Amazon has announced that it will be changing its Fulfillment by Amazon (FBA) fees in 2023. The new fees will take effect on January 17, 2023, and will apply to all products shipped to Amazon fulfillment centers in the United States.
Overall FBA costs are going up, key callouts include…
Referral Fees: Unchanged
Fuel & Inflation Surcharge: Recently introduced fuel surcharge will be set into FBA fees.
- Starting January 17, 2023, fees without a separate 5% fuel and inflation surcharge will apply.
New Selection Program Fees: Decreased
Small and Light Program Fees: Reduced (Amazon is expanding item price eligible products from $10 or less to $12 or less)
FBA Outbound Fee Rates: Increased by an average of $0.22
- More granular weight tiers for FBA outbound fees
- Change will take effect on February 16, 2023.
Removal Fees and Storage Fees: Increased
- Storage fees increased by around 10%
- 6 month long term storage fees are back
Liquidation Fees: Unchanged
Returns Processing Fee Rates (Apparel): Decreased
- Reduced fee for customer-returned products in the Apparel and Shoes categories by an average of $0.20 per return
Storage Fees for Standard and Oversize
- Amazon will increase the monthly off-peak storage fee (January to September) for standard-size products by $0.04 per cubic foot and oversized products by $0.03 per cubic foot. Amazon will increase Peak storage fees (October to December) for their non-sortable network by $0.20 per cubic foot, while those for our sortable network will remain unchanged.
- See all changes to storage fees here.
2023 FBA Fee Changes (Excluding Apparel)
The greater of unit weight or dimensional weight will be used to calculate the shipping weight for all large standard-size and oversize units, except for special oversize. For more information, go to the Calculate the shipping weight section of this page.
2023 FBA Fee Changes for Apparel
The greater of unit weight or dimensional weight will be used to calculate the shipping weight for standard items more than 0.75 pounds and oversize, except for special oversize. Starting on February 16, 2023, the greater of unit weight or dimensional weight will be used to calculate the shipping weight for all large standard-size and oversize units, except for special oversize. For more information, go to the Calculate the shipping weight section of this page.
Fulfillment Fee Changes for Dangerous Goods
The 2023 US Fulfillment by Amazon fees for dangerous goods will take effect on January 17, 2023. FBA has separate fulfillment fees for dangerous goods (also known as hazardous materials or hazmat) that require special handling and storage. For more information, go to FBA Dangerous Goods program and Dangerous goods identification guide.
2022 vs 2023
The first step in preparing for the FBA fee increase is understanding how your margins will be impacted. Adjust your profit margin analysis with the new FBA fees to calculate your new net profit margin.
Small and Light Fee Changes
On January 17, 2023, the following FBA Small and Light program fee changes will take effect:
- The item price for eligible products will increase from $10 or less to $12 or less
- Size tiers for small standard and large standard 1 lb and under will be divided into 4 oz increments
- Size tiers for large standard over 1 lb will be divided in 0.5 lb increments
Conclusion
Every time Amazon increases fees, it’s time for Amazon sellers to take stock of ASIN profitability, product pricing, and target margins.
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