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To keep up with the world’s ever-changing operational costs, Amazon typically changes its FBA fees at the start of the new year. 2022 is no different as the company announced that it will announce updated FBA fees, effective January 18th. In their recent notes, Amazon stated that their “fees remain 30% less expensive on average than if sellers were to fulfill orders on their own, providing FBA sellers with premium expedited fulfillment and delivery speed for lower than standard service prices.”
Today, Bobsled’s FBA research expert Zlatana Pejovic will provide a quick and up-to-date recap of all the new FBA fee changes. Staying apprised of Amazon’s major yearly shifts is an important part of Bobsled’s omnichannel seller strategy that has been recognized by the Inc. 5000 list and Business Insider. We want our clients’ brands to get the edge over their competitors in 2022 by keeping up with key financial shifts on Amazon.
Amazon FBA Fee Changes - Breakdown for 2022
Amazon’s annual fee changes can be overwhelming to look at all at once, leading many potential sellers to feel compelled to move their brands off of Amazon entirely. But before giving up on your omnichannel strategy, take a look at the changes one section at a time. We’ve separated this breakdown into 6 parts:
- FBA Fulfillment Fees Changes
- Monthly Storage Fees Changes
- Aged Inventory Surcharge
- Referral Fee Changes
- FBA Removal and Disposal Fees
- FBA Small and Light Fee Changes
After discussing Amazon’s FBA fee changes of 2022, we will share our most recent FBA fees calculator - a great tool that quickly highlights the FBA fees of any product on Amazon.
1. FBA Fulfillment Changes
Amazon’s new fulfillment fees will see an average of 8% in increased costs when compared to the year before. This will particularly affect the core apparel, non-apparel, and dangerous goods categories on Amazon. The main difference - other than the increase in fees - is the way these fees are now calculated. For dangerous goods and other core FBA items, Amazon will start using “dimensional weight” when it is greater than the unit weight for oversized items.
Non-Apparel Fees
A before-and-after comparison for the new non-apparel FBA fees can be seen below:
Above: Screenshot from Amazon Seller Central
What to Consider:
Lithium batteries and items that contain lithium will still incur an additional $0.11 charge per unit fee.
Dimensional weight will no longer apply to standard-sized units.
The greater unit weight or dimensional weight will apply to large standard-sized units.
Apparel Fees
Some of the apparel fees have changed as well. Here’s a breakdown of what to expect with the new fees:
Above: Screenshot from Amazon Seller Central
What to Consider:
Oversize apparel tiers (such as small oversize, large oversize, and special oversize) will be charged core FBA fulfillment fees.
Dangerous Goods Fulfillment
Lastly, there are some significant fee changes when it comes to the sale of dangerous goods:
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Above: Screenshot from Amazon Seller Central
2. FBA Monthly Storage Fee
Coming in March of 2022 are new monthly storage fees for sellers leveraging FBA. Monthly storage fees during off-peak months (typically July - September) are increased by $0.08 per cubic foot for standard-sized products and $0.05 per cubic foot for oversized products.
Monthly storage fees during peak months (October - December) will be the same that they were in 2021.
Above: Screenshot from Amazon Seller Central
3. Aged Inventory Surcharge
There’s already a long-term storage fee in place for any units that are stored with Amazon for more than 1 year (365 days). Starting on May 15, 2022, there will be an additional fee for units that are stored for longer than 271 - 365 days. This change will be a matter of $1.50 per cubic foot for any units that are stored for that number of days or longer.
Above: Screenshot from Amazon Seller Central
4. Referral Fee Changes
There isn’t much to discuss in this section, but it is still important to remember that Amazon is changing its referral fees as of January 18th, 2022. Specifically, these fees will apply to outdoor products like lawnmowers and snow blowers. These fees are reduced from 15% down to 8% for all products that have a sales price greater than $500. Find out more info about this change on Amazon Seller Central.
Want to save money on fees while prioritizing the best shipping strategy for your brand? Check out Amazon Prime Fulfillment Strategies: SFP Vs. FBA!
5. FBA Removal and Disposal Fees
Amazon’s removal and disposal fee changes are going to take place on January 18th along with the majority of other fee changes. These fees are increasing by almost 70% - which seems like a lot - but the way FBA removal fees are calculated will be changing as well. Any order or request that is placed prior to the 18th will not have the new fees applied.
Here’s a visual breakdown of the changes categorized by size tier:
Above: Screenshot from Amazon Seller Central
Above: Screenshot from Amazon Seller Central
6. FBA Small and Light Fee Changes
Lastly, Amazon has a couple of changes to the way small and lightweight products are handled. On January 18th, 2022, the weight limit for small and light items will be increased from 12 oz to 3lb. The greater between unit weight and dimensional weight will apply when calculating the shipping weight for any standard or large-sized units. Smaller items will always use unit weight to determine the fees for FBA shipping.
Above: Screenshot from Amazon Seller Central
Check Out Our New FBA Fees Calculator
Bobsled is proud to offer its sellers the option to use our free, totally automated FBA Fees Calculator developed by Bobsled's Finance Specialist Sergey Flid. The Calculator will help you to instantly determine the fees on any item you might want to sell on Amazon. This is an especially helpful tool for those who are making the transition from being a Vendor to being a full Seller on Amazon.
It can be difficult to keep up with the yearly FBA fees changes that Amazon applies across the board, especially when it greatly affects the products in your niche. Stay up to date on your margins and use our free calculator to discover fees for thousands of products at the same time. Although fees are changing, FBA is a strongly recommended shipping method for brands taking an omnichannel approach to selling online. If you are looking for more ways to foster eCommerce success, reach out to our team at Bobsled today!
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Tagged: Amazon Account Management
