Amazon’s Small and Light Program is officially closing at the end of August. The popular program allows brands to sell low-priced, small-sized, and lightweight products at discounted FBA rates.
Instead, Amazon will lower FBA rates for all items priced below $10. The change is designed to make it easier for selling partners to reduce FBA fees while still providing fast shipping to customers. The best part is brands don’t have to do anything. Eligible products will automatically receive the low-price rates and will not be subject to 2023 holiday peak fulfillment fees that will apply from October 15, 2023 through January 14, 2024.
Below is part of Amazon’s official announcement:
We have learned a great deal over the last few years, including how these lower fees have helped enable sellers to offer far more low-price selection to customers and how much customers value the continued improvements we have made in speed. As a result, we have decided to end the US FBA Small and Light program and instead lower the standard FBA rates for all low-price products.
With this change, we will close the Small and Light program in the US effective August 29, when the new low-price FBA rates go into effect. Until then, items enrolled in Small and Light will continue to have Small and Light rates applied. Enrollment of new products into the program will end after July 17.
We understand that changes to programs and fees can affect your business. To help prepare for this change, you’ll have approximately two months until the new lower FBA rates for low-price products take effect and the Small and Light program closes. We recommend that you review your product offerings, check your inventory status, and review the FBA rates to assess any changes.
Amazon Low-Price FBA Fees Effective August 29, 2023
The new FBA rates are about $0.77 lower per item than the current rates for these products but about $0.30 higher than the Small and Light Program rates. Below is the official breakdown of the new FBA fees for low-priced, small-sized, and lightweight products. All other standard Selling on Amazon fees and FBA fees still apply.
Channel Key Takeaway
Amazon’s new low-priced FBA fee structure is good news for most brands. On the one hand, FBA rates will increase slightly for products currently enrolled in Small and Light. However, FBA rates for all other eligible products on Amazon will drop automatically. This means if you have top-selling, low-priced items on Amazon that aren’t enrolled in Small and Light, you will enjoy a noticeable increase in revenue without having to do anything. Channel Key recommends reviewing your entire catalog to determine exactly how your FBA rates will change on August 29, 2023.
