Is Your Business Ready for Amazon FBA Fee Changes?

It is essential to be aware of Amazon’s FBA Fees and Costs in order to inform your pricing and inventory management decisions. In 2023, Amazon updated FBA fees and costs due to increased fuel and fulfillment handling, as well as any inflationary forces occurring in the economy. To help you meet your business objectives, it’s crucial to understand these modifications.

 In this article, we will examine year-over-year changes for common FBA fees and costs like Fulfillment Fees, Storage Fees, Long Term Storage Fees, and Removal Fees. We’ll also provide some tips and advice on how to maximize your Amazon FBA profits in spite of the fee increases.

Amazon FBA Fee Timeline and Changes in 2023

  • 2023 FBA fulfillment fees for core FBA excluding apparel, apparel, and dangerous goods will take effect on January 17, 2023.
  • Referral fees will remain the same, but some categories such as Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards will be removed.
  • FBA outbound fee rates will increase by $0.22 on average and weight tiers will be introduced to reflect shipping costs.
  • A storage utilization surcharge will be implemented for sellers with a high cube of inventory relative to their recent weekly sales
  • Returns processing fee rates for customer-returned products in the Apparel and Shoes categories will be reduced by an average of $0.20 per return.
  • Off-peak storage fees will increase by $0.04 per cubic foot for standard-size products and $0.03 per cubic foot for oversized products.
  • Aged inventory surcharges will be introduced for inventory stored between 180-270 days, excluding products from Apparel, Shoes, Bags, Jewelry, and Watches categories.
  • Amazon is lowering fees for the U.S. FBA New Selection program by increasing rebates, expanding the Small and Light Program, and increasing the item price for eligible products.
  • Starting January 17, 2023, fees without a separate 5% fuel and inflation surcharge will apply.

    • Managing Profit Margins Amid the Price Changes

    Evaluate your inventory: Take a comprehensive look at all the items in your inventory, prioritize top-selling products, and discard items that have been sitting in your inventory without sales. Experiment with product bundles or subscription services to add cost-effective value for your readers.
    Monitor your money: Keep track of all fees associated with selling on Amazon FBA, and track expenses associated with your business. By doing so, you can have an accurate picture of where you stand and ensure that you stay within your budget.
    Adjust your prices: Analyze the impact of the fee changes on your pricing strategy. Adjust your prices accordingly to ensure that you maintain your desired profit margins while still remaining competitive in the marketplace.
    Leverage Amazon’s tools: Take advantage of Amazon’s tools to optimize your product listings, advertising campaigns, and inventory management. By doing so, you can increase your visibility, sales, and profitability on the platform.
    Explore new opportunities: Look for new opportunities to diversify your product offerings, expand into new categories, and explore new markets. By doing so, you can mitigate the impact of any potential price changes and stay ahead of the competition. competition.

    FBA fulfillment fee changes (excluding apparel)

    2022 Fulfillment Fee1 2023 Fulfillment Fee2
    Size tier Shipping weight Peak Fulfillment fee per unit Non-Peak Fulfillment Fee per unit Size tier Shipping weight Fulfillment fee per unit
    Small standard 6 oz or less $3.28 $3.07 Small standard 4 oz or less $3.22
    4+ to 8 oz $3.40
    6+ to 12 oz $3.43 $3.22 8+ to 12 oz $3.58
    12+ to 16 oz $3.98 $3.77 12+ to 16 oz $3.77
    Large standard 6 oz or less $4.03 $3.72 Large standard 4 oz or less $3.86
    4+ to 8 oz $4.08
    6+ to 12 oz $4.27 $3.96 8+ to 12 oz $4.24
    12+ to 16 oz $5.06 $4.75 12+ to 16 oz $4.75
    1+ to 2 lb $5.71 $5.40 1+ to 1.5 lb $5.40
    1.5+ to 2 lb $5.69
    2+ to 3 lb $6.60 $6.08 2+ to 2.5 lb $6.10
    2.5+ to 3 lb $6.85
    3+ lb to 20 lb $6.96 + $0.32/lb above first 3 lb $6.44 + $0.32/lb above first 3 lb 3+ lb to 20 lb $7.17 + $0.16/half-lb above first 3 lb
    Small oversize 70 lb or les $10.44 + $0.40/lb above first lb $9.39 + $0.40/lb above first lb Small oversize3 70 lb or less $9.73 + $0.42/lb above first lb
    Medium oversize 150 lb or less $15.99 + $0.46/lb above first lb $13.37 + $0.46/lb above first lb Medium oversize3 150 lb or less $19.05 + $0.42/lb above first lb
    Large oversize 150 lb or less $89.33 + $0.83/lb above first 90 lb $86.71 + $0.83/lb above first 90 lb Large oversize 150 lb or less $89.98 + $0.83/lb above first 90 lb
    Special oversize Over 150 lb $161.11 + $0.83/lb above first 90 lb $158.49 + $0.83/lb above first 90 lb Size tier Over 150 lb $158.49 + $0.83/lb above first 90 lb

    FBA fulfillment fees changes for apparel

    2022 Fulfillment Fee1 2023 Fulfillment Fee2
    Size tier Shipping weight Peak Fulfillment fee per unit Non-Peak Fulfillment Fee per unit Size tier Shipping weight Fulfillment fee per unit
    Small standard 6 oz or less $3.28 $3.07 Small standard 4 oz or less $3.22
    4+ to 8 oz $3.40
    6+ to 12 oz $3.43 $3.22 8+ to 12 oz $3.58
    12+ to 16 oz $3.98 $3.77 12+ to 16 oz $3.77
    Large standard 6 oz or less $4.03 $3.72 Large standard 4 oz or less $3.86
    4+ to 8 oz $4.08
    6+ to 12 oz $4.27 $3.96 8+ to 12 oz $4.24
    12+ to 16 oz $5.06 $4.75 12+ to 16 oz $4.75
    1+ to 2 lb $5.71 $5.40 1+ to 1.5 lb $5.40
    1.5+ to 2 lb $5.69
    2+ to 3 lb $6.60 $6.08 2+ to 2.5 lb $6.10
    2.5+ to 3 lb $6.85
    3+ lb to 20 lb $6.96 + $0.32/lb above first 3 lb $6.44 + $0.32/lb above first 3 lb 3+ lb to 20 lb $7.17 + $0.16/half-lb above first 3 lb
    Small oversize 70 lb or les $10.44 + $0.40/lb above first lb $9.39 + $0.40/lb above first lb Small oversize3 70 lb or less $9.73 + $0.42/lb above first lb
    Medium oversize 150 lb or less $15.99 + $0.46/lb above first lb $13.37 + $0.46/lb above first lb Medium oversize3 150 lb or less $19.05 + $0.42/lb above first lb
    Large oversize 150 lb or less $89.33 + $0.83/lb above first 90 lb $86.71 + $0.83/lb above first 90 lb Large oversize 150 lb or less $89.98 + $0.83/lb above first 90 lb
    Special oversize Over 150 lb $161.11 + $0.83/lb above first 90 lb $158.49 + $0.83/lb above first 90 lb Size tier Over 150 lb $158.49 + $0.83/lb above first 90 lb

    Fulfillment fee changes for dangerous goods

    2022 Fulfillment Fee1 2023 Fulfillment Fee2
    Size tier Shipping weight Peak Fulfillment fee per unit Non-Peak Fulfillment Fee per unit Size tier Shipping weight Fulfillment fee per unit
    Small standard 6 oz or less $4.25 $4.04 Small standard 4 oz or less $4.19
    4+ to 8 oz $4.48
    6+ to 12 oz $4.49 $4.28 8+ to 12 oz $4.64
    12+ to 16 oz $4.58 $4.37 12+ to 16 oz $4.37
    Large standard 6 oz or less $4.82 $4.50 Large standard 4 oz or less $4.64
    4+ to 8 oz $4.89
    6+ to 12 oz $5.06 $4.75 8+ to 12 oz $5.03
    12+ to 16 oz $5.66 $5.34 12+ to 16 oz $5.34
    1+ to 2 lb $6.31 $6.00 1+ to 1.5 lb $6.00
    1.5+ to 2 lb $6.29
    2+ to 3 lb $7.0 $6.54 2+ to 2.5 lb $6.56
    2.5+ to 3 lb $6.85
    3+ lb to 20 lb $7.42 + $0.32/lb above first 3 lb $6.90 + $0.32/lb above first 3 lb 3+ lb to 20 lb $7.63 + $0.16/half-lb above first 3 lb
    Small oversize 70 lb or les $11.19 + $0.40/lb above first lb $10.14 + $0.40/lb above first lb Small oversize3 70 lb or less $10.48 + $0.42/lb above first lb
    Medium oversize 150 lb or less $16.86 + $0.46/lb above first lb $14.24 + $0.46/lb above first lb Medium oversize3 150 lb or less $19.92 + $0.42/lb above first lb
    Large oversize 150 lb or less $101.26 + $0.83/lb above first 90 lb $98.64 + $0.83/lb above first 90 lb Large oversize 150 lb or less $101.91 + $0.83/lb above first 90 lb
    Special oversize Over 150 lb $181.90 + $0.83/lb above first 90 lb $179.28 + $0.83/lb above first 90 lb Size tier Over 150 lb $179.28 + $0.83/lb above first 90 lb

    Conclusion

    It’s clear that Amazon FBA fees are changing in 2023 and when the new fee structure is introduced, it’s important that businesses are prepared. Understand the different types of fees involved, review your existing contracts, and ensure that you have a plan in place to maximize your profit margins. By doing the proper research and taking steps to protect your business, you can ensure that your business is properly positioned to take advantage of the changes Amazon is making. At Cartkaboom, we understand the importance of effectively managing FBA fees to maximize our clients’ profitability on Amazon. Our team of experts closely monitors fee changes, helps our clients adjust their pricing strategies, and manages inventory levels to optimize FBA fees. By doing so, we help our clients stay competitive on the platform and maximize their profits.
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    Krystel Borg

    Krystel possesses a unique expertise in transforming company sales, thanks to her knack for devising strategic blueprints and fostering high-performing teams. Throughout her career, she’s been at the helm of businesses that have burgeoned from mere startups to eight-figure giants. She boasts two notable exits in the CPG sector, with one being the acclaimed Swander Pace Private Equity Group.
    Her profound understanding of product-centric ventures spans the entire lifecycle—from conceptualizing brands to overseeing logistics, supply chain management, and devising robust digital marketing initiatives. One of Krystel’s standout accomplishments in sales is her tenure with QVC, where she not only celebrated over 100 on-air appearances but also clinched a nomination for their coveted “Rising Star” award, sharing the limelight with industry titans like Sephora.
    With a proven track record of scaling startups to monumental heights—like achieving $1.5M in revenue within a year and subsequently doubling it—and salvaging firms from deficits to enjoy $1.8M profits, Krystel’s prowess is undeniable. She masterfully steered a company to emerge as an unrivaled leader in its sector by multiplying its sales from $4M to $18M in half a decade.
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    Navin Williams

    With 11 years of leadership experience in Business Management, Navin Williams has consistently delivered transformative results. His leadership has championed small businesses on their path to accelerated growth, steered large enterprises towards a surge in efficiency by up to 40%, and provided strategic direction to e-commerce companies navigating the dynamic digital marketplace.
    His toolkit of expertise encompasses spearheading organizational transformations, enhancing business agility, and driving process efficiency across a spectrum of domains and frameworks, with a particular emphasis on Lean principles. Understanding the unique challenges and opportunities presented by both brick-and-mortar operations and digital storefronts, Navin is adept at crafting strategies that align with specific business objectives.
    His commitment to rigorous reporting ensures transparency and data-driven decision-making, solidifying his reputation as a versatile and results-driven business leader.

    Jane Sampson

    Jane Sampson boasts over 15 years in the Apparel & Home Fashions sector. Throughout her career, she’s demonstrated a depth of knowledge in areas like Design, Product Development, Global Sourcing, and Market Research. Her business acumen is backed by a proven record in Procurement, Business Planning, and Sales.
    Central to Jane’s professional journey is JANEEN HOME LLC. This company, under her leadership, specializes in introducing new textures, designs, and prints for bedding and soft home lines. Her brand’s presence is felt in prominent retailers such as Macy’s, Ross Stores, Hobby Lobby, Bealls, and Belk.
    Beyond her corporate achievements, Jane shares her industry insights as an Adjunct Professor at Baylor University. She remains committed to fostering growth and nurturing future talents, ensuring they’re equipped for success in the dynamic world of Apparel & Home Fashions.

    Archana Reddy Williams

    From the corporate world to the dynamic world of Amazon, Archana’s journey has been nothing short of transformative. As a seasoned management consultant, corporate leader, and a 7-figure Amazon seller, she founded CartKaboom with a vision to demystify the Amazon maze for brands.
    What drives Archana? Her passion for ensuring every brand gets a fair shot at success on Amazon. CartKaboom works tirelessly as a partner, acting as a true extension of brands, ensuring they shine in the Amazon marketplace. While she cherishes working with all types of businesses, Archana’s heart holds a special place for family-owned and women-led brands. Drawing from a wealth of firsthand insights and tailored strategies, she’s had the honour of propelling many of these businesses to 7+ figure successes on Amazon.
    At the heart of CartKaboom, it’s not just about metrics. Archana delves deep into a brand’s narrative and core values, designing Amazon-focused strategies that amplify their presence. From listing enhancements and keyword optimization to effective advertising campaigns, Archana ensures that brands don’t just survive, but thrive in this ecommerce behemoth. Outside the world of ecommerce, Archana is active in real estate. As an Accredited Real Estate Investor and a CRE General Partner, she oversees diverse commercial real estate ventures, bringing the same dedication and business acumen to this vertical.
    At the core of it all, Archana’s faith in God and her family remain her pillars. She resides in Dallas, Texas with her husband and three kids. For relaxation and fun, she enjoys travelling, hiking, and exploring nature, seeing it as a reflection of God’s beauty. She’s also active in local church initiatives, emphasising community growth and unity.