Amazon regularly introduces changes to their FBA fulfilment fees in line with changes in the industry. In 2021, the platform introduced some significant changes to its fulfilment fees as a result of the COVID-19 pandemic, which in turn benefitted both buyers and sellers. Throughout the pandemic, Amazon ensured that any changes to the FBA fees were as low as possible, even removing some fees such as for customer returns.
As a testament to Amazon’s support to the eCommerce community and on behalf of the Amazon sellers, the company absorbed over $5 billion in COVID-related expenses in 2020 and an additional billion more in the first half of 2021. After this, the company decided to introduce changes to FBA fulfilment fees to partially offset the higher permanent operating costs.
“Throughout the pandemic, we have worked to support you – postponing and keeping fee changes low, reducing or eliminating select fees like those for customer returns, and absorbing billions of dollars in increased costs on your behalf – all while making significant and necessary investments in people, technology, transportation and infrastructure. As you’ve seen widely reported in the press and have likely experienced yourselves, costs are rising and we now need to make adjustments to this year’s fee structure in response. We will adjust our fees to partially offset the higher permanent operating costs we face going forward.”*
This year, Amazon has introduced significant changes in core FBA fulfilment fees, which started to take effect from January 18, 2022.
You may already be aware of the changes to FBA fulfilment fees that were introduced in March 2022 and for some brands, it’s nothing to sweat about. For others, it is already having an effect on profit margins.
Here are the key FBA fulfilment fee adjustments introduced:
- 5% fuel and inflation surcharge will be applied to FBA fulfilment fees in the US
- A fee increase of 4.3% has been applied to UK, Germany, France, Italy and Spain
*Full update from Amazon within seller central here.
Has your brand suffered from the increase in fees? Our brand strategists can help. Get in touch with us today to see how we can help you jump Amazon’s hurdles and sparkle on the platform.