Amazon FBA Fees 2022 – 6 Major Changes for Sellers
To keep up with the world’s ever-changing operational costs, Amazon typically changes its FBA (Fulfilment By Amazon) fees at the start of the new year. 2022 is no different as Amazon announced that the first hike of Amazon Seller Fees will start with FBA fulfillment fee changes effective January 18, 2022.
Amazon stated that their “fees remain 30% less expensive on average than if sellers were to fulfill orders on their own, providing FBA sellers with premium expedited fulfillment and delivery speed for lower than standard service prices.“
If you are a seller on Amazon, fees are an inevitable part of doing business on the platform. Even though you may be dissatisfied as a seller, all you can do is prepare for these changes.
At Marketplace Sorted, we are going to provide a quick and up-to-date recap of all the new FBA changes and everything you need to know to plan for the new Amazon fee 2022 increases.
1) FBA Fulfilment Changes
Amazon’s new fulfilment fees will see an average of 8% in increased costs when compared to the year before. This will particularly affect the following categories; core apparel, non-apparel, and dangerous goods. The other main thing that will change other than the increase in fees is how the fees are now calculated. Amazon will now start using “dimensional weight” when it is greater than the unit weight for oversized items.
What to consider:
Items that contain lithium and lithium batteries will still incur an additional charge of $0.11 per unit fee. The greater dimensional weight or unit weight will apply to large standard-sized units. Therefore, the dimensional weight will no longer apply to standard-sized units. Oversize apparel such as small oversize, large oversize, and special oversize will be charged core FBA fulfilment fees.
Dangerous Goods Fulfilment:
When it comes to the sale of dangerous goods, there are some significant fee changes. Locating marketing spending is likely among one of the biggest challenges facing the growing number of channels online. What is the solution? The solution is more integration with 3rd party tools and access to a platform decision filter.
2) FBA Monthly Storage Fee
The new monthly storage fees for sellers leveraging FBA will be announced in March 2022. Monthly storage fees during off-peak months such as July to September increased by a $0.08 charge per cubic foot for standard-sized products and a $0.05 charge per cubic foot for oversized products.
Monthly storage fees during peak months, typically October to December, will be the same as in 2021.
3) Aged Inventory Surcharge
For any units that are stored with Amazon for more than one year (365 days), Amazon already has a long-term storage fee. Starting on May 15, 2022, Amazon will charge an additional fee for units that are stored for longer than 271-365 days. This change will be a matter of a $1.50 charge per cubic foot.
4) Referral Fee Changes
There isn’t much to discuss in this section, remember that Amazon is changing its referral fees as of January 18th, 2022. Specifically, these fees will apply to outdoor products such as lawnmowers and snow blowers. These fees are reduced from 15% to 8% for all products with a sales price greater than $500. Find out more info about referral fee changes on Amazon Seller Central.
5) FBA Removal and Disposal Fees
Amazon’s removal and disposal fee changes will start on January 18th along with the majority of other fee changes. These fees are increasing by almost 70% which seems a lot, but the way FBA removal fees are calculated will be changing as well. Any order or request placed before the 18th will not have new fees applied.
6) FBA Small and Light Fee Changes
Lastly, Amazon has a couple of changes to how small and lightweight products are handled. On January 18th, 2022, the weight limit for small and light items will increase from 12 oz to 3lb. The greater unit weight and dimensional weight will apply when calculating the shipping weight for any standard or large-sized units. Smaller items on Amazon will use unit weight to determine the fees for FBA shipping.
At Marketplace Sorted, we know it can be difficult to keep up with the changes in FBA fees that Amazon applies yearly, especially when these changes greatly affect the products in your niche.
The best way to prepare for Amazon fees changes in 2022 is to proactively spot where your issues may come up and call the shots early. If you are not an Amazon FBM seller, the Amazon storage fee 2022 increases are enough for you to consider off-loading some of your storage costs outside of Amazon (especially for slower-moving units).
Additionally, create a plan of action for what you’ll do with units subject to cost you long-term storage fees and, or, eventually, removal and disposal fees. You may consider Amazon FBM as a solution to ensure that you can still sell and make a profit.
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