Amazon Selling Fee in the US in 2024? What Amazon Sellers Need to Know

It’s no longer whispers about Amazon price hikes because most have been implemented.

Amazon selling fees in the US in 2024 have increased due to multiple changes in the Amazon business environment.

The new policy changes have affected multiple areas, with the most recent adjustments happening in Fulfillment By Amazon (FBA) fees. Changes in price, especially on the higher side, affect sellers in many ways, like profit margins, inventory management, and customer retention. 

As a seller on Amazon and aspiring to become one, you must know about Amazon selling fees in the US in 2024. Foundeck created this post to inform you of the Amazon fee changes in the US, the exact areas affected, customer retention, and how to formulate your product prices to survive. 

Amazon doesn’t change pricing due to individual users, but the platform strives to make fair adjustments that offer customers a consistent shopping experience. However, Amazon’s algorithm has been rumored to adjust prices according to external factors, such as competitor prices. So, don’t be surprised when you view a product on Amazon and notice it has been adjusted. 

The price change might be driven by other market dynamics, not a personal target on products. If you’re a seller yet to learn about the new Amazon, you’re reading the most crucial post today as we dissect all the latest Amazon selling fees in the US in 2024. 

Reasons for Amazon Fees Rising in the US?

Businesses review operation fees continually, depending on prevailing factors like market trends, customer satisfaction, and operation costs. 

Amazon, the world’s largest online retailer, evaluates its fee strategy as business objectives advance. So, if you’re an Amazon US seller, it’s essential to understand these new changes to ensure you’re running a profitable business while retaining your customers.

Amazon sellers with a consistent customer flow must bear an increase of about $0.15 per unit. These fee hikes only affect sellers with four weeks of stock levels, meaning they might need to notice the fee changes. However, brands that don’t prioritize Amazon stock will notice these fee adjustments. 

Don’t only focus on the rise, but there are other benefits where Amazon ensures the end goal is lower than outbound fees. Sounds complicated, right? Let’s break it down. 

By streamlining the inbound fees, Amazon ensures that shipping fees to customers from their network are lower and balanced. The only way to make operational costs efficient is to ensure goods are sold and shipped out at lower prices. 

Any company that considers Amazon a vital partner in growing their business will consider this a positive development. 

Any Good News for US Amazon Sellers?

Despite any price shifts Amazon may undergo, it continues to lead in fulfillment and delivery services. The fulfillment fees on Amazon remain lower than those of other logistics providers. As Amazon implements changes in various areas, it’s not to hurt the seller but to help illuminate those with robust inventory management. 

The changes will eliminate sellers who don’t value Amazon as a severe growth partner for their business. The table below indicates the changes in Amazon 2024 from mid-January to June 5. 

What You Need to Know as a Seller About Amazon Fee Changes

Amazon has millions of sellers worldwide, most of whom make significant revenue but have yet to gain (profit) from the marketplace. Hence, as a seller, getting the numbers on the platform right to ensure you conduct business right is crucial. 

The additional numbers on Amazon seem minute, but they can add up to minimize your profit margins. Thus, you must pay attention to price shifts to ensure you set the correct product prices. 

As long as you’re an Amazon seller, be vigilant on any chase on Amazon to ensure you’re making maximum profits on the platform. Here’s a detailed look at the changes in Amazon selling fees in the US in 2024: 

1. Adoption of Inbound Placement Service Fees 

From March 1, 2024, the Amazon Inbound Placement Service Fee was implemented. Unlike before, Amazon sellers created shipping plans that were shipped to various fulfillment centers by default. However, with the implementation of the inbound placement service fees, goods are now shipped by default to a single fulfillment center. Sellers can choose a variation from this development to ship products to several fulfillment centers like before at no fee or discount. 

Before adopting the inbound placement service fee, Amazon shipping plans were sent to various fulfillment centers. However, since March 1, the new policy has allowed sellers to use a single fulfillment center instead of dispersing them to different centers. 

Amazon is committed to partnering with sellers to place inventory across their network. Stocking inventory near customers hastens the speed of receiving orders at low transportation costs, which drives more sales. The marketplace is determined to use its network more efficiently by charging inbound and outbound activities separately.

1a) Fulfillment By Amazon (FBA) Inbound Placement Fee

The application of FBA Inbound Placement Service Fee depends on factors like: 

• Product size: Products range from small or large standard to large and heavy-weight.
• Weight: small standard-weight products are measured by unit weight, and significant standard and heavy-weight products increase in value depending on dimension and unit weight.
• The Number of Locations grade: The fulfillment centers range from minimum, partial, or Amazon-optimized shipment splits.
• The location of the fulfillment centers: The location of the fulfillment center will also affect placement fees.

2. Inbound Defect Fees

Inbound defect fees are a change related to the mishaps of a fulfillment center, which was implemented on March 1.  What does the change mean? Inbound defect fees are a seller’s cost when products are sent to the wrong fulfillment center as per the shipping plan. If a shipment is deleted, it becomes an incomplete shipment that also attracts a fee. 

2a) Inbound Defect Fees

Inbound defect fees are imposed on shipments wrongly processed on the delivery plans. Such orders will incur separate FBA inbound service fees depending on where the products will be received and their intended location. Hence, the sellers who receive, redirect, and process such orders will be charged inbound defect fees. The fees are determined by product size grading and may be higher than the estimated fees when the initial shipment plan was created. 

2b) Subjects of Inbound Defect Fees

Several factors will affect inbound defect fees, and they include:

• Wrong delivery of Shipments is when a package is delivered to the wrong location other than the one listed in the initial shipping plan.
• Deleted and deserted shipments include US shipments that don’t reach their destination within 45 days of creation or 75 days for international shipments. As for multi-destination shipping plans are deemed deserted shipments if they don’t get to the destination within 30 days after the first shipping date.

3. Low-Inventory-Level Fees

Amazon sellers dealing with standard-size products yet consistently experience product shortages compared to customer demand are also in trouble. A low-inventory-level fee will be imposed on sellers who fail to ship products sufficiently or are consistent victims of low inventory levels. Amazon implemented the low-inventory-level fee on March 1.

Amazon can differentiate between long-term and short-term product supply days: the past 90 days for the long-term or 30 days for the latter. However, sellers can escape the fees depending on their sales volume by maintaining inventory for at least four weeks. 

The low-inventory-level fees only apply when long and short-term supply days fall short by 28 days (4 weeks). If the short-term supply days are more than four weeks, whereas the long-term days fall short of 28 days, the Amazon seller will not be charged the low-level inventory fee. 

Here are the criteria for imposing a low-inventory-level fee: 

• The fee is charged based on Shipment weight, Product size, and past supply days for long and short-term supply days.
• Amazon Supply Days refer to the average days inventory can support customer demand. 

3a) The low-inventory-level fee will not apply to:

• Fresh Amazon professional sellers in the first 365 days since receiving the first inventory. 
• Recruits to FBA parent products in the first 180 days from the initial date of receiving inventory. For Amazon sellers to enjoy this benefit, they must first be enrolled in FBA New Selection. 

4. FBA Order Processing Fees

Since April 15, the FBA order processing fees for standard-sized products have come down by $0.20 on each item. Order processing fees decreased by $0.61 per item for large and heavy items. FBA order processing fees rolled out gradually, especially for standard-size, heavy, and mega-size items. 

5. Hike in Return Fees (Products with High Return Rate)

Products with high return rates will be charged return processing fees from June 1. The new fee applies to all products with high return rates in every category, excluding shoes and apparel. There’s a category-specific threshold for return rates in every product category, and the return processing fee will only apply to products that exceed. However, the return processing fees for shoes and apparel will not be affected. Here’s how the return processing fees will apply:

• From February 5, the return fees for apparel and shoes were charged per return item. 
• However, shoes and apparel will only be charged return fees if the returned items exceed the category-specific threshold for return rates from June 1. 

5a) FBA Return Period

The Amazon FBA return request period is three months (90 days), and the return rate is the ratio returned within this period. For instance, the return rate ratio for items shipped in June will depend on all returns in June, July, and August. Items shipped in the same month will attract a return processing fee for each product that exceeds the return rate threshold in the product’s category.  

For items shipped in June 2024 where return fees were changed, the return rate ratio will be established and billed between September 7 and 15. But, if the returned items in a month are less than 25, they’re exempt from returns, and the fees will only apply to the actual items returned.

5b) The Impact of FBA Fees on Amazon in the USA

The business environment for Amazon sellers has shifted to complex thanks to the shift in sales and FBA fees by Amazon in the USA. Although fee reductions are limited, existing fees are being increased, and new fee structures are being implemented, which increases the cost burden for Amazon sellers. Some business aspects will rise due to the shift in fee structures, including operational and management burdens, but the impact on sales revenue might be less. 

• The impact of fee adjustments will vary from seller to seller; they need a thorough analysis of these adjustments for the business to remain profitable. Strategic adjustments to business operations should help review and analyze inventory to accommodate fee changes effectively.
• For instance, it’s a wise business move for a seller shipping products to a single fulfillment center to check the logistics and determine if distributing the products to multiple fulfillment centers will lower the inbound placement fees. They should also consider conducting an economic analysis of the new fee structure to determine if shipping to a single fulfillment center is more cost-effective. 
• To avoid low-inventory-level fees, sellers should adjust restocking periods and shipment quantities to maintain appropriate inventory levels for every product. 

5c) How to Manage Return-related Fees

Sellers can lower return-related fees by analyzing the return rates and the reasons for each product coming back, then finding ways to minimize the return rate and adopt them. For instance, if returns are heaping up due to a difference in product descriptions, alter them to make them sound the same. If packaging damage is the reason for returns, change the product packaging and see the outcome.

When in business, I accurately understand the changing environment and take proactive steps to ensure business continuity and profitability. Besides, it will also help sellers to resolve any business challenges to ensure business growth. 

Adopting a flexible strategy that facilitates quick responses to make changes and adjust promptly is crucial. As a result, the ability to be decisive will help develop and maintain competitiveness in business. 

6. SIPP Program

Formerly known as Ships in Own Container (SIOC), the Ships in Product Packaging (SIPP) program allows sellers who use FBA to ship products to customers in their original package. The products under SIPP are deemed quality without needing any Amazon-added material. The seller benefits in these ways from SIPP:

• Connect with customers by displaying their brand during delivery. Boost customer experience by minimizing excess packaging.
• Low fulfillment costs and carbon footprint for packages certified as extra-large in the US.
• Improve sustainability by using less packaging and space to transport the packages to their destinations.

If you ship products in their original packaging, you save money on each unit, but you must ensure the product will survive the journey and reach the customer in good shape. The money you save will be between $0.04 to $1.32 and will depend on item size and weight. All US sellers who use FBA can join the SIPP program. Below is a summary of the already implemented Amazon fee adjustments:

Coping with Amazon Fee Adjustments

It’s unwise to operate a business with high revenue and little gain, which is the case with most Amazon sellers. Due to the fee adjustments implemented since January, sellers need to review the changes and make changes in pricing to ensure they maximize profits. Here are some ways sellers can survive the fee structure adjustments:

1. Sellers can move products to the “Ships in Product Packaging” (SIPP) program to enjoy the fee reduction. However, the incentive is only effective if the seller has a product that can be adapted for the program.
2. Ensure there’s a balance in supply and demand. The low-inventory-level fee can harm a business, especially for sellers who can’t handle a four-week inventory. Sellers should aim at 45 days of stock for every product in their catalog to: 

• Cover the risk of running out of stock
• Accessibility for customers
• Escape the new Amazon low-inventory-level fees

1. Reduction in non-peak monthly storage fees. The offset will be in effect from January to September, and it should help sellers balance stock increases to avoid low inventory fees.
2. Reduction in referral fee for apparel products costing under $20. The referral fee for items under $15 will decrease by 17 - 5%. Products costing between $15 and $20 will rise from 17 - 10%, and Amazon is using this strategy to fight cheap fashion competitors like Shein.

Some of the changes in Amazon fee structures were implemented in January, with the apparel referral fee taking effect in April, and others are expected to keep coming. 

Frequently Asked Questions

What are the new Amazon seller fees I should know about?

The new Amazon seller fees have increased slightly since January, but FBA fulfillment fees on standard-size packages have decreased. So far, Amazon has implemented several fee changes, and sellers should analyze and adjust their product prices accordingly to ensure they’re running a profitable business. 

Are there new policies Amazon has implemented? 

Since June 1, Amazon has introduced a returns processing fee for consistently high-return rate products in all categories. However, the new policy excludes apparel and shoes. According to Amazon, the fee will only apply to products with a consistent return ratio that exceeds the category-specific threshold. 

What is the FBA fee on Amazon?

The FBA fulfillment fee (pick-and-pack fee) is the charge Amazon imposes per unit for finding, labeling, and shipping the items to customers. The cost depends on the item’s category, size, weight, and the location to which it’s being shipped.

What is the primary business strategy for Amazon 2024?

The primary business strategy for Amazon 2024 is to provide fast delivery, expand grocery and drone services, and woo more Chinese sellers even as the competition rises.

What is Amazon’s seller fee percentage?

Amazon’s seller fee percentage is 15% of every product’s selling price, regardless of the fulfillment method. Besides the seller fee, Amazon FBA also charges two other fees: inventory storage fees and fulfillment fees. 

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In Summary

The shift in Amazon selling fees in the US in 2024 has brought up some new fees, especially for FBA sellers. Therefore, as a seller, you must pay keen attention to any price shifts on Amazon to ensure maximum profits. By analyzing all fee changes and finding ways to work around them, Amazon sellers can still offer customers the necessary service and make profits.

While Amazon continually evaluates prices, different factors usually influence decisions. However, the common belief that Amazon increases prices based on search behavior is false. Price reviews are common in e-commerce and businesses, including Amazon. They adjust prices according to market trends and other factors unique to a specific company.

In 2024, Amazon has implemented several fee changes that offer great value and allow partners to continue growing with them. These fee adjustments aim to provide customers with fantastic service while cutting down on collective costs. 

After the multiple fee changes, sellers will notice the average increase per unit, which is way lower than what other logistics providers are offering. Although Amazon’s fulfillment fees per unit sold remain low, third-party logistics providers may notice and try to match the level.

Lowering the outbound fees while introducing new inbound fees can reduce how sellers sell inbound products to Amazon. Additionally, sellers must ensure the return ratio is low to avoid paying for consistent returns and have inventory that lasts more than four weeks to escape the low-inventory-level fees.