Amazon Policy Changes

US FBA and Referral Fee Changes Coming February 2019

Post by
Kyle Herman

You all got it. The email from Amazon announcing fee changes for 2019. It’s the one you know is important but have procrastinated opening, knowing Amazon is at it again. Nickel and diming their third-party sellers.

Well I’ve got good news. Although there are some increases going into effect this year, Amazon is actually making quite a few decreases in many areas. This is a short, to the point summary of what’s happening with Amazon fees in 2019.

FBA Fee Changes

FBA fees for standard size items 10 oz or less aren’t changing. This is good for those selling small items. If you don’t, you’re looking at an approximate 3% increase on your FBA fees.

Don't panic. In most cases this is $0.05 to $0.09 per unit for small and large standard size items. Fees for large standard size items do go up $0.17 and the highest increase applies to large oversize coming in at $2.60 more per unit.

If you sell dangerous goods, panic. Amazon is really putting the screws to the goods classified as dangerous. Especially if they are small standard size. The fees for this size tier are raising 35% to 43%. We’re talking a buck a unit more in FBA fees on small standard size items.

Things start to look up for dangerous goods as the items get larger. Once you get over 1 lb the fees increase by about 11% which is still high compared to the 3% non-dangerous goods are seeing. In most cases you’re looking at $0.61 more per unit until you get into large oversize which increases by $13.96 or 19%.

Aside from a simpler Subscribe & Save fee structure and a dimensional weight calculation targeted at large thin items like tvs, this is the gist of 2019 FBA fee changes. These changes are effective February 19th, 2019.

Storage Fee Changes

Now for the good news. Long-term storage fees for units at a fulfillment center for 181 to 365 are gone. Amazon is also reducing minimum long-term storage fees from $0.50 per unit to $0.15 per unit. Monthly storage fees for most products also remain unchanged from 2018.

Too good to be true, right? Only if you sell dangerous goods. Storage fees for dangerous goods are raising by approximately 50% in Q1-Q3 and doubling on oversized items in Q4. This translates to $0.30 more per cubic foot during Q1-Q3 and $1.23 more in Q4. These changes begin in March and will be billed in April.

Referral Fee Changes

Although Amazon clearly has plans to capitalize on those selling dangerous goods in 2019, they are sparing some categories through reduced referral fees. Beauty, Health & Personal Care, and Baby products will all see a referral fee reduction of 15% to 8% on items selling for $10 or less.

This is similar to the promotion Amazon has ran in grocery for the past year and half, 15% to 8% on items with a sales price of $15 or less. Good news for anyone selling food. This will continue in 2019.

The furniture and jewelry categories are also getting relief with referral fee discounts on sales reaching a certain dollar amount. Furniture sales over $200 will receive a 5% referral fee concession on the portion that exceeds $200. Jewelry items get an even bigger 15% discount on revenue exceeding $250 on a sale.

Finally, Amazon is reducing the per-item minimum fee across 30 categories from $1 to $0.30 per item and from $2 to $0.30 per item for jewelry and watches.

Wrapping Things Up

This wraps things up for fee changes in 2019. The big takeaways are:

  1. Expect to see a 3% increase on FBA fees
  2. If you sell dangerous goods you’ll be paying significantly more in FBA and storage fees
  3. Expensive jewelry and furniture along with inexpensive health, beauty, and baby products will make out in 2019 with reduced referral fees.

We wish you a prosperous 2019 and happy selling. Contact us with any questions or for help with these upcoming changes.

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