It was just a few years ago when Amazon had relatively simple and straightforward fees. This fee structure made it much easier for sellers to focus on their growth. Fast forward a couple of years and Amazon fees have started to feel more like a moving target.
As an Amazon seller, it is important to know and understand all these fees and when they are changing so you can be ready to pivot for continued success
Let’ deep dive into the fee changes that have or will occur in 2022:
FBA fulfillment fee changes
Starting on April 28, 2022, a 5% fuel and inflation surcharge will be applied to FBA fulfillment fees. The surcharge is subject to change.
FBA monthly storage fee and aged inventory surcharge
Starting February 1, 2022, off-peak monthly inventory storage fees (January-September) were increased by $0.08 per cubic foot for standard-size products and $0.05 per cubic foot for oversize products. This change was first reflected in March 2022 charges for storage that occurred in February 2022.
Amazon referral fee changes
In 2022, the only decrease is the Amazon marketplace charge for Amazon referral fees.
Amazon charges referral fees when you make a sale. The referral fees are based on the total sales price, which includes the item price and any shipping or gift wrap charges.
Starting January 18, 2022, Amazon will reduce the referral fee for lawn mowers and snow throwers. It will decrease from 15% to 8% for products with a total sales price greater than $500.
FBA removal and disposal order fee changes
FBA removal fees are charged when an item is deemed unsellable in its current condition. This is the cost Amazon charges when those items are sent back to the seller to dispose of.
FBA Disposal fees are charged when an item is deemed unsellable in its current condition. Unlike removal order fees, which are charged when items are sent back to sellers, disposal fees are the cost Amazon charges to destroy the items for sellers.
For every product size (minus the smallest one), you can expect to see the Removal or Disposal order fees rise by over 2x the previous fee.
FBA Small and Light fee changes
This year, Amazon also updated fulfillment fees for small and light units. In general, the weight limit for FBA Small and Light was adjusted from 12 oz to 3 lb.
FBA prep and label service fee changes
These are bagging, labeling, and bubble-wrapping fees of 13-40% increases.
FBA New Selection program changes
Starting March 2022, Amazon will provide a monthly rebate of 5% on your sales of eligible new-to-FBA parent ASINs for brand owners who complete the Brand Registry.
While Amazon has always adjusted fees they are doing so more often, with less notice, and sometimes they are steep increases. The short notice can really affect how you set your pricing and your expectations for your margins.
One way to help you stay on top of your financials is with an ecommerce financial analysis tool like Sellers Signals. It not only allows you to track your revenues and expenses in a single intuitive report, but it also maps out what areas you need to focus on, all for free!
With tools like that available, there’s no reason to be guessing and hoping. Add in other tools like Sellers Signals Forecasting and you can tell if you’re on track to meet sales goals.
Amazon Sellers Can Still Win
SellersFunding is your growth partner as you navigate the challenges that go along with being an Amazon seller. Your business doesn’t have to be negatively affected when new costs occur. Check out this round-up of a few of our favorite resources full of tips that sellers use every day to improve their cash flow and protect their margins.
From Cash Flow to Inventory: How to Prep Your Store for a Killer Prime Day – SellersFunding
Break Free From Slow Marketplace Payouts For Better Sales & Cash Flow – SellersFunding
How Healthy Cash Flow Can Help You Win with Amazon Ads – SellersFunding
5 Tips to Supercharging Your Amazon FBA Business for any Retail Holiday – SellersFunding