In the spirit of Christmas cheer, Amazon have announced FBA fee increases effective Feb. 22, 2018.
And they’ve made it hard to compare to the current fees in the way they’ve rolled this out. I’m sure that wasn’t deliberate though. *sarcasm*
The Bad News:
- Fulfillment fees are increasing for almost every size category.
- Large standard size is increasing by 14.2%
- Medium Standard Size items increasing about 7.7%
- Large Standard Size (2 lbs or more) about an 11% increase
- Small oversize is increasing by 16.6% (ouch!)
- Items that are dimensionally weighted are going up on average by 23%
- Standard size items are going up (items that don’t exceed 18″ x 14″ x 8″ and weight less 20 lbs or less)
The Good News:
- They’re no longer going to be charging peak and non peak fulfillment rates
- Storage fees aren’t going up as of yet. Though they typically announce these separately – (likely sometime early next year)
- Small Standard Size, Medium Oversize, Large Oversize and Special Oversize fees are pretty much unchanged
What Does This Mean For You?
- Take a hard look at your current inventory, and future potential purchases. And likely avoid items that are dimensionally weighted.
- Next, look at how the new fees affect your margins
- Don’t ignore this. Or you’ll end up potentially losing money
The reality is, Amazon increase their fees every year. They took a $5 Billion hit on shipping last year and they’re looking to curb these costs. If ever there was a time to source for small and light weight products, it’s now. So figure that into your sourcing strategy.
Want to learn how to source for profitable, wholesale inventory and get ahead of the curve on this? Check out my Wholesale Mastermind.
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