New Amazon Seller Fee Changes for 2024

• 6 min read

Amazon announced changes Fulfillment by Amazon (FBA) fees for 2024. At a high level hears what you need to know.

According to Amazon, the changes aim to improve fulfillment service and speed while reducing costs.

Amazon FBA Fees will be approximately 70% cheaper than similar two-day shipping options offered by other carriers.

At a high level many of these fee changes reward sellers who are on top of their logistics with FBA and punish those who are not.

We will cover year-over-year changes in common FBA fees and costs:

  • FBA Fulfillment Fees
  • Storage Fees
  • Long Term Storage Fees
  • Removal Fees

As well as new fees that Amazon has created.

New Amazon FBA rates for 2024

  • New fees will go fully into effect on April 15th.
  • FBA fulfillment fee rates will decrease on average by $0.20 per unit for standard-sized products.
  • For Large Bulky-sized products, fees will decrease by $0.61 per unit.
  • A significant change is the introduction of more granular FBA Size Tiers. Sellers previously at the lower end of a size tier will benefit from this new, detailed tier system.
  • The 2024 Size Tier and Fulfillment Fee card will detail these changes, specifically for Amazon FBA Fulfillment Fees, excluding Apparel products.

Amazon's FBA Fee changes in 2024 will occur in two phases:

  1. February 5th, 2024: Introduction of new, granular size tiers.
  2. April 15th, 2024: An average fee reduction of 4% across all size tiers.

The "Large Standard 4 oz or less" tier will see the largest reduction at 5%.

The "Large Standard 2.75+ to 3lb" tier will have the smallest reduction, at 3%.

New FBA Inventory Inbounding and Placement Fees for 2024


Starting March 1, 2024, Amazon introduces new Inbounding and Placement fees to share the costs of distributing inventory in their fulfillment network. Sellers, when creating shipping plans, must choose between two options:

  1. Premium Service: Send shipments to a single Amazon Receive Center or Fulfillment Center. Amazon will then distribute inventory network-wide for a variable fee. Fees are higher for shipments to Western locations.
  2. Discounted Service: Self-distribute inventory to multiple locations at a reduced or no fee, depending on factors like the number of shipments and locations. This option may not always be available.

Average fees are $0.27 per unit for standard-sized products and $1.58 per unit for large, bulky items, billed 45 days post-receipt. Fees vary based on product size, weight, and chosen service tier.

  • This new fee system is an additional cost for sellers who were using the previous FBA Inventory Placement Service.

2024 Seller Central's Cost-Saving Program: Ships in Product Packaging (SIPP)

The Ships in Product Packaging (SIPP) is a new program, essentially a rebrand of Amazon's SIOC (Ships in Own Container) under the Amazon Frustration-Free Packaging initiative.

  • SKUs in the SIPP program can receive discounts ranging from $0.04 to $1.32, based on size and weight.
  • The program encourages packaging optimization, aiming to use the least amount of material while ensuring product safety during transit, which leads to cost savings.
  • Sellers can self-test and record product results for SIPP program enrollment, depending on the product.
  • To check your eligibility for this program go to the link below.
SELLERS
Packaging (US)

2024 Updates to FBA Monthly Storage and Inventory Fees

  • As always, your storage fees are calculated based on cubic feet your products utilize in Amazon's warehouse.
  • During the high-demand holiday period (October - December), storage fees will be the same as last year.
  • For 2024, fees for Standard-size products will decrease during the Non-Peak period (January - September) from $0.87 to $0.78 per cubic square foot. Decreasing by 9 cents from last year.

New Low Inventory Level Fee Introduced in April 2024

Amazon introduces a new Low-Inventory-Level fee for sellers starting April 1, 2024.

This fee applies when sellers don't maintain enough inventory to cover 28 days of historical sales.

The fee is to prevent low inventory levels, which hinder Amazon's distribution efficiency, slow down delivery, and increase shipping costs.

However, there are exemptions:

  • New-to-FBA parent products for the first 180 days post first inventory receipt, if enrolled in FBA New Selection.
  • New professional sellers for the first 365 days post first inventory receipt.
  • Products auto-replenished by Amazon Warehousing and Distribution, adding value to the AWD service.

Detailed fee rates are provided below.

Changes to Storage Utilization and Longterm Storage Fees in 2024


Monthly Inventory Storage and Long Term Storage Fee Changes for 2024:

Storage Utilization Surcharge (Effective April 1, 2024):

  • Charged for overstocking inventory in Fulfillment Centers, based on recent demand and sell-through.
  • Calculation involves Product Size Tier, Current Month, Product Volume, etc.
  • Six new storage utilization ratios, ranging from 22 to 52+ weeks.
  • Surcharges will now apply at lower utilization ratios (22 weeks in 2024, down from 26 weeks in 2023).
  • Higher penalties for overstocking (44+ weeks), with surcharges up to $1.88 per cubic foot.
  • Sellers can monitor and adjust inventory levels to avoid surcharges.
  • Different fee structures for off-peak (January-September) and peak periods (October-December).
  • Products auto-replenished by Amazon Warehousing and Distribution eligible for a waiver starting June 1, 2024.

Aged Inventory Long Term Storage Fee:

  • Fees remain generally unchanged for items aged 181-270 days.
  • Increased surcharges for inventory older than 271 days.
  • Sellers can manage these fees by monitoring inventory age and not overstocking.

2024 Updates to FBA Inventory Removal, Disposal, and Liquidation Fees

Starting February 5, 2024, Amazon FBA's per-unit removal or disposal fees will rise by an average of 7%

These fees cover the costs of picking items from storage and handling their removal or disposal.

To reduce these costs, sellers should:

  • Maintain appropriate FBA stock levels.
  • Ensure accurate item and box labeling.
  • Lower customer return rates.
  • Design packaging that minimizes damage and breakage.
  • Detailed rate change information is provided below.
  • FBA Liquidation fees will stay the same in 2024 as they were in 2023.
  • Through FBA Liquidations, sellers can have Amazon liquidate their inventory via external marketplaces and distributions, outside of Amazon.com.
  • Amazon charges a per-unit Liquidation Fee and compensates sellers with a graded net recovery value, usually 5%-10% of the product's regular price.

Amazon Return Processing Fee

  • Starting June 1, 2024, Amazon will introduce a Returns Processing Fee for products exceeding specific category return rate thresholds.
  • The return rate is calculated by dividing the product's shipped units in a given month by the customer returns during that month and the following two months.
  • Apparel and Shoes categories are exempt from this fee, instead facing a per-order return processing charge.
  • This change can lead to cost savings for sellers, as the fee is applied only when the product's return rate exceeds the category threshold, replacing the previous per-return fee structure.
  • Sellers with lower return rates may benefit financially from this new approach.
  • The change underscores the importance of accurate product descriptions to reduce customer return rates.
  • The 2024 Returns Processing Fee rate card details these changes.

Additional Enhanced Services and Advantages

In 2024, Amazon is enhancing several services and benefits to be more accessible for sellers:

Apparel Amazon FBA Fees Changes:

  • For Apparel products priced between $15.00 and $20.00, referral fees will drop from 17% to 5%.
  • For Apparel products priced below $15.00, referral fees will reduce from 12% to 5%.

Amazon Vine Fees Update:

  • The Amazon Vine early review program introduces new, lower-cost service tiers for greater flexibility and affordability.

FBA New Selection Program Expansion:

  • Amazon has broadened the US FBA New Selection program, offering a 10% rebate on sales of eligible new-to-FBA parent products.

Supply Chain by Amazon Rate and Benefit Updates:

  • Amazon Warehousing and Distribution now offers more value due to new fee exemptions available through program participation.