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FBA fee changes coming in February 2018

Blog Post created by gennyr Employee on Dec 20, 2017

Amazon sellers received notice this week of upcoming changes to FBA fees. You can view the changes below and here in Seller Central.

 

2018 Fulfillment by Amazon U.S. fee changes

As in previous years, FBA fees in the U.S. will be adjusted to reflect the changing costs of fulfillment, transportation, and customer service. The new fulfillment fees will take effect on February 22, 2018. We're notifying you now to give you time to plan for these changes.

FBA is introducing the following changes:

  • Fulfillment Fees: We will adjust our fulfillment fees for most product size tiers and weights. The adjusted fees will apply throughout the year, and we will no longer have a separate rate for October through December. For more information, see FBA Fulfillment Fees below.
  • Dimensional Weight Calculation: We are adjusting the way we calculate dimensional weight to align with current industry standards. Currently, dimensional weight is calculated as the unit volume (based on length x width x height in inches) divided by 166. Effective February 22, 2018, we will calculate dimensional weight as the unit volume (based on length x width x height in inches) divided by 139 (instead of 166). The dimensional weight is only applicable for large standard-size items weighing more than 1 lb. and all small, medium, and large oversize items.

 

FBA inventory storage fees are not changing at this time. We will announce changes to these fees in early 2018.

 

FBA Fulfillment Fees

 

The adjusted FBA fulfillment fees shown below will take effect on February 22, 2018. The adjusted fees will apply throughout the year, and we will no longer have a separate rate for October through December.

Starting February 22, 2018, we will calculate dimensional weight as the unit volume (based on length x width x height in inches) divided by 139 (instead of 166, as it was previously). The dimensional weight is only applicable for large standard-size items weighing more than 1 lb. and all small, medium, and large oversize items. Please note that dimensional weight is also used to calculate fees for Multi-Channel Fulfillment and the Inventory Placement Service.

 

Prior to February 22, 2018February 22, 2018 and after
Standard-sizeJanuary - SeptemberOctober - DecemberYear-round Rates
Small (1 lb. or less)$2.41$2.39$2.41
Large (1 lb. or less)$2.99$2.88$3.19
Large (1 lb. to 2 lb.)$4.18$3.96$4.71
Large (over 2 lb.)$4.18 +$0.39/lb. above first 2 lb.$3.96 +$0.35/lb. above first 2 lb.$4.71 +$0.38/lb. above first 2 lb.

 

OversizeJanuary - SeptemberOctober - DecemberYear-round Rates
Small Oversize$6.85 +$0.39/lb. above first 2 lb.$6.69 +$0.35/lb. above first 2 lb.$8.13 +$0.38/lb. above first 2 lb.
Medium Oversize$9.20 +$0.39/lb. above first 2 lb.$8.73 +$0.35/lb. above first 2 lb.$9.44 +$0.38/lb. above first 2 lb.
Large Oversize$75.06 +$0.80/lb. above first 90 lb.$69.50 +$0.76/lb. above first 90 lb.$73.18 +$0.79/lb. above first 90 lb.
Special Oversize$138.08 +$0.92/lb. above first 90 lb.$131.44 +$0.88/lb. above first 90 lb.$137.32 +$0.91/lb. above first 90 lb.
Add $0.40 per unit for clothing items

 

Product Examples

 

The following product examples help illustrate the new FBA fee structure.

Small standard-size (1 lb. or less)

 

Mobile device case

Dimensions: 13.8" x 9.0" x 0.7"

Unit weight: 0.18 lb.

Outbound shipping weight: 1 lb.

Prior to February 22, 2018
Fulfillment fee (per-unit total)
January–September$2.41
October–December$2.39

 

February 22, 2018 and after
Fulfillment fee (per-unit total)
Year-round Rates$2.41
Large standard-size (1 lb. or less)

 

T-shirt

Dimensions: 8.5" x 4.8" x 1"

Unit weight: 0.35 lb.

Outbound shipping weight: 1 lb.

Prior to February 22, 2018
Fulfillment fee (per-unit total)
January–September$3.39*
October–December$3.28*

 

February 22, 2018 and after
Fulfillment fee (per-unit total)
Year-round Rates$3.59*

*All clothing items will continue to incur an additional $0.40 per-unit fulfillment fee regardless of size tier.

Large standard-size (over 2 lb.)

 

Iron

Dimensions: 12.6" x 6.6" x 5.5"

Unit weight: 3.35 lb.

Outbound shipping weight: 4 lb.

Prior to February 22, 2018
Fulfillment fee (per-unit total)
January–September$4.96
October–December$4.66

 

February 22, 2018 and after
Fulfillment fee (per-unit total)
Year-round Rates$5.47
Small oversize

 

Baby cot

Dimensions: 24" x 7.5" x 6"

Unit weight: 7.90 lb.

Outbound shipping weight: 9 lb.

Prior to February 22, 2018
Fulfillment fee (per-unit total)
January–September$9.58
October–December$9.14

 

February 22, 2018 and after
Fulfillment fee (per-unit total)
Year-round Rates$10.79
Large oversize

 

Monitor

Dimensions: 54" x 35" x 3.5"

Unit weight: 41 lb.

Outbound shipping weight: 49 lb.*

Prior to February 22, 2018 
Dimensional weight: 39.85 lb.

Fulfillment fee (per-unit total)
January–September$75.06
October–December$69.50

 

February 22, 2018 and after 
Dimensional weight: 47.59 lb.

Fulfillment fee (per-unit total)
Year-round Rates$73.18

*Based on a dimensional weight of 47.59 lb., which is greater than the unit weight.

Fees for Small and Light and FBA Prep Service will not change at this time.

 

2017 FBA Improvements

 

We remain dedicated to providing high value to our sellers. Here’s a look at some of the improvements to FBA in 2017:

  • Even Faster Free Shipping: We offer Prime FREE One-Day Shipping and Same-Day Delivery in more than 5,000 cities, including pickup on millions of items at campus locations. Unlimited FREE Two-Day Shipping continues to be available to U.S. Prime members on more than 50 million items across all product categories.
  • International Selling Tools: The Build International Listings tool has expanded to enable FBA sellers who have linked their accounts to replicate Amazon and seller-fulfilled offers and synchronize pricing across North America, Europe, and Japan.
  • SKU Performance: The new SKU performance feature allows easy access to product sales, pricing, and inventory performance data with a single click of any SKU link on the Manage Inventory and Excess Inventorypages, or simply enter your SKU in the Seller Central search bar.
  • Inventory Performance: The new Inventory Performance Index metric aggregates data from your sales, inventory, and costs to measure the overall growth and efficiency of your FBA business. Based on this metric, we provide you with three specific steps to help increase your score: restock recommendations, excess inventory suggestions, and stranded inventory actions. See your Inventory Performance Index score.

 

Frequently Asked Questions

 

When do these changes take effect?

The new fulfillment fees will take effect on February 22, 2018. The adjusted fees will apply throughout the year, and we will no longer have a separate rate for October through December.

Starting February 22, 2018, we will calculate dimensional weight as the unit volume (based on length x width x height in inches) divided by 139 (instead of 166, as it was previously). The dimensional weight is only applicable for large standard-size items weighing more than 1 lb. and all small, medium, and large oversize units. Please note that dimensional weight is also used to calculate fees for Multi-Channel Fulfillment and the Inventory Placement Service.

Will the FBA fulfillment fee changes apply to products ordered before February 22, 2018?

The FBA fulfillment fees are calculated and charged when shipments leave Amazon fulfillment centers. As a result, if a product is ordered prior to February 22, 2018, but is shipped on or after February 22, 2018, the new FBA fulfillment fees will apply.

How do I determine what product size tier my product belongs to?

Use the product size tier table to determine your product's size tier.

Will this fee change affect Multi-Channel Fulfillment or the Inventory Placement Service?

The rates for the Multi-Channel Fulfillment program and the Inventory Placement Service are not changing at this time. However, please note that dimensional weight is also used to calculate fees for both Multi-Channel Fulfillment and the Inventory Placement Service, and the way we calculate dimensional weight is changing.

Starting February 22, 2018, we will calculate dimensional weight as the unit volume (based on length x width x height in inches) divided by 139 (instead of 166, as it was previously). The dimensional weight is only applicable for large standard-size items weighing more than 1 lb. and all small, medium, and large oversize items.

Will this fee change affect items in the FBA Small and Light program?

No. FBA Small and Light program rates will not change at this time.

I have questions not addressed here. How can I get help?

If you've reviewed these fee change details and have additional questions, please contact Seller Support. If you do not have questions but would like to send the FBA team your feedback on this fee change, please e-mail fba-fee-announce-feedback@amazon.com. The Fulfillment by Amazon team will review feedback sent to this address.

For more information, see Fulfillment fees for FBA orders.

 

Glossary

 

Small standard-size

Any packaged item that is 12 oz. or less with its longest side 15" or less, its shortest side 0.75" or less, and its median side 12" or less.

Large standard-size

Any packaged item that is 20 lb. or less with its longest side 18" or less, its shortest side 8" or less, and its median side 14" or less.

Small oversize

Any packaged unit that is 70 lb. or less with its longest side 60" or less, its median side 30" or less, and its longest side plus girth 130 inches or less.

Medium oversize

Any packaged unit that is 150 lb. or less with its longest side 108" or less, and its longest side plus girth 130" or less.

Large oversize

Any packaged unit that is 150 lb. or less with its longest side 108" or less, and its longest side plus girth 165" or less.

Special oversize

Any packaged unit that exceeds one or more of the following: Over 150 lb. (dimensional weight or unit weight), over 108" on its longest side, or over 165" when longest side is added to girth. In addition, products that we determine require special handling or delivery will qualify for Special Oversize.

Median side

The dimension of a product that is neither the longest nor the shortest side.

Girth

A unit measure, equivalent to 2 x (median side + shortest side).

Unit weight

The weight of an individual unit.

Outcomes