Changes to Fulfillment by Amazon Shipping Fees
Amazon has announced major changes to FBA shipping fees again. Effective March 31, 2022, there are many new developments that we want to summarize for you in this article. In advance: It will not be easier to calculate shipping costs for a product in the future. Amazon has turned several adjustment screws.
New Weight and Shipping Classes
Amazon is changing the sizes of shipping envelopes and boxes. The large shipping envelope is reduced from 5 cm to 4 cm in height. In addition, a new "extra-large" envelope is being introduced, which will then go up to 6 cm in height.
Amazon is also introducing a new "small package" with maximum dimensions of 35 x 25 x 12 cm and a weight range of 150 grams to 3.9 kilograms.
Introduction of Volumetric Weight
Effective March 31, Amazon is introducing a new weight class. Amazon will then calculate the higher value of either unit weight or volumetric weight for oversized products to determine the product's weight class.
The volumetric weight in kilograms is calculated by length x width x height in cm³ divided by 5,000. Below you will find an example from Amazon:
The example shows a rather large but light box compared to an equally heavy but rather elongated box that is narrow and flat. The large and light box is moved to a heavier weight class using the volume formula.
Particularly large but at the same time light products will therefore be moved to a different size and weight class in the future and will thus become more expensive. This fits with Amazon's strategy of always packaging goods as space-saving and small as possible to save storage and transport space. More information in Seller-Central.
Price Increase in Shipping Costs
After the last significant FBA price increase in June 2021 of up to 8% for DE, the next one follows. For local and pan-European shipping, FBA shipping costs increase by an average of about 6%.
Standard sizes particularly affected by increase
Standard packages are particularly affected by the price increase (≤ 45 x 34 x 26 cm 150 g – 11.9 kg). Here, prices for local and PAN-EU shipping for Germany increase by an average of about 17.5%. The price increases in this area are also very similar for the remaining countries. In the UK, it's even about 19.2%.
Less affected are the areas of small oversize (≤ 61 x 46 x 46 cm 760g – 1.76 kg) and lighter standard oversize (≤ 120 x 60 x 60 cm up to 19.76 kg). Here, the price increases are mostly under one percent.
We have summarized the exact deviations from the current price list in the following table:
It should be noted that the new volumetric weight will also apply to products in standard size and oversize in the future, which we will address in the following.
New Prices and Package Sizes for "Small and Light"
For the Small and Light program, which is suitable for particularly inexpensive and small products that cost no more than 10 € in sales, there are also some changes. After a price increase already took place here last year, Amazon is increasing shipping costs here again. For Germany, the increase is an average of 12%. In other countries, this is sometimes slightly lower. Here are the changes to the new price list in the overview:
Amazon's new price list:
Amazon also distinguishes between envelopes with a maximum height of 4 cm and 6 cm in the future. In addition, small packages have now been added to the program. These may have maximum dimensions of 35 x 25 x 12 cm with 400g weight.
You can find the changes in Seller-Central.
"Penalty Fee" Reduced from 0.35 € to 0.25 €
For sellers who only store their FBA goods in Germany, there was previously a separate fee for each unit sold with FBA. This was 0.50 € in the past and currently 0.35 €. In the future, this will be reduced to 0.25 €. To avoid the fee, sellers must use the Central Europe program (storage in Czech Republic and Poland) or the PAN-EU program. However, both programs bring tax law hurdles. With the lower fee, it should become more attractive to store goods exclusively in Germany.
Remissions and Disposal Become More Expensive
Amazon is increasing the costs for FBA goods that are to be returned (remission) or disposed of by Amazon to sellers. In standard size, the cost for an item with 501g for a remission increases from 0.55 € to 0.78 €. Disposal in the same size and weight increases from 0.60 € to 0.90 €. Inventory can still be retrieved at the old costs by March 31, 2022, even if the goods should arrive later. You can find all prices in the following table:
Link to overview in Seller-Central.
New Storage Fees with FBA
Amazon is simultaneously increasing storage fees for all standard-size products, except dangerous goods. Standard-size fees increase in the period January to September from 15.60 € to 16.69 € (+1.09 €) per month and cubic meter.
More info in Seller-Central.
Surcharge for Old Inventory in Fulfillment by Amazon Warehouse
In addition to the current long-term storage fees for inventory that has been stored for more than 365 days, Amazon is introducing a further long-term storage fee for inventory that has been stored between 331 and 365 days. The additional fee is 37 € per cubic meter. For goods stored for more than 365 days, the fee remains at 170 € per cubic meter or 0.10 per unit, depending on which value is higher. Excluded from this are clothing, shoes, bags, luggage, watches, and jewelry.
More info in Seller-Central.
New Information on Brexit
Amazon will transport goods between the UK and the EU again from March 2022. In an email, Amazon recently announced that it will reactivate the European Shipping Network beyond the EU border. This means that local inventory stored on one side of the customs border can be sold to customers on the other side. For sellers who use PAN-EU, Amazon will prioritize shipping from local inventory. So either domestic shipping fees or fees for the European Shipping Network (EFN) apply.
Discount as Incentive
To support sellers after Brexit in selling between the EU and the United Kingdom, Amazon offers a 20% discount on European Shipping Network fees from the EU to the United Kingdom and vice versa for one year (starting March 31, 2022).
Discounts for Certain Product Groups
Amazon grants you further discounts regarding selling fees. The already running discount program for selling fees for clothing, shoes, and bags will be extended until March 31, 2023. This reduces the percentage selling fee from 15.0% to 7.0% for the portion of the total selling price over 45 €. The campaign was originally supposed to end on March 31, 2022. In addition, Amazon offers a 5% discount on the sale of eligible parent ASINs that are new to Fulfillment by Amazon for a limited time and quantity starting March 1, 2022. This discount applies to sellers who register for brand registration.
Conclusion – Rising Selling Prices
Amazon presents quite a lot of changes at once. On the one hand, costs are reduced, but then increased elsewhere. In between, there are special discounts for some product groups. These don't make it so easy to see through the already existing jungle of shipping and storage conditions.
A semi-annual price increase in storage and shipping of 6-8% seems to be becoming the rule at Amazon. Sellers should revise their calculation and adjust selling prices. We expect that prices on Amazon will rise significantly across Europe in the future, especially since production and delivery of goods are also consuming more and more costs. This should also further fuel inflation in Germany.
