Amazon has announced numerous fee changes that will impact FBA sellers in 2023. Of course, some of these updates are more important than others. For your convenience, Channel Key has filtered through various Amazon press releases, emails, and forum posts to summarize the most important fee changes slated to take effect in the new year.
FBA Fulfillment Fee Changes (excluding apparel)
Amazon is creating more granularity in its FBA fees to better align with its underlying costs. Their goal is to drive improved inventory health, more efficient use of storage, and create more capacity for sellers who are using space efficiently. This includes five main areas:
- An increase in FBA outbound fees
- An increase in the monthly off-peak storage fee (January to September)
- A new storage utilization surcharge for sellers who have a high cube of inventory
- An increase in the surcharges applied to inventory stored between 271-365 days
- An increase in removal and disposal fees
These 2023 FBA fee changes (excluding apparel) will take effect on January 17, 2023. The greater 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. The table below summarizes the new fee calculations:
FBA Aged Inventory Surcharge Changes
Starting April 15, 2023, Amazon will increase the granularity and magnitude of the aged inventory surcharge (previously known as the long-term storage fee) on inventory stored between 271 to 365 days. Amazon will also introduce new tiers to begin the aged inventory surcharge on inventory aged 181 to 270 days for all products except items listed under the clothing, shoes, bags, jewelry, and watches categories in the US. Amazon will continue to charge an aged inventory surcharge for units stored for more than 365 days.
FBA Monthly Storage Fee Changes
Starting February 1, 2023, Amazon will increase off-peak monthly inventory storage fees (January-September) by $0.04 per cubic foot for standard-size products and $0.03 per cubic foot for oversize products. This change will first be reflected in March 2023 charges for storage that occurs in February 2023. Starting October 1, 2023, peak monthly inventory storage fees (October-December) will increase by $0.20 per cubic foot for oversize products. This change will first be reflected in November 2023 charges for storage that occurs in October 2023. There is no change to peak monthly inventory storage fees for standard-size products.
2023 FBA 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
2023 FBA Removal and Disposal Order Fee Changes
The adjusted removal and disposal order fees shown below take effect on January 17, 2023:
Channel Key Takeaway:
The fee changes announced for 2023 are another sign that Amazon is becoming increasingly competitive. The company has stated that these updates are designed to better serve customers while providing sellers with a stronger platform. According to Amazon, its fulfillment fees will remain an average of 30% less expensive than standard-shipping methods offered by other major third-party logistics providers, and an average of 70% less expensive than comparable two-day shipping alternatives. As with any fulfillment fee increase, Channel Key recommends that brands review these changes carefully to better prepare for success on Amazon in 2023.