New 2017 Fulfillment by Amazon U.S. Fee changes
So Amazon.com has brought up yet another challenge or should i say problem for sellers by increasing fee of FBA. Whether its benefiting sellers or not, you decide. Below is the complete message provided my amazon:
FBA fees in the U.S. will be adjusted to reflect the changing costs of storage, fulfillment, transportation, and customer service. The new rates will not take effect until February 22, 2017, or later. In addition to updating our storage and fulfillment fees, FBA is introducing the following changes:
- Consolidation of Fulfillment Fees: Effective February 22, 2017, the Order Handling, Pick & Pack, and Weight Handling fees will be consolidated into a single, per-unit Fulfillment Fee. For more information, see FBA Fulfillment Fees, below.
- Alignment of Q4 Fulfillment Fees: Effective October 1, 2017, we will reduce the Fulfillment Fee for all items shipped in October. October Fulfillment Fees will be consistent with Fulfillment Fees in November and December. For more information, see FBA Fulfillment Fees, below. With the reduction in Fulfillment Fees, if you reduce the storage space you use in October, you have the opportunity to pay lower total FBA fees in October.
- Alignment of Q4 Monthly Inventory Storage Fees: Effective October 1, 2017, the Monthly Inventory Storage fee for October will be increased for standard-size and oversize items to be consistent with the Monthly Inventory Storage fees for November and December. For more information, see Monthly Inventory Storage fees, below.
- Change to Seller Shipment Requirements: Effective July 19, 2017, Amazon will increase how often you are asked to send items to multiple destinations when creating your shipping plan. For each shipping plan, you may choose to follow Amazon’s guidance or use the Inventory Placement Service, which gives you the option to ship to fewer destinations. A per-item service fee applies when you use the Inventory Placement Service. The fee depends upon the number of destinations you choose. For more information, see Inventory Placement Service fees, below.
- Higher Fees for Media products: Effective February 22, 2017, Fulfillment Fees for Media items will be increased to match the increase in Fulfillment Fees for Non-Media items, and Media and Non-Media items will be consolidated into a single standard-size tier.
- Elimination of Zero-Fee Fulfillment: Effective February 22, 2017, the Zero-Fee Fulfillment discount for standard-sized items that sell for $300 or more will be discontinued. Fees based on the product size tier will apply.
FBA Fulfillment Fees
Effective February 22, 2017, Order Handling, Pick & Pack, and Weight Handling fees will be consolidated into a single, per-unit Fulfillment Fee. In addition, Fulfillment Fees for Media items will be increased to be the same as the Fulfillment Fees for Non-Media items, and Media and Non-Media items will be consolidated into a single standard-size tier.
Effective October 1, 2017, we will reduce the Fulfillment Fee for all items shipped in October. October Fulfillment Fees will be consistent with Fulfillment Fees in November and December. For more information, see FBA Fulfillment Fees, below. With the reduction in Fulfillment Fees, if you reduce the storage space you use in October, you have the opportunity to pay lower total FBA fees in October.
Effective February 22, 2017, Order Handling, Pick & Pack, and Weight Handling fees will be consolidated into a single, per-unit Fulfillment Fee. In addition, Fulfillment Fees for Media items will be increased to be the same as the Fulfillment Fees for Non-Media items, and Media and Non-Media items will be consolidated into a single standard-size tier.
Effective October 1, 2017, we will reduce the Fulfillment Fee for all items shipped in October. October Fulfillment Fees will be consistent with Fulfillment Fees in November and December. For more information, see FBA Fulfillment Fees, below. With the reduction in Fulfillment Fees, if you reduce the storage space you use in October, you have the opportunity to pay lower total FBA fees in October.
Monthly Inventory Storage Fees
Effective March 1, 2017, the monthly inventory storage fee for standard-size items will increase from $0.54 per cubic foot to $0.64 per cubic foot. This fee applies to standard-size items stored in fulfillment centers during the months of January through September. The fee for oversize units stored during these months will not change.
Effective October 1, 2017, the monthly inventory storage fee for October will be increased for standard-size and oversize items to be consistent with the monthly inventory storage fees for November and December. On the same date, we will also reduce the Fulfillment Fee for all items shipped in October to be consistent with fulfillment fees in November and December.
Effective March 1, 2017, the monthly inventory storage fee for standard-size items will increase from $0.54 per cubic foot to $0.64 per cubic foot. This fee applies to standard-size items stored in fulfillment centers during the months of January through September. The fee for oversize units stored during these months will not change.
Effective October 1, 2017, the monthly inventory storage fee for October will be increased for standard-size and oversize items to be consistent with the monthly inventory storage fees for November and December. On the same date, we will also reduce the Fulfillment Fee for all items shipped in October to be consistent with fulfillment fees in November and December.
Inventory Placement Service Fees
Effective July 19, 2017, Amazon will increase how often you are asked to send items to multiple destinations when creating your shipping plan. For each shipping plan, you may choose to follow Amazon’s guidance or use the Inventory Placement Service, which gives you the option to ship to fewer destinations. A per-item service fee applies when you use the Inventory Placement Service. The fee depends upon the number of destinations you choose.
Product examples
The following product examples help illustrate the new FBA fee structure.
Small standard-size (1 lb. or less)
Mobile device case
Dimensions: 13.8" x 9.0" x 0.7"
Unit weight: 0.18 lb.
Outbound shipping weight: 1 lb.
Prior to February 22, 2017 Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) January–October $2.56 November–December $2.53
Effective February 22, 2017 Fulfillment Fee (per-unit total) January–September $2.41 October–December $2.39
Large standard-size (1 lb. or less)
T-shirt
Dimensions: 8.5" x 5.8" x 1"
Unit weight: 0.35 lb.
Outbound shipping weight: 1 lb.
Prior to February 22, 2017 Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) January–October $3.42 § November–December $3.28 §
Effective February 22, 2017 Fulfillment Fee (per-unit total) January–September $3.39 § October–December $3.28 §
§For applicable clothing products, the Pick & Pack fee is an additional $0.40 per unit. To find out if your products are subject to the additional charge, please check the FBA Revenue Calculator (sign-in required) or the Fee Preview Report (sign-in required).
Large standard-size (over 2 lb.)
Iron
Dimensions: 12.6" x 6.6" x 5.5"
Unit weight: 3.35 lb.
Outbound shipping weight: 4 lb.
Prior to February 22, 2017 Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) January–October $4.79 November–December $4.42
Effective February 22, 2017 Fulfillment Fee (per-unit total) January–September $4.96 October–December $4.66
Small oversize
Baby cot
Dimensions: 25" x 8" x 7"
Unit weight: 7.05 lb.
Outbound shipping weight: 10 lb.
Prior to February 22, 2017 Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) January–October $9.27 November–December $8.74
Effective February 22, 2017 Fulfillment Fee (per-unit total) January–September $9.97 October-December $9.49
Large oversize
Monitor
Dimensions: 53.3" x 33" x 6.8"
Unit weight: 48.45 lb.
Outbound shipping weight: 50 lb.
Prior to February 22, 2017 Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) January–October $72.38 November–December $64.97
Effective February 22, 2017 Fulfillment Fee (per-unit total) January–September $75.06 October–December $69.50
Effective February 22, 2017, the Zero-Fee Fulfillment discount for standard-size items that sell for $300 or more will be discontinued. Fees based on the product size tier will apply.
Zero-Fee Fulfillment for items over $300
Video game console
Dimensions: 16.9" x 11.4" x 4.4"
Unit weight: 8.9 lb.
Outbound shipping weight: 10 lb.
Prior to February 22, 2017 Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) January–October $0.00 November–December $0.00
Effective February 22, 2017 Fulfillment Fee (per-unit total) January–September $7.30 October–December $6.76
Clothing items will continue to incur an additional $0.40 per-unit Fulfillment Fee. Fees for FBA Prep Services, returns, and disposals are not affected and will continue to apply where applicable. Multi-Channel Fulfillment fees will not change at this time.
The following product examples help illustrate the new FBA fee structure.
| Small standard-size (1 lb. or less) | |
|---|---|
| Mobile device case
Dimensions: 13.8" x 9.0" x 0.7"
Unit weight: 0.18 lb.
Outbound shipping weight: 1 lb.
|
| Prior to February 22, 2017 | |
| Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) | |
| January–October | $2.56 |
| November–December | $2.53 |
| Effective February 22, 2017 | |
| Fulfillment Fee (per-unit total) | |
| January–September | $2.41 |
| October–December | $2.39 |
| Large standard-size (1 lb. or less) | |
|---|---|
| T-shirt
Dimensions: 8.5" x 5.8" x 1"
Unit weight: 0.35 lb.
Outbound shipping weight: 1 lb.
|
| Prior to February 22, 2017 | |
| Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) | |
| January–October | $3.42 § |
| November–December | $3.28 § |
| Effective February 22, 2017 | |
| Fulfillment Fee (per-unit total) | |
| January–September | $3.39 § |
| October–December | $3.28 § |
§For applicable clothing products, the Pick & Pack fee is an additional $0.40 per unit. To find out if your products are subject to the additional charge, please check the FBA Revenue Calculator (sign-in required) or the Fee Preview Report (sign-in required).
| Large standard-size (over 2 lb.) | |
|---|---|
| Iron
Dimensions: 12.6" x 6.6" x 5.5"
Unit weight: 3.35 lb.
Outbound shipping weight: 4 lb.
|
| Prior to February 22, 2017 | |
| Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) | |
| January–October | $4.79 |
| November–December | $4.42 |
| Effective February 22, 2017 | |
| Fulfillment Fee (per-unit total) | |
| January–September | $4.96 |
| October–December | $4.66 |
| Small oversize | |
|---|---|
| Baby cot
Dimensions: 25" x 8" x 7"
Unit weight: 7.05 lb.
Outbound shipping weight: 10 lb.
|
| Prior to February 22, 2017 | |
| Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) | |
| January–October | $9.27 |
| November–December | $8.74 |
| Effective February 22, 2017 | |
| Fulfillment Fee (per-unit total) | |
| January–September | $9.97 |
| October-December | $9.49 |
| Large oversize | |
|---|---|
| Monitor
Dimensions: 53.3" x 33" x 6.8"
Unit weight: 48.45 lb.
Outbound shipping weight: 50 lb.
|
| Prior to February 22, 2017 | |
| Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) | |
| January–October | $72.38 |
| November–December | $64.97 |
| Effective February 22, 2017 | |
| Fulfillment Fee (per-unit total) | |
| January–September | $75.06 |
| October–December | $69.50 |
Effective February 22, 2017, the Zero-Fee Fulfillment discount for standard-size items that sell for $300 or more will be discontinued. Fees based on the product size tier will apply.
| Zero-Fee Fulfillment for items over $300 | |
|---|---|
| Video game console
Dimensions: 16.9" x 11.4" x 4.4"
Unit weight: 8.9 lb.
Outbound shipping weight: 10 lb.
|
| Prior to February 22, 2017 | |
| Order Handling, Pick & Pack, and Weight Handling fees (per-unit total) | |
| January–October | $0.00 |
| November–December | $0.00 |
| Effective February 22, 2017 | |
| Fulfillment Fee (per-unit total) | |
| January–September | $7.30 |
| October–December | $6.76 |
Clothing items will continue to incur an additional $0.40 per-unit Fulfillment Fee. Fees for FBA Prep Services, returns, and disposals are not affected and will continue to apply where applicable. Multi-Channel Fulfillment fees will not change at this time.
2016 FBA improvements
We remain dedicated to providing high value to our sellers. Here's a look at some of the improvements to FBA in 2016:
- FREE Same-Day Delivery: Prime members in more than 750 cities and towns across 27 metro areas can now receive FREE Same-Day Delivery on qualifying orders. Unlimited Free Two-Day Shipping continues to be available to U.S. Prime members on more than 30 million items across all product categories.
- Subscribe & Save: FBA sellers have the opportunity for repeat sales from this self-service program that allows Amazon customers to sign up for regular deliveries of products they use frequently in exchange for a price discount.
- Inventory planning tools: The Inventory Dashboard in your seller account has expanded to help you view products that may be overstocked, understocked, or subject to long-term storage fees. For more information, see Inventory Dashboard.
- Pan-European FBA: With the launch of this program in Europe, it is now easier for you to build your international business by selling across all Amazon European marketplaces while shipping your inventory to just one destination. Your products are then distributed across Europe to provide fast delivery to customers.
- More Partnered Carrier options: We’ve added FedEx to our Partnered Carrier program, which gives you access to ground-shipping services at discounted rates when you send inventory to a U.S. fulfillment center from a U.S. location (excluding Alaska and Hawaii).
We remain dedicated to providing high value to our sellers. Here's a look at some of the improvements to FBA in 2016:
- FREE Same-Day Delivery: Prime members in more than 750 cities and towns across 27 metro areas can now receive FREE Same-Day Delivery on qualifying orders. Unlimited Free Two-Day Shipping continues to be available to U.S. Prime members on more than 30 million items across all product categories.
- Subscribe & Save: FBA sellers have the opportunity for repeat sales from this self-service program that allows Amazon customers to sign up for regular deliveries of products they use frequently in exchange for a price discount.
- Inventory planning tools: The Inventory Dashboard in your seller account has expanded to help you view products that may be overstocked, understocked, or subject to long-term storage fees. For more information, see Inventory Dashboard.
- Pan-European FBA: With the launch of this program in Europe, it is now easier for you to build your international business by selling across all Amazon European marketplaces while shipping your inventory to just one destination. Your products are then distributed across Europe to provide fast delivery to customers.
- More Partnered Carrier options: We’ve added FedEx to our Partnered Carrier program, which gives you access to ground-shipping services at discounted rates when you send inventory to a U.S. fulfillment center from a U.S. location (excluding Alaska and Hawaii).
Frequently asked questions
When do these changes take effect?
The following changes take effect on February 22, 2017:
- Consolidated Fulfillment Fee begins
- Single standard-size product tier begins
- Media fees will be the same as Non-Media fees
- Zero-Fee Fulfillment ends
Beginning July 19, 2017, you can choose how many shipment destinations you want to ship your inventory to. Take advantage of the destinations recommended by Amazon at no extra charge, or pay a per-item fee to use Amazon's Inventory Placement Service.
Beginning October 1, 2017, peak (Q4) monthly storage and Fulfillment Fees will be the same as the fees for November and December.
The following changes take effect on February 22, 2017:
- Consolidated Fulfillment Fee begins
- Single standard-size product tier begins
- Media fees will be the same as Non-Media fees
- Zero-Fee Fulfillment ends
Beginning July 19, 2017, you can choose how many shipment destinations you want to ship your inventory to. Take advantage of the destinations recommended by Amazon at no extra charge, or pay a per-item fee to use Amazon's Inventory Placement Service.
Beginning October 1, 2017, peak (Q4) monthly storage and Fulfillment Fees will be the same as the fees for November and December.
When are inventory storage fees charged?
Inventory storage fees are charged each month, typically between the 7th and 15th day of the month following the month of storage. For example, if you want to see the inventory storage fee you paid for January, refer to the February settlement report that includes the transactions from February 7-15.
Inventory storage fees are charged each month, typically between the 7th and 15th day of the month following the month of storage. For example, if you want to see the inventory storage fee you paid for January, refer to the February settlement report that includes the transactions from February 7-15.
How do I determine what product size tier my product belongs to?
Use the product size tier table (sign-in required) to determine your product's size tier.
Use the product size tier table (sign-in required) to determine your product's size tier.
Why are storage rates higher for standard-size products than for oversize products?
Although standard-size products are often smaller than oversize products, they require more complex and costly shelving, drawers, and bins for storage. Fees are charged by cubic foot, however, which means that standard-size products overall storage fee may be less than that of oversize products, based on volume.
Although standard-size products are often smaller than oversize products, they require more complex and costly shelving, drawers, and bins for storage. Fees are charged by cubic foot, however, which means that standard-size products overall storage fee may be less than that of oversize products, based on volume.
Why will Fulfillment Fees for Media and Non-Media be the same?
Effective February 22, 2017, the Fulfillment Fees for Media items will be increased to match the Fulfillment Fees for Non-Media items. The cost for Amazon to fulfill a Media item is similar to the cost to fulfill Non-Media items. We are updating our fees to reflect our costs.
Effective February 22, 2017, the Fulfillment Fees for Media items will be increased to match the Fulfillment Fees for Non-Media items. The cost for Amazon to fulfill a Media item is similar to the cost to fulfill Non-Media items. We are updating our fees to reflect our costs.
Will this fee change affect Multi-Channel Fulfillment?
No. Multi-Channel Fulfillment fees (sign-in required) will not change at this time.
No. Multi-Channel Fulfillment fees (sign-in required) will not change at this time.
Will this fee change affect Zero-Fee Fulfillment?
Yes. Zero-Fee Fulfillment (sign-in required) will be discontinued as of February 22, 2017. Fees based on the product size tier will apply.
Yes. Zero-Fee Fulfillment (sign-in required) will be discontinued as of February 22, 2017. Fees based on the product size tier will apply.
Will this fee change affect items in the FBA Small and Light program?
No. FBA Small and Light program (sign-in required) rates will not change at this time.
No. FBA Small and Light program (sign-in required) rates will not change at this time.
I have questions not addressed here. How can I get help?
If you've reviewed these fee change details and have additional questions, please contact Seller Support. If you do not have questions but would like to send the FBA team your feedback on this fee change, please e-mail us-fba-fee-announce-feedback@amazon.com. The Fulfillment by Amazon team will review feedback sent to this address.
For more information, see Fulfillment fees for Amazon.com orders (sign-in required).
If you've reviewed these fee change details and have additional questions, please contact Seller Support. If you do not have questions but would like to send the FBA team your feedback on this fee change, please e-mail us-fba-fee-announce-feedback@amazon.com. The Fulfillment by Amazon team will review feedback sent to this address.
For more information, see Fulfillment fees for Amazon.com orders (sign-in required).
Glossary
Small standard-size
Large standard-size
Any packaged item that is 20 lb. or less with its longest side 18" or less, its shortest side 8" or less, and its median side 14" or less.
Any packaged item that is 20 lb. or less with its longest side 18" or less, its shortest side 8" or less, and its median side 14" or less.
Small oversize
Any packaged unit that is 70 lb. or less with its longest side 60" or less, its median side 30" or less, and its longest side plus girth 130 inches or less.
Any packaged unit that is 70 lb. or less with its longest side 60" or less, its median side 30" or less, and its longest side plus girth 130 inches or less.
Medium oversize
Any packaged unit that is 150 lb. or less with its longest side 108" or less, and its longest side plus girth 130" or less.
Any packaged unit that is 150 lb. or less with its longest side 108" or less, and its longest side plus girth 130" or less.
Large oversize
Any packaged unit that is 150 lb. or less with its longest side 108" or less, and its longest side plus girth 165" or less.
Any packaged unit that is 150 lb. or less with its longest side 108" or less, and its longest side plus girth 165" or less.
Special oversize
Any packaged unit that exceeds one or more of the following: Over 150 lb. (dimensional weight or unit weight), over 108" on its longest side, or over 165" when longest side is added to girth. In addition, products that we determine require special handling or delivery will qualify for Special Oversize.
Any packaged unit that exceeds one or more of the following: Over 150 lb. (dimensional weight or unit weight), over 108" on its longest side, or over 165" when longest side is added to girth. In addition, products that we determine require special handling or delivery will qualify for Special Oversize.
Median side
The dimension of a product that is neither the longest nor the shortest side.
The dimension of a product that is neither the longest nor the shortest side.
Girth
A unit measure, equivalent to 2 x (median side + shortest side).
A unit measure, equivalent to 2 x (median side + shortest side).
Unit weight
The weight of an individual unit.
So there you have it. BEHOLD , THE END OF SELLER MAKING GREEN WITH FBA...
Now they are going to bleed Green and choke to death with it.
How freakin funny is this !!!
Amazon has made more changes to their FBA fee structure in the past year than the past 3 years combined. Everything from increased storage fees for the holidays, to foregoing the 1 unit per ASIN exemption for long term storage fees.If amazon could have spent some time in making things easy for sellers in terms of coming up with new ways to improve the business shape favoring sellers, making them some nickle and dime and fixing the issues faced in seller central and also stop new scammers, it could have been a heaven for sellers. Seems to me its not a place for small business sellers anymore using FBA.
The weight of an individual unit.
So there you have it. BEHOLD , THE END OF SELLER MAKING GREEN WITH FBA...
Now they are going to bleed Green and choke to death with it.
How freakin funny is this !!!
Amazon has made more changes to their FBA fee structure in the past year than the past 3 years combined. Everything from increased storage fees for the holidays, to foregoing the 1 unit per ASIN exemption for long term storage fees.If amazon could have spent some time in making things easy for sellers in terms of coming up with new ways to improve the business shape favoring sellers, making them some nickle and dime and fixing the issues faced in seller central and also stop new scammers, it could have been a heaven for sellers. Seems to me its not a place for small business sellers anymore using FBA.