Amazon regularly introduces changes to their FBA fulfillment fees in order to complement the changes in the global eCommerce industry. This year, the tech giant introduced significant changes in core Amazon FBA fees and other Amazon selling fees in general, the majority of which will take effect on February 5th, 2024.
The upcoming Amazon fee changes are brought about by multiple factors affecting Amazon’s business operations and the eCommerce industry in its totality. The new Amazon fees for 2024 are designed to motivate sellers to utilize the platform’s services to benefit all parties involved, facilitating faster deliveries and ensuring efficient use of space in Amazon fulfillment centers.
Amazon Fee Changes in 2024 | Summary
As Amazon continues to invest in technology, infrastructure, transportation, and people in order to innovate its services, additional costs are bound to be incurred. The changes to Amazon fees are largely focused on fulfillment, referral, storage, unit sales, and returns processing.
As an overview of the impact of these changes in Amazon fees, an average increase of $0.15 in fees per unit sold is to be expected by Amazon sellers. However, Amazon emphasizes that such an increase is “significantly less than other logistics providers.”
To further enlighten sellers on the changes in Amazon selling fees this year, here are some core fee adjustments to be implemented in 2024.
Amazon Referral Fees Update for 2024
Starting January 15, 2024, there will be some changes in Amazon referral fees for apparel products, while other referral fees will remain unchanged. Apparel products priced at a certain level will be updated.
- For items under $15, Amazon will reduce referral fees to 5% instead of 17%.
- For items between $15 and $20, Amazon will decrease referral fees to 10% instead of 17%.
As mentioned, referral fees for other Amazon products will remain unchanged. You may refer on the table below for the referral fees of specific Amazon categories:
|
Fee categories
|
Amazon deducts the greater of the applicable referral fee percentage or applicable per-item minimum referral fee. | |
| Referral fee percentages | Applicable minimum referral fee (applied on a per-unit basis unless otherwise noted) |
|
| Amazon Device Accessories | 45% | $0.30 |
| Amazon Explore | 30% for Experiences | $2.00 |
| Automotive and Powersports | 12% | $0.30 |
| Baby Products | 8% for products with a total sales price of $10.00 or less, and
15% for products with a total sales price greater than $10.00 |
$0.30 |
| Backpacks, Handbags, and Luggage | 15% | $0.30 |
| Base Equipment Power Tools | 12% | $0.30 |
| Beauty, Health and Personal Care | 8% for products with a total sales price of $10.00 or less, and
15% for items with a total sales price greater than $10.00 |
$0.30 |
| Business, Industrial, and Scientific Supplies | 12% | $0.30 |
| Clothing and Accessories | 17% | $0.30 |
| Compact Appliances | 15% for the portion of the total sales price up to $300.00, and
8% for any portion of the total sales price greater than $300.00 |
$0.30 |
| Computers | 8% | $0.30 |
| Consumer Electronics2 | 8% | $0.30 |
| Electronics Accessories1 | 15% for the portion of the total sales price up to $100.00, and
8% for any portion of the total sales price greater than $100.00 |
$0.30 |
| Everything Else3 | 15% | $0.30 |
| Eyewear | 15% | $0.30 |
| Fine Art | 20% for the portion of the total sales price up to $100.00,
15% for the portion of the total sales price greater than $100.00 up to $1,000.00, 10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and 5% for the portion of the total sales price greater than $5,000.00 |
— |
| Footwear | 15% | $0.30 |
| Full-Size Appliances | 8% | $0.30 |
| Furniture | 15% for the portion of the total sales price up to $200.00, and
10% for any portion of the total sales price greater than $200.00 |
$0.30 |
| Gift Cards | 20% | — |
| Grocery and Gourmet | 8% for products with a total sales price of $15.00 or less, and
15% for products with a total sales price greater than $15.00 |
— |
| Home and Kitchen | 15% | $0.30 |
| Jewelry | 20% for the portion of the total sales price up to $250.00, and
5% for any portion of the total sales price greater than $250.00 |
$0.30 |
| Lawn and Garden | 15% | $0.30 |
| Lawn Mowers and Snow Throwers | 15% for products with a total sales price of up to $500.00
8% for products with a total sales price greater than $500.00 |
$0.30 |
| Mattresses | 15% | $0.30 |
| Media – Books, DVD, Music, Software, Video | 15% | — |
| Musical Instruments and AV Production | 15% | $0.30 |
| Office Products | 15% | $0.30 |
| Pet Products | 15%, except 22% for veterinary diets | $0.30 |
| Sports and Outdoors | 15% | $0.30 |
| Tires | 10% | $0.30 |
| Tools and Home Improvement | 15% | $0.30 |
| Toys and Games | 15% | $0.30 |
| Video Game Consoles | 8% | — |
| Video Games and Gaming Accessories | 15% | — |
| Watches | 16% for the portion of the total sales price up to $1,500.00, and
3% for any portion of the total sales price greater than $1,500.00 |
$0.30 |
Source: Adapted from Seller Central – “Referral fee rates,” Jan 24, 2024.
FBA Fulfillment Fees (Excluding Apparel)
On February 5th, 2024, the new granular rate cards for standard-sized products and large bulky & extra-large size tiers will take effect. Moreover, starting April 15th, 2024, FBA fulfillment fee rates for the aforementioned size tiers will be implemented.
To better understand the FBA fulfillment fees in 2024, you may refer to the chart below.
| Size tier | Shipping weight | 2024 fulfillment fee (January 15, 2024 to February 4, 2024) |
Size tier | Shipping weight | 2024 fulfillment fee (February 5, 2024 to April 14, 2024) |
2024 fulfillment fee (Starting April 15, 2024) |
|
Small standard
|
4 oz or less
|
$3.22
|
Small standard
|
2 oz or less | $3.22 | $3.06 |
| 2+ to 4 oz | $3.31 | $3.15 | ||||
|
4+ to 8 oz
|
$3.40
|
4+ to 6 oz | $3.40 | $3.24 | ||
| 6+ to 8 oz | $3.49 | $3.33 | ||||
|
8+ to 12 oz
|
$3.58
|
8+ to 10 oz | $3.58 | $3.43 | ||
| 10+ to 12 oz | $3.68 | $3.53 | ||||
|
12+ to 16 oz
|
$3.77
|
12+ to 14 oz | $3.77 | $3.60 | ||
| 14+ to 16 oz | $3.82 | $3.65 | ||||
|
Large standard
|
4 oz or less | $3.86 |
Large standard
|
4 oz or less | $3.86 | $3.68 |
| 4+ to 8 oz | $4.08 | 4+ to 8 oz | $4.08 | $3.90 | ||
| 8+ to 12 oz | $4.24 | 8+ to 12 oz | $4.32 | $4.15 | ||
| 12+ to 16 oz | $4.75 | 12+ to 16 oz | $4.75 | $4.55 | ||
|
1+ to 1.5 lb
|
$5.40
|
1+ to 1.25 lb | $5.19 | $4.99 | ||
| 1.25+ to 1.5 lb | $5.57 | $5.37 | ||||
|
1.5+ to 2 lb
|
$5.69
|
1.5+ to 1.75 lb | $5.75 | $5.52 | ||
| 1.75+ to 2 lb | $6.00 | $5.77 | ||||
|
2+ to 2.5 lb
|
$6.10
|
2+ to 2.25 lb | $6.10 | $5.87 | ||
| 2.25+ to 2.5 lb | $6.28 | $6.05 | ||||
|
2.5+ to 3 lb
|
$6.39
|
2.5+ to 2.75 lb | $6.45 | $6.21 | ||
| 2.75+ to 3 lb | $6.86 | $6.62 | ||||
| 3+ lb to 20 lb | $7.17 + $0.16 per half-lb interval above first 3 lb | 3+ lb to 20 lb | $7.25 + $0.08 per 4 oz interval above first 3 lb | $6.92 + $0.08 per 4 oz interval above first 3 lb |
Source: Adapted from Seller Central – “Table 1. FBA fulfillment fees (excluding Apparel),” Jan 24, 2024.
| Size tier | Shipping weight | 2024 fulfillment fee |
| Small oversize | 70 lb or less |
$9.73 + $0.42/lb interval above first lb
|
| Medium oversize | 150 lb or less |
$19.05 + $0.42/lb interval above first lb
|
| Large oversize | 150 lb or less |
$89.98 + $0.83/lb interval above first 90 lb
|
| Special oversize1 | Over 150 lb |
$158.49 + $0.83/lb interval above first 90 lb
|
Source: Adapted from Seller Central – “Table 2. FBA fulfillment fees (excluding Apparel),” Jan 24, 2024.
| Size tier | Shipping weight | 2024 fulfillment fee (February 5, 2024 to April 14, 2024) |
2024 fulfillment fee (Starting April 15, 2024)
|
|
| Large bulky | 0 to 50 lb | $9.73 + $0.42/lb interval above first lb |
$9.61 + $0.38/lb interval above first lb
|
|
| Extra-large 0 to 50 lb | 0 to 50 lb | $26.33 + $0.38/lb interval above first lb |
$26.33 + $0.38/lb interval above first lb
|
|
| Extra-large 50+ to 70 lb | 50+ to 70 lb | $40.12 + $0.75/lb interval above 51 lb |
$40.12 + $0.75/lb interval above 51 lb
|
|
| Extra-large 70+ to 150 lb | 70+ to 150 lb | $54.81 + $0.75/lb interval above 71 lb |
$54.81 + $0.75/lb interval above 71 lb
|
|
| Extra-large 150+ lb1 | 150+ lb | $194.95 + $0.19/lb interval above 151 lb |
$194.95 + $0.19/lb interval above 151 lb
|
Source: Adapted from Seller Central – Table 3. FBA fulfillment fees (excluding Apparel),” Jan 24, 2024.
Inbound and Outbound Fee Changes
The new inbound placement service fee aligns with the changes in Amazon seller fees for 2024. Starting March 1st, 2024, there will be an inbound placement service fee for standard and Large Bulky-sized products. The standard-sized products will have an average fee of $0.27 per unit, whereas Large Bulky-sized products will have an average fee of $1.58 per unit.
The implementation of this inbound placement service fee will commence 45 days after the products are received. It means that Amazon will start charging sellers inbound placement fees on April 15th, 2024. For reference, you can check the table below.
|
Size
|
Weight
|
FBA Inbound Placement Services | ||
| Premium service | Discounted service | |||
| Send to a single location | Send to multiple locations | |||
| Small standard Max 15x12x0.75 inches |
16 oz or less | $0.21-$0.30 |
Receive a discount of up to 100% based on the number of shipments and inbound locations
|
|
|
Large standard
Max 18x14x8 inches |
12 oz or less | $0.23-$0.34 | ||
| 12+ oz to 1.5 lb | $0.27-$0.41 | |||
| 1.5+ lb to 3 lb | $0.32-$0.49 | |||
| 3+ lb to 20 lb | $0.42-$0.68 | |||
Source: Adapted from Seller Central – “FBA inbound placement service fee,” Jan 24, 2024.
|
Size
|
Weight
|
FBA Inbound Placement Services | ||
| Premium service | Discounted service | |||
| Send to a single location | Send to multiple locations | |||
|
Large Bulky Size
Max 59x33x33 inches |
5 lb or less | $2.16 to $2.67 |
Receive a discount of up to 100% based on the number of shipments and inbound locations
|
|
| 5+ lb to 12 lb | $2.55 to $3.15 | |||
| 12+ lb to 28 lb | $3.19 to $3.95 | |||
| 28+ lb to 42 lb | $4.13 to $5.11 | |||
| 42+ to 50 lb | $4.85 to $6.00 | |||
Source: Adapted from Seller Central – “FBA inbound placement service fee,” Jan 24, 2024.
To minimize or eliminate fees associated with inbound placement services, Amazon recommends opting for the “Discounted” FBA inbound placement service, provided your shipping plan meets the criteria. This choice will significantly reduce or completely eliminate fees for dispatching your inventory to various inbound locations within the Amazon network.
In relation to inbound fees, effective March 1, 2024, Amazon will introduce an inbound defect fee. This particular Amazon fee will cover shipments delivered to the wrong fulfillment center or deleted and abandoned shipments. The below outlines the per-unit inbound defect fee amount.
|
Product size tier
|
Weight
|
Inbound defect fees amount | |
| Shipments delivered to the wrong location | Deleted and abandoned shipments | ||
| Small standard Max 15 x 12 x 0.75 inches |
16 oz or less | $0.04 | $0.02 |
|
Large standard
Max 18 x 14 x 8 inches |
12 or less oz | $0.04 | $0.02 |
| 12+ oz to 1.5 lb | $0.05 | $0.02 | |
| 1.5+ lb to 3 lb | $0.06 | $0.03 | |
| 3+ lb to 20 lb | $0.07 | $0.04 | |
Source: Adapted from Seller Central – “Inbound defect fees,” Jan 24, 2024.
For outbound products, sellers will also observe a reduced FBA fulfillment fee rate of $0.20 per unit for standard-sized products and $0.61 per unit for large bulky-sized products for large bulky-sized products.
Another fee update relating to fulfillment fees includes a fulfillment fee discount ranging from $0.04 to $1.32, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program.
Accordingly, items certified as SIPP will automatically receive lowered FBA fulfillment fees on each certified unit shipped. You may refer to the table below for the allotted discount per SIPP-certified unit in 2024.
| Size tier | Shipping weight | SIPP discount for non-Apparel | Shipping weight | SIPP discount for Apparel |
|
Small standard
|
2 oz or less | $0.04 |
4 oz or less
|
$0.06
|
| 2+ to 4 oz | $0.04 | |||
| 4+ to 6 oz | $0.05 |
4+ to 8 oz
|
$0.07
|
|
| 6+ to 8 oz | $0.05 | |||
| 8+ to 10 oz | $0.06 |
8+ to 12 oz
|
$0.07
|
|
| 10+ to 12 oz | $0.06 | |||
| 12+ to 14 oz | $0.07 |
12+ to 16 oz
|
$0.07
|
|
| 14+ to 16 oz | $0.07 | |||
|
Large standard
|
4 oz or less | $0.04 | 4 oz or less | $0.06 |
| 4+ to 8 oz | $0.04 | 4+ to 8 oz | $0.06 | |
| 8+ to 12 oz | $0.07 | 8+ to 12 oz | $0.06 | |
| 12+ to 16 oz | $0.08 | 12+ to 16 oz | $0.07 | |
| 1+ to 1.25 lb | $0.09 |
1+ to 1.5 lb
|
$0.08
|
|
| 1.25+ to 1.5 lb | $0.09 | |||
| 1.5+ to 1.75 lb | $0.10 |
1.5+ to 2 lb
|
$0.09
|
|
| 1.75+ to 2 lb | $0.11 | |||
| 2+ to 2.25 lb | $0.12 |
2+ to 2.5 lb
|
$0.12
|
|
| 2.25+ to 2.5 lb | $0.13 | |||
| 2.5+ to 2.75 lb | $0.14 |
2.5+ to 3 lb
|
$0.14
|
|
| 2.75+ to 3 lb | $0.14 | |||
| 3+ lb to 20 lb | $0.23 | 3+ lb to 20 lb | $0.22 | |
| Large bulky | 0 to 50 lb | $1.32 | 0 to 50 lb | $0.58 |
Source: Adapted from Seller Central – Jan 24, 2024.
Inventory and Storage Fee Changes
Amazon recommends that sellers using Fulfillment by Amazon ensure they have a healthy inventory level to minimize order fulfillment costs, including shipping costs.
In an effort to promote healthy inventory levels among third-party sellers, Amazon is introducing a low-inventory-level fee for standard-sized products. As per Amazon, the new low-inventory-level fee “applies if you carry consistently low levels of inventory relative to unit sales.” The said fee is set to be implemented on April 1st, 2024, and for guidance may refer to the table below.
|
2024 size tier
|
Shipping weight
|
Low-inventory-level fee | ||
| 0-14 historical days of supply | 14-21 historical days of supply |
21-28 historical days of supply
|
||
| Small standard | Up to 16 oz | $0.89 | $0.63 | $0.32 |
| Large standard | Up to 3 lb | $0.97 | $0.70 | $0.36 |
| Large standard | 3+lb to 20 lb | $1.11 | $0.87 | $0.47 |
Source: Adapted from Seller Central – Jan 24, 2024.
In relation to storage fee updates, Amazon indicated that non-peak monthly storage for standard-size product fees will be reduced. Amazon FBA sellers can expect a non-peak monthly inventory storage fees reduction to an average of $0.09 per cubic foot, effective April 1st, 2024. On the other hand, monthly storage fees for non-standard sizes will remain unchanged.
Furthermore, Amazon will also be introducing more granular fee tiers to the storage utilization surcharge primarily affecting professional sellers.
| Prior to April 1, 2024 | ||
| Storage month | Standard-size | Large bulky / Extra-large (previously called oversized) |
| January-September | $0.87 per cubic foot | $0.56 per cubic foot |
| October-December | $2.40 per cubic foot | $1.40 per cubic foot |
| April 1, 2024, and after | ||
| Storage month | Standard-size | Large bulky / Extra-large |
| January-September | $0.78 per cubic foot | $0.56 per cubic foot |
| October-December | $2.40 per cubic foot | $1.40 per cubic foot |
Source: Adapted from Seller Central – Jan 24, 2024.
Amazon FBA Fees 2024 for Removal, Disposal and Liquidation
Starting February 5th, 2024, Amazon will implement changes to its removal and disposal order fees. It is worth noting that, for Amazon sellers who place removal or disposal orders before February 5, 2024 the new fees won’t apply. For reference, you can check the table below for the updated 2024 Amazon FBA removal and disposal fees:
| Before February 5, 2024 | February 5, 2024, and after | ||
| Size tier | Shipping weight | Removal or disposal fee per unit | Removal or disposal fee per unit |
|
Standard-size
|
0 to 0.5 lb | $0.97 | $1.04 |
| 0.5+ to 1.0 lb | $1.46 | $1.53 | |
| 1.0+ to 2.0 lb | $2.20 | $2.27 | |
| More than 2 lb | $2.83 + $1.06/lb above 2 lb | $2.89 + $1.06/lb above 2 lb | |
|
Large bulky, extra-large and special handling items*
|
0 to 1.0 lb | $3.12 | $3.12 |
| 1+ to 2.0 lb | $4.07 | $4.30 | |
| 2.0+ to 4.0 lb | $5.56 | $6.36 | |
| 4.0+ to 10.0 lb | $9.43 | $10.04 | |
| More than 10.0 lb | $13.05 + $1.06/lb above 10 lb | $14.32 + $1.06/lb above 10 lb |
Source: Adapted from Seller Central – “FBA removal, disposal and liquidation order fee changes,” Jan 24, 2024.
Amazon Returns Processing Fee Updates
Starting June 1st, 2024, returns processing fee will be implemented for high-return rate products in all categories, except apparel and shoes. This Amazon fee update is intended to address operational costs and reduce waste. You may refer to the 2024 returns processing fee table below.
| 2024 returns processing fee | ||||
| Size tier | Shipping weight | Apparel and Shoes Charged for each returned unit (Starting on February 5, 2024) |
Shipping weight | All products excluding Apparel and Shoes Charged to returned units above the threshold (Starting on June 1, 2024) |
|
Small standard
|
4 oz or less
|
$1.65
|
2 oz or less | $1.78 |
| 2+ to 4 oz | $1.84 | |||
|
4+ to 8 oz
|
$1.75
|
4+ to 6 oz | $1.90 | |
| 6+ to 8 oz | $1.96 | |||
|
8+ to 12 oz
|
$1.85
|
8+ to 10 oz | $2.02 | |
| 10+ to 12 oz | $2.08 | |||
|
12+ to 16 oz
|
$1.95
|
12+ to 14 oz | $2.14 | |
| 14+ to 16 oz | $2.21 | |||
|
Large standard
|
4 oz or less | $2.04 | 4 oz or less | $2.36 |
| 4+ to 8 oz | $2.12 | 4+ to 8 oz | $2.70 | |
| 8+ to 12 oz | $2.19 | 8+ to 12 oz | $3.05 | |
| 12+ to 16 oz | $2.27 | 12+ to 16 oz | $3.39 | |
|
16+ oz to 1.5 lb
|
$2.62
|
1+ to 1.25 lb | $3.70 | |
| 1.25+ to 1.5 lb | $4.01 | |||
|
1.5+ to 2 lb
|
$2.98
|
1.5+ to 1.75 lb | $4.32 | |
| 1.75+ to 2 lb | $4.63 | |||
|
2+ to 2.5 lb
|
$3.33
|
2+ to 2.25 lb | $4.66 | |
| 2.25+ to 2.5 lb | $4.68 | |||
|
2.5+ to 3 lb
|
$3.69
|
2.5+ to 2.75 lb | $4.71 | |
| 2.75+ to 3 lb | $4.73 | |||
| 3+ lb to 20 lb | $3.89 + $0.10/half-lb interval above first 3 lb | 3+ lb to 20 lb | $5.00 + $0.05 per 4 oz interval above the first 3 lb | |
| Large bulky | 0 to 50 lb | $6.74 + $0.32 per 1 lb interval above first lb | 0 to 50 lbs | $6.74 + $0.32 per 1 lb interval above first lb |
| Extra-large 0 to 50 lb | 0 to 50 lb | $26.33 + $0.38/lb interval above first lb | 0 to 50 lb | $26.33 + $0.38/lb interval above first lb |
| Extra-large 50+ to 70 lb | 50+ to 70 lb | $40.12 + $0.75/lb interval above 51 lb | 50+ to 70 lb | $40.12 + $0.75/lb interval above 51 lb |
| Extra-large 70+ to 150 lb | 70+ to 150 lb | $52.45 + $0.75 per 1 lb interval above 71 lb | 70+ to 150 lb | $52.45 + $0.75 per 1lb interval above 71 lb |
| Extra-large 150+ lb | 150+ lb | $157.35 + $0.19 per 1 lb interval above 151 lb | 150+ lb | $157.35 + $0.19 per 1 lb interval above 151 lb |
Source: Adapted from Seller Central – “Returns processing fee,” Jan 24, 2024.
Final Thought
The upcoming Amazon fee changes are relatively minimal, but will definitely affect the average fees paid by sellers. It’s crucial to thoroughly assess these fee increases in the context of your profit margins. The use of Amazon seller tools like an Amazon FBA calculator and an Amazon repricer can prove invaluable in effectively navigating these changes.
