2020 Amazon Referral Fee Changes

In 2019 Amazon invested more than $15 million in infrastructure, programs, people, and 150 new tools and services to help sellers grow their brand and businesses. Amazon has also invested billions to expand its Free One-Day- Delivery. This was the largest one-year investment that Amazon has ever made in FBA. The e-commerce giant says that they will remain committed to continue the success for sellers on the platform. In 2020, Amazon explains that it will only make moderate increases of about 3% in fulfillment fees, which is below the industry average. Select referral fees will also be decreased and Amazon will be adding a new selection program.

Fee Change Highlights

• US Referral Fees
  • Amazon will reduce the referral fee percentage for Shoe, Handbag & Sunglass products priced above $75 from 18% to 15%. The referral fee percentage will be reduced for outdoor furniture items from 15% to 10% on any portion of the total sales price above $200.
  • Amazon will reduce the referral fee percentage for personal care appliances from 15% to 8% for items with a total sales price of $10 or less. Items with a total sales price above $10 for the category will be unaffected.
  • Activewear clothing will be charged the referral fee percentage of 17% for the clothing category.
  • The Amazon Business tiered fee structure for total product values above $1,000 will be discontinued.
• US Fulfillment by Amazon Fees
  • Amazon will implement moderate increases in fulfillment fees, just over 3% on average.
  • Amazon will eliminate the $0.40 per-unit surcharge for clothing, and instead create a fee schedule specific to clothing items.
  • For Small and Light FBA, Amazon will consolidate the order handling, Pick & Pack, and weight-handling fees into a single per-unit fulfillment fee.
  • Monthly inventory storage fees from January to September will increase by $0.06 per cubic foot for standard-size items. According to Amazon, this change will first be reflected in April 2020 charges for storage that occurs in March 2020.
  • Amazon will charge per-unit fees by weight for removal and disposal fees.
  • Amazon will increase the fee for the optional FBA label service from $0.20 per unit to $0.30 per unit.

FBA New Selection Program

Last March, Amazon initiated a promotion offering free monthly storage and removals for new-to-Amazon ASINs, subject to limitations. Based on the success of the promotion, Amazon is creating a new program called the FBA New Selection Program.

• This new, enhanced program will offer:
  • Free monthly storage
  • Free removals
  • Free FBA returns processing for a limited time.
• Sellers new to FBA:
  • Inbound transportation discount.
  • Program is subject to limitations
  • Eligible sellers must opt-in
• New Program Launch:
  • The new program will launch April 1, 2020, in the US, Europe, and Japan.

Conclusion

With over $15 million invested in infrastructure, programs, people, and 150 new tools and services, Amazon remains committed to helping sellers grow their brand and businesses on the platform. In 2020, fulfillment fees will increase but will remain below the industry average of about 3%.

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