04
March
By giving sellers a stage through which they can consistently interface with a huge number of clients around the world, Amazon has upset the internet business area by introducing new FBA Fees structure.
In any case, late adjustments to Amazon’s FBA fees estimation have started causing concern among various vendors concerning their benefits. In this blog post, we can identify the pristine FBA costs that will result in 2024 and examine their potential impact on vendors’ bottom lines.
1. Increased FBA Storage Fees
One of the significant modifications that will take effect in 2024 is an increase in FBA storage fees.
Amazon is implementing these costs to inspire dealers to ship their inventory extra regularly, as it costs Amazon money to store and maintain inventory for prolonged periods.
Previously:
- Standard-size product categories: $0.69 per cubic foot per item per month
- Oversize product categories: $2.40 per cubic foot per object per month
Newly applied:
- Standard-size product classes: $0.99 per cubic foot per item per month
- Oversize product classes: $3.45 per cubic foot per object per month
2. Additional FBA Prep Service Fees
Amazon is also introducing additional FBA prep service charges to assist dealers in preparing their inventory for fulfillment.
These fees cover the cost of time and resources spent preparing objects, including removing packaging, labeling, and bagging.
Previously:
- Standard-size product classes: $0.30 per object
- Oversize product classes: $0.45 per object
Newly applied:
- Standard-size product categories: $0.35 per item
- Oversize product categories: $0.50 per object
3. FBA Receiving Fee
The FBA charge is intended to take care of the expense of getting and reviewing stock that vendors ship off Amazon’s distribution centers.
In the past, this fee was part of the FBA garage fees. Now, it will be its charge.
Previously:
- Standard-size product categories: $0.50 per cubic foot
- Oversize product categories: $2.40 per cubic foot
Newly applied:
- Standard-size product categories: $0.70 per cubic foot
- Oversize product categories: $3.45 per cubic foot
4. FBA Cancellation Rate
In 2024, Amazon could introduce a cancellation rate for sellers who cancel their FBA orders once they have been received and processed by Amazon.
This fee aims to prevent sellers from abusing the FBA software by canceling orders at the last minute.
Previously:
$0
Newly applied:
$0.50 per item
Summary
Fee Type |
Change in 2024 |
|---|---|
| Monthly Storage Fees | Reduced by $0.09 per cubic foot during non-peak periods (January-September) |
| Inbound Placement Fees | Introduced new fees for inventory distribution across fulfillment network |
| Low-Inventory-Level Fee | New fee charged when sellers fail to maintain sufficient inventory levels |
| Storage Utilization Surcharge | Changes to surcharges based on storage overstock compared to demand |
| Inbound Defect Fees | Introduced inbound defect fees for shipments sent to different locations |
| Removal, Disposal, and Liquidation Fees | Increased removal and disposal fees, while liquidation fees remain unchanged |
| FBA Prep Service Fees | Most fees remain unchanged, with adjustments for fragile/glass items |
| Returns Processing Fee | Expanded to apply to high return-rate products in all categories except apparel and shoes |
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