Amazon FBA Fee Changes: What You Need To Know

Using Fulfillment By Amazon (FBA) can radically change and improve your business. Just ask Loco Beauty, one of our customers who saw their 30 orders a day increase to over 200 orders a day by starting to sell on Amazon and utilizing their FBA.

However, this fulfillment service comes with attached fees and on February 18th and March 1st, 2016, Amazon will roll out a few different fee increases. Amazon explains the FBA fee increase is meant to “reflect the changing costs of fulfillment, transportation, storage, and customer service."

So, what does this mean for your business? We’re breaking down the fee increases you need to know about and action items to help you make the most of these changes.

February 18th Changes:

Fulfillment for Standard-Size products:

  • Order handling and Pick & Pack fees remain mostly the same. Pick & Pack increases $.02 per product for Media and Non-Media.
  • Weight handling for Large Standard Size sees the largest jump in fees for standard-sized products across all weights.

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March 1st Changes:

Monthly Inventory Storage Fees:

  • The changes here are increases by just a few cents and shouldn’t be a huge expense, but we’ll show you how to make sure these fee increases don’t eat away at your profits.

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What you should do before and after February 18th and March 1st:

We want to make sure you’re not only effectively managing your inventory, but also making great business decisions and increasing your profits. Don’t worry, we have you covered on how to get a holistic view of your business.

  • Prior to February 18th and/or March 1st, you need to run an Amazon Fees Report under the reports tab in your Stitch account. In the Settlements Report, we grouped the 200+ transaction fee types into understandable categories such as Storage Fees, Shipping Fees, or Subscription Fees. You’ll be able to see the overall change in fees and also fees by product.
  • Make sure your products are as profitable as possible with the Amazon Variant Profitability Report. We transformed your Amazon Settlements Report into a variant view that will help you clearly see the average price, cost, and profit for each of the products you are selling. No more wading through rows and rows of numbers!

With these reports in your Amazon tool belt, it will be easy to see how these fee increases will affect your business. Not yet using Stitch to streamline your multichannel operations? Sign up for a Free 14-Day Trial or a Custom Demo today!



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