Low-Price FBA
Items priced below $10 qualify for Low-Price FBA rates, which offer the same delivery speeds as standard FBA but are $0.77 cheaper. These rates include free shipping for Prime members and standard shipping for non-Prime customers.
2024 FBA Fees: Low-Inventory-Level
Effective April 1, 2024
- Applies to standard-size products with consistently low inventory relative to customer demand.
- Designed to address issues related to inefficient distribution, degraded delivery speed, and increased shipping costs due to low inventory levels.
Inventory Level Criteria
- Fee applies when a product’s inventory level relative to historical demand (known as “historical days of supply”) is below 28 days.
- Fee charged when both long-term historical days of supply (last 90 days) and short-term historical days of supply (last 30 days) are below 28 days (4 weeks).
- Example: If a product’s short-term historical days of supply is above 28 days but long-term historical days of supply is below 28 days, the fee won’t apply.
Calculation and Application
- Historical days of supply metric calculated at the parent-product level for each seller.
- Low-inventory-level fee added to the FBA fulfillment fee for all shipped units of eligible products.
2024 FBA Fees: Referral Fees
Referral Fee Reduction for Apparel Products (Effective January 15, 2024)
2024 FBA Fees: Size Category Update
Amazon will implement new size tiers to replace the current Oversized category: Large Bulky and Extra-Large.
This change ensures a more accurate classification of products based on size and weight.
Enhanced Tiering for Standard-Sized Items
- Small standard-size items will be tiered at 2-ounce intervals for precise categorization.
- Large standard-size items exceeding 1 pound will utilize 4-ounce intervals for better differentiation.
Consistency Across Services
- The new fulfillment tiers will also apply to remote fulfillment, ensuring consistent categorization across all Amazon services.
Benefits
- Improved efficiency and accuracy for Amazon’s fulfillment process.
- Enhanced experience for both sellers and customers.
2024 FBA Fees: Inbound Placement
Placing inventory strategically in multiple fulfillment centers nationwide is crucial for faster and more cost-effective product delivery. The FBA inbound placement service fee for standard and large bulky sized products, effective March 1, 2024, reflects the cost of distributing inventory to fulfillment centers closer to customers.
Minimal Shipment Splits
- Send inventory to the minimal number of inbound locations, typically one, and Amazon will distribute it across their network, incurring a fee.
- Fees may vary by inbound location, with potentially higher fees for shipments to the West compared to other regions.
Partial or Amazon-Optimized Shipment Splits
- Send inventory to multiple inbound locations yourself for a reduced or no fee.
- Reduced fees depend on the number of shipments and inbound locations.
- Selecting the optimal number of inbound locations recommended by Amazon (generally four or more) incurs no fee.
- Choosing to send inventory to a partial number of inbound locations (typically two or three) results in a reduced fee.
2024 FBA Fees: NARF
North America Remote Fulfillment with FBA
Overview
- Allows US sellers to sell to customers in Canada, Mexico, and Brazil without sending inventory to those countries.
- Eligible products are automatically enrolled.
- Offers appear on Amazon.ca, Amazon.com.mx, and Amazon.com.br.
Process
- Amazon uses US inventory to fulfill orders directly to customers.
- Sellers can opt out at any time.
Shipping and Returns
- Prime customers in Mexico, Canada, and Brazil receive free shipping.
- Customers pay import duties and taxes.
- Returns go back to the US and follow the FBA customer returns policy.
Order Management
- Orders appear in the seller’s Canada, Mexico, or Brazil account, based on customer location.
2024 FBA Fees: Ships in Product Packaging
- Allows products to be shipped to customers in their original packaging, without additional Amazon packaging.
- Products certified as SIPP receive lower FBA fulfillment fees per certified unit.
- Amazon certifies products if their packaging meets SIPP guidelines.
- Products smaller than 6x4x0.375 inches or classified as dangerous goods or extra-large items are not eligible for SIPP rates.
Discounted Rates (Effective February 5, 2024)
- Lowered 2024 FBA fees apply to fulfillment of SIPP-certified units.
- Details on SIPP guidelines and enrollment can be found at SIPP enrollment guidelines.
2024 FBA Fees: AWD
- Amazon Warehousing & Distribution (AWD) Rate Card is a third-party logistics program providing cost-effective, long-term bulk inventory storage.
- Automatically replenishes inventory in Prime-ready fulfillment centers.
Enrollment and Fees
- No fees for enrolling in the program.
- Charges only apply when sending inventory to Warehousing and Distribution facilities.
Rate Card Changes (Effective March 1, 2024)
- Base Rate: Applies if using your own transportation/carrier service for shipments to AWD.
- Integrated Rate: Applies if using Amazon Global Logistics or the Partnered Carrier Program as the upstream transportation/carrier service provider.
- Revised AWD storage fee will be first reflected in April 2024 FBA fees for storage utilized in March 2024. Processing and transportation fees will be applicable for replenishment orders confirmed on or after March 1, 2024.
Eligibility for Integrated Rates – Amazon Global Logistics Services
- Minimum one LCL or FCL shipment using Amazon Global Logistics service inbounded for AWD in the last 115 days.
- Eligibility evaluated on the 25th calendar day of a month for next month’s charging.
Eligibility for Integrated Rates – Partner Carrier Program Services
- Minimum one LTL or SPD shipment created using Partner Carrier Program service inbounded for AWD in the last 30 days.
- Eligibility evaluated on the 25th calendar day of a month for next month’s charging.
Multi-Channel Distribution Replenishment Orders
- Processing fee: $2.50/box (base rate) or $2.13/box (integrated rate).
- Transportation fee: $1.65/Cu ft.
FBA Fee Waivers
- Waivers on selected FBA surcharges for sellers using automated replenishment feature of AWD.
- Waived FBA inbound placement service fee for all AWD shipments.
2024 FBA Fees: MCF
Eligibility
- Multi-Channel Fulfillment (MCF) is open to new Professional sellers on Amazon.
- First buyable ASIN listed in the US on or after March 1, 2024.
- Program duration: March 1, 2024 – February 28, 2025.
Benefits
- MCF New Seller Incentive:
- 10% discount on fulfillment fees for the first 100 units shipped with Amazon MCF.
- Applies to all product size tiers and MCF delivery speeds.
- Includes additional MCF surcharges (if applicable).
- Effective date: May 1, 2024.
Verification of Eligibility
- Access your New Seller Incentives dashboard.
- Click “Program Overview.”
- Navigate to the MCF tile.
- Look for the “Active” badge in the top right corner.
Monitoring Benefit Usage
- Access your New Seller Incentives dashboard.
- Click “Program Overview.”
- Navigate to the MCF tile.
- View details on shipped and remaining units eligible for the discount.
Viewing MCF Fee Statements
- Go to Seller Central > Payments > Reports repository.
- Generate a Custom Date Range report for the period you shipped your first 100 eligible MCF units.
- Download the report.
- Filter column L to “Non-Amazon” to see MCF fees.
2024 FBA Fees: How Do Sellers Cope?
Navigating the 2024 FBA fees can be challenging, especially with the recent changes and fee increases. Here are some best practices based on the latest updates:
- Fulfillment Fees: Expect an average increase of 5 to 8% for standard size items, which is in line with inflation. Ensure your pricing strategy considers these increases.
- Long-Term Storage Fees: The minimum storage duration for assessing fees has been reduced from a year to six months. Keep track of your inventory and avoid overstocking to minimize these fees.
- Storage Fees: Amazon has introduced a tiered pricing model based on the product’s volume. Be aware that smaller items may experience increased storage costs.
- Removal Fees: Fees for removing inventory from Amazon fulfillment centers have been revised. Plan your inventory management carefully to avoid unnecessary removals.
- Packaging and Prep Service Fees: FBA has introduced fees for optional packaging and prep services. Consider using these services strategically, as they will now incur additional charges.
- Category Specific Adjustments: Fees for certain categories have been adjusted. Sellers in specific niches may experience changes in referral fees or other category-related charges.
- Return Processing Fee Increases: The fee for processing customer returns has been increased. Be proactive in managing your returns to minimize these fees.
- Inbound Placement Fees: Consider using premium service to send inventory to a single location to reduce fees, or discounted service to send to multiple locations with no or reduced fees.
- Utilize the Ships in Product Packaging (SIPP) Program: By participating in this program, you can benefit from discounted FBA fees. This program allows you to ship products in your own packaging, which can save you money.
- Monitor Inventory Levels: Amazon will introduce a fee for standardized products that consistently have low inventory levels. Ensure you have at least a 4-week supply of inventory to avoid this fee.
- Utilize New and Expanded Services: Amazon is offering incentives such as rebates, free monthly storage, and return waving fees for eligible new-to-FBA parent ASINs. Evaluate if these programs can benefit your business.
- Stay Informed: Keep track of Amazon’s updates and policies regarding fees. Understanding these changes can help you adapt your strategy and minimize costs.
It’s essential to stay proactive and adapt your strategy to these changes to minimize costs and maximize your profitability on the Amazon platform.
In conclusion
Staying updated on the 2024 FBA fees is crucial for Amazon sellers to effectively manage their costs and maintain profitability on the platform. With the recent fee hikes, sellers need to be proactive in adjusting their strategies to mitigate the impact on their bottom line.
My Amazon Guy, as an experienced Amazon agency, can help sellers navigate these changes and make the most out of this fee hike. Our team of experts can provide tailored solutions to optimize inventory management, shipping practices, and overall business strategies to ensure sellers thrive in this evolving marketplace.
Contact My Amazon Guy today to learn how we can help grow your business and navigate the challenges of the 2024 FBA fee changes.
