Amazon Update – FBA Fee Changes 2019

Have you forgotten about the email Amazon sent sometime back? There are no major changes though, here’s a summary at a glance to brush things up and prepare before time:

Fulfillment Fee w.e.f. February 19^th, 2019

This is the shipping fee charged to the customer and it is generally due to change in charges by UPS, Fedex, USPS etc.

No changes for small standard size and large standard size items under 10 Oz.
Expect a slight increase for other size tiers in future.
Oversized items will be charged w.r.t. dimensions and weight.
Products termed ‘dangerous’ or ‘hazardous’ with flammable, pressurized aerosol substances containing lithium-ion batteries will be treated separately.
You can avail 5% or 10% discount for each new product added to the program.

Storage Fee – w.e.f. February 15^th, 2019

These charges are applied if the product is not sold in 30 days.

Elimination of fee for units in fulfillment centers from 6 months to 1 year.
Continuation of long-term storage fees for units staying in the centers beyond 1 year.
Reduction in long-term storage fee from $0.50 to $0.15 per unit, applicable after January 15^th, 2019
From April 2019, expect a rise in monthly storage fees for product termed ‘dangerous’ containing flammable or pressurized aerosol substances reaching fulfillment centers in March 2019.
No effect on monthly storage fee for other products.

Referral Fee – w.e.f. February 19^th, 2019

This is the commission that Amazon charges its sellers ranging from 8% to 15% on their sales.

Beauty, Health & Personal Care & Baby Products (excluding Baby Apparel):
- $10 or less: Reduction from 15% to 8% in referral fee.
- Above $10: No change in referral fee i.e. 15%.
Grocery & Gourmet:
- $15 or less: Reduction from 15% to 8% in referral fee.
- Above $15: No change in referral fee i.e. 15%.
Jewelry & Watches:
- Reduction from $1 to $0.30 and $2 to $0.30 per item minimum fee across 30 categories.
- Reduction from 20% to 5% on items $250 & above for jewelry.
Furniture: Reduction from 15% to 10% for $200, excluding mattresses.