What Sellers Should Know About Amazon’s New FBA Fees In 2022

Each year, Amazon announces changes to FBA seller fees that can seem more than a little confusing—particularly for new FBA sellers.

This year is no different. In fact, it’s to be expected. Between last year’s global supply chain disruptions and Amazon’s third-party marketplace share now estimated to be at 25 percent of the total US eCommerce market, the only thing that’s surprising about the changes to Amazon’s seller fee schedule is that they didn’t occur sooner.

Profit margins can be unpredictable on Amazon. And the slightest change to Amazon FBA fees can affect those margins significantly. Whether you’re a new FBA seller or a veteran, here’s what those changes can mean for your bottom line.

Changes to Amazon FBA Fulfillment Fees

As of January 18, 2022, Amazon FBA fulfillment fees are going to be particularly affected, with core non-apparel fees seeing the most significant change:

  • Small standard fulfillment fees for core non-apparel items are going to see the greatest increase, with the entire tier seeing an 8.1 percent hike for domestic sellers.

  • While large standard fulfillment fees for FBA are also affected, they can be somewhat more manageable. Items weighing 6 ounces or less are seeing as little as a 2 percent increase, while items between 3 to 20 lbs can expect to see an increase of 7.9 percent.

  • The increase in oversized flat fees is to be expected. However, medium oversized packages are seeing the most significant with $1.36 being added to the initial flat fee rate and an additional $0.05 added for each additional pound.

That’s simply for one category of changes to Amazon FBA fulfillment fees. Sellers should ultimately be aware that these changes will affect already thin profit margins—in particular, lighter and low-margin products.

Remember, that any change in your pricing strategy can also affect your sales volatility as well as your Amazon IPI threshold. However, that doesn’t necessarily mean that high volume products can expect to see a dip in sales. Consumer expectations for price surcharges began well before January 18th on virtually all non-essential goods. However, it does mean that FBA sellers should plan accordingly and measure your ultimate net-profits against your change in sales traffic.

Source: Amazon Seller Central

Amazon FBA Storage and Removal Fee Changes

Changes to fulfillment fees are just one factor affecting Amazon FBA sellers in 2022. Not only will existing storage fees increase as of February 1, but a new long-term storage surcharge may leave many sellers reconsidering their sales strategy on Amazon altogether.

Starting February 1, 2022, the monthly inventory storage fees for Amazon FBA sellers during off-peak seasons from January - September will be increased by $0.08 per cubic foot for standard-size products. and $0.05 per cubic foot for oversize products. Technically, that’s not too drastic of a difference compared to 2021’s fees:

Source: Amazon Seller Central

There’s just one catch. Starting May 15,2022 Amazon will be introducing a new “aged inventory surcharge” of $1.50 per cubic foot to units which have been stagnant in FBA fulfillment centers for 271 to 365 days. And for units which have been dormant for 365 days or more?

The cost is now $6.90 per cubic foot. That’s in addition to changes in Amazon’s schedule for FBA removal and disposal order fees—changes which can be up to 114 percent in some cases:

Source: Amazon Seller Central

It’s not a question of penalization that’s motivating these changes. It’s a question of the availability of space. In 2021, Amazon Marketplace had over six million sellers globally representing over $30 Billion in sales. And the demand for FBA services is at an all-time high. Inventory management isn’t exclusively the domain of brands. It’s just as applicable to their sales channels as well.

Learning to optimize visibility on Amazon can be difficult enough. Learning how to plan for inventory accordingly can be a never-ending struggle.

Color More Lines provides white glove, global account management of Amazon, Walmart, and other eCommerce platforms so mission-driven companies can focus on new product development, branding and growth strategies. Find out more at Color More Lines.

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