Attention, retailers: If you’re currently using Fulfillment by Amazon (FBA) in the US, get ready for a slight price increase in 2015. Starting in February, Amazon will be adjusting its FBA service rates to reflect the changing costs of fulfillment, transportation and customer service. The rate changes will be rolled out in a phased approach through August.
- February 18, 2015: Pick & Pack and weight handling feeds will increase across all product sizes and weights. Additionally, for heavier and larger products, Amazon will use dimensional weight — which is equivalent to the unit’s cubic volume (length x width x height in inches) divided by 166 — to determine fulfillment fees. Previously, dimensional weight was used only when oversize units reached a certain threshold. Now it will be used when the dimensional weight for small, medium or large oversize units is greater than the unit weight.
The increased FBA fulfillment fees are calculated and charged when shipments leave Amazon fulfillment centers. Meaning, if a product is ordered prior to February 18, 2015, but is shipped on or after February 18, 2015, the new FBA fulfillment fees will apply.
*Effective February 18, 2015, for all small, medium and large oversize units, Amazon will use dimensional weight to determine both fulfillment fees and fees for the optional inventory placement service if dimensional weight is greater than the unit weight.
- March 1, 2015: Monthly inventory storage fees will increase for standard-size units and decrease for oversize units.
The FBA monthly storage fees that take effect March 1, 2015 apply to all products stored in Amazon fulfillment centers, even if that inventory was sent to Amazon fulfillment centers prior to March 1, 2015. The new fees will appear on your April payments report.
- August 15, 2015: Long-term storage feeds are currently assessed semi-annually on February 15 and August 15 on units that have been in Amazon fulfillment centers for 12 months or more. On August 15, 2015, units that have been in Amazon fulfillment centers between 6 and 12 months will also be subject to the long-term storage fee, at a rate of $11.25 per cubic foot. Units that have been in the center for 12 months or more will continue to incur the long-term storage fee of $22.50 per cubic foot.
On a positive note, this rate change will not affect Amazon’s Multi-Channel Fulfillment or Zero-Fee Fulfillment.
For more information about Amazon’s FBA fee change, visit the official site here.
Blog post by Jordan Nowlin, social media and blog manager, ChannelAdvisor