Amazon Fee Changes 2021: Significant Fee Updates

The ongoing distribution of COVID-19 vaccines worldwide in a way signifies that the global community is on the path back to normalcy. In view of such a positive update, Amazon is scheduled to implement Amazon fee changes this coming June 1, 2021. The annual fee changes had been put on hold due to the pandemic. The company chose to postpone the Amazon fee updates for the US marketplace to provide stability and support amidst the uncertainty created by the global health crisis that has dramatically affected businesses worldwide. As a testament to Amazon’s support to the eCommerce community and on behalf of the Amazon sellers, the company absorbed over $5 billion in COVID-related expenses in 2020 and an additional billion more in the first half of 2021. 

Amazon Fee Changes in 2021 | Summary

In line with the Amazon fee changes, Amazon announced that the fee increase would be about 2-3% on average. This increase, according to Amazon, is a modest increment that is in line or even below the industry averages. 

Contrary to the fee increase, Amazon will also reduce specific Amazon fees, including the returns’ processing fee. These reduced fees serve as Amazon’s response to sellers’ feedback and their continued efforts to reduce costs.

In terms of the Amazon referral fees, there are no major changes in 2021. Important updates for Amazon referral fees are centered on the Personal Computers, Personal Computers, and Veterinary Diets categories. 

Significant Amazon FBA Fee Updates 

 

FBA Fulfillment Fee                           

The US FBA fulfillment fee changes for 2021 cover the core FBA fulfillment fee, fulfillment fees for apparel, and dangerous goods. Below are the before and after tables showcasing Amazon fulfillment fee changes. 

  • Core FBA Fulfillment Fee Changes (Excluding Apparel) 

Amazon Seller Central: A screenshot (cropped of) US FBA Fulfillment Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3t2fqGe      

  

The table above shows the fee changes for core FBA fulfillment. However, not shown on the table is the additional $0.11 per-unit fulfillment fee for Lithium batteries and products that contain as such.    

Moving forward, items previously in the 1+ to 2 lb size tier will be categorized under the 12+ to 16 oz tier (small standard – $3.32, large standard – $4.25). Such updates resulted from the removal of the packaging weight adjustments.

  • FBA Fulfillment Fee Changes for Apparel

Amazon Seller Central: A screenshot (cropped of) US FBA Fulfillment Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3t2fqGe      

 

Fulfillment fees are also observed across the board for Apparel goods. And like the core FBA fulfillment, an additional fulfillment fee of $0.11 per unit will also be observed for Lithium batteries and items containing such batteries.

Items under the Apparel category that were previously in the 1+ to 2 lb size tier are now under the 12+ to 16 oz tier (small standard – $3.62, large standard – $4.65). 

  • Fulfillment Fee Changes for Dangerous Goods   

Amazon Seller Central: A screenshot (cropped of) US FBA Fulfillment Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3t2fqGe      

 

For hazardous materials or hazmat categorized under dangerous goods, changes are shown in the table above. The fee increase covers the fulfillment fee, including storage of hazardous materials and special handling. 

Additionally, for apparel and non-apparel dangerous goods, separate rates have been removed.      

FBA Program Fee

Concerning program fees, products sold within the Amazon Renewed program come with a Renewed program fee. As for cellular phone devices and unlocked phones, a 2% charge is added on top of the standard category referral fees. Other renewed items will be charged 1%.

FBA Returns Processing Fee

  • Watches, Jewelry, Luggage, Handbags, and Sunglasses

Amazon Seller Central: A screenshot (cropped of) US FBA Returns Processing Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3dTbAcm

       

Amazon sellers will largely benefit from the FBA returns processing fee changes in 2021. Amazon has decided to remove the returns’ processing fee for items under the Sunglasses, Handbags, Luggage, Watches, and Jewelry categories. 

  • Apparel and Shoes

Amazon Seller Central: A screenshot (cropped of) US FBA Returns Processing Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3dTbAcm

 

Although not eliminated, the returns’ processing fee under the Apparel and Shoes categories has been reduced. Worth noting as well that for orders returned before June 1, 2021, the new Amazon fees mentioned above will not be applied. The old Amazon FBA returns’ processing fee still governs. 

FBA Fee Changes for Removals, Disposals, and Manual Processing Fee 

  • FBA Removal and Disposal Order Fee Changes

Amazon Seller Central: A screenshot (cropped of) US Removal and Disposal Order Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3mDQ3YS

  • FBA Manual Processing Fee Changes

Amazon Seller Central: A screenshot (cropped of) US Removal and Disposal Order Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3mDQ3YS

 

As highlighted in the tables above, an increase in FBA removal, disposal, and manual processing fees will be implemented on June 1, 2021. 

Amazon sellers should also take note that included in the special handling are items under the apparel, shoes, watches, jewelry, and dangerous goods categories. Additionally, the fee changes mentioned above also apply to the Small and Light program.

FBA Small and Light Fee 

 

Amazon Seller Central: A screenshot (cropped of) US FBA Small and Light Fee Changes, Retrieved April 9, 2021, From https://amzn.to/3dZiooE

 

As seen in the table above, fee changes will also be implemented in the FBA Small and Light program. Starting June 1, 2021, the said program’s weight limit increase will be updated from 10 to 12 oz.

Moreover, the shortest side’s size limit has been increased to 8 inches from the previous 4 inches. Simultaneously, the size limit for the longest and median sides was likewise increased, from 16 to 18 inches and from 9 to 14 inches, respectively.  

While packaging weight adjustment to Amazon’s rate card calculation has been removed, the optional FBA Label Service will continue to have a $0.10 per unit charge for Small and Light inventories.   

Final Thoughts 

The upcoming Amazon fee changes are relatively minimal. However, you should take time to examine these fee increases in relation to your profit margin. The use of Amazon seller tools like an Amazon FBA calculator and an Amazon repricer can help you manage the upcoming changes successfully.


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