Amazon fees update May 2024

Elise Jackson

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  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon News
  • DATE: 10/05/2024

Amazon has been busy setting up new fees effective in mid-May 2024. Check out the new fee announcements here and if you have any questions don’t hesitate to reach out to us!

1. Update to UK Multi-Channel Fulfilment fees

As of May 16th, 2024, the Amazon Multi-Channel Fulfilment (MCF) fees in the UK will be updated to reflect the rising costs of fulfilment and transport within the UK. Amazon announced that:

1. The MCF fees will increase by 5.6% for sellers in the UK. The fee increase will affect each business differently and will depend on the mix of size and speed of your products. For example, size bands below 460g will not see an increase.
2. Six new small-parcel since bands (from 150g to 3.9kg) and one extra-large envelope size band will be introduced to better reflect the weight and dimensions of your products.

 

To get a breakdown of all the fee changes based on sizes you can visit the UK Multi-Channel Fulfilment 2024 fee updates.

 

2. Reduced referral fee for low-price clothing and accessories

From May 15th, 2024, Amazon has announced that it will reduce the referral fee for low-priced Clothing and Accessories. The change will enable sellers to offer a wider selection that are within those categories

The fee will be reduced from 15% to 8% for this category that is priced below £15 in the UK and €15 in Germany, France, Spain, the Netherlands and Belgium, and below SEK 175 in Sweden.

In Poland, the fee will be reduced from 10% to 8% for Clothing and Accessories that are priced below PLN 65.

All other referral fees for other category types will remain unchanged.

P.S. Wondering what the referral fee is? A referral fee is the fee Amazon charges you every time you sell a product.

 

3. Update on the transition period for the low-inventory-level fee in the US + more

On April 1st, the new Fulfilment by Amazon (FBA) low-inventory level fee went into effect, and Amazon announced that any fees charged in April would be credited back as part of a transition period for sellers.

Amazon announced that the transition period has been extended to May 14th, with any charges being credited back by May 31st.

This was to help sellers get used to the new fee structure and to enable you to achieve healthy inventory levels so that you can avoid this fee entirely!

 

Amazon has listened to feedback and implemented three changes to the fee:

1. Seasonality is unpredictable, which means inventory management is harder to manage. Starting May 15th 2024, the low inventory fee will not apply to products that have sold less than 20 units in the past 7 days.
2. Low-inventory-level fees incurred due to excessive inbounding and processing times caused by Amazon or Amazon-managed services will be credited back to you by the 15th day of the following month.
3. Prime Day is an important sales driver for so many sellers, so for Prime Day 2024 Amazon will provide a time-bound exception on low-inventory-level fees for products that are included in prime-exclusive Lightning Deals and Best Deals. The fee exception will apply for the four weeks following Prime Day when inventory levels may be more unpredictable!

 

Looking to track your inventory health? You can use the FBA Inventory to track the health of your inventory and identify your products at risk of incurring low-inventory-level fees.

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