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Regular readers of this blog might remember the FBA fee changes we mentioned briefly in our article on Amazon changes in 2021. As these changes come into effect from the beginning of June, now seems a good time to assess them in more detail. This article will look at the new way that the weight of your products will be calculated, as well as what is changing when it comes to storage fees and removal fees. Without further ado, let’s take a look into what is happening to Amazon Fulfilment fees next month.

Why Are Amazon Making Changes To FBA Now?

 

You might be wondering why these alterations are only being implemented now, as opposed to the beginning of the year like usual. Amazon delayed these fee changes in order to support sellers through the coronavirus.

 

Amazon invested heavily in FBA throughout the pandemic in order to keep up with the huge increase in demand for ecommerce. Since the coronavirus first became worldwide, Amazon have increased the square footage of their Fulfilment and logistic network by 50%. They even hired over 400,000 new staff.

 

You might think that the massive investment and expansion of Amazon’s Fulfilment network would have resulted in massive changes, but this is not the case.

 

What Are The Changes To Amazon Fulfilment Fees

 

The main points of interest for June’s changes are the removal of packaging weight when calculating the weight of a product and the realignment of weight categories. This means that the 4oz packaging that Amazon previously added to an items weight automatically has been removed. This could actually mean a heavy decrease in fees for some items.

 

For example, if you have a 12 oz product, this would previously have been considered a 16 oz product. Now, due to the fees being calculated just based on the products actual weight you could save just under 50% on FBA fees for this item.

 

FBA fees on the whole will be increasing modestly by about 2-3%, so make sure you are fully aware of the weights of all your items. You can check the changes for all the weights here.

FBA Removal Fees & Storage Fees

 

You will be happy to know that storage fees will not be increasing at all this year. This means you don’t have to worry about incurring any new costs for storing your items in a Fulfilment centre.

 

However, you should be aware that removal fees are actually taking a big increase. The median increase in removal fees is 28%. In fairness, this makes a lot of sense when you consider how much Amazon have to spend on the removal of items sellers forget about. This increase will likely convince sellers to be especially of their inventories from now on.

 

Due to the increase, you should definitely try to remove any unfulfillable stock from your inventories before June.

 

Conclusion – Minor FBA Changes, But Be Prepared

 

The fee changes to Amazon FBA are minimal on the most part, but sellers should definitely be aware of them in order to maintain profit margins. Ensure to check the new weights of all your items and adjust your profit margins accordingly. Also, don’t forget to make sure you have removed all your unfulfillable inventory before June!

 

Should you need more help, we would like to take this opportunity to remind you that our long history of working with Amazon and eBay sellers means we can offer you expert advice.

 

As well as helping with your Fulfilment, we would be more than happy to help you register for UK & EU VAT, the UK VAT deferral scheme, EU and UK EORI number, file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.

 

So please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.