Amazon Fee Changes 2023: Significant Fee Updates

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 FBA fulfillment fees, the majority of which will take effect on January 17, 2023. 

The upcoming Amazon fee changes are brought about by multiple factors affecting Amazon’s business operations and the eCommerce industry in its totality. The current fuel prices, inflationary pressure, some persisting COVID-19-related challenges, and recessionary concerns primarily cause such updates in Amazon fees.

Amazon Fee Changes in 2023 | 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, and returns processing.

To further enlighten sellers on the changes in the Amazon fees next year, here are some core fee adjustments to be implemented in 2023. 

Significant Amazon FBA Fee Updates for 2023 

Amazon Referral Fees Update 

Amazon has announced that the referral fees for their products will remain the same, but they will be removing some categories of fees. These categories include the following:

• Collectible Coins 
• Entertainment Collectibles 
• Sports Collectibles
• Collectible Cards

As a result of this change, some of the products affected by these categories may be reclassified into a different category that is more suitable for them. Consequently, this could potentially result in different referral fees for these reclassified products, with some being lower and others being higher.

FBA Fulfillment Fees Update in Relation to Fuel & Inflation Surcharge

Amazon introduced a surcharge for its FBA fees earlier this year due to expected temporary cost increases. However, these costs have not decreased as quickly as anticipated, so Amazon will adjust its standard FBA fee rates to reflect these ongoing increases and remove the separate Fuel & Inflation Surcharge.

For FBA fees in 2023, Amazon will remove the Fuel & Inflation Surcharge and adjust its standard FBA rates to account for ongoing increases in costs due to fuel prices and inflation. 

Amazon FBA Fulfillment Fees Changes for Apparel in 2023

Amazon plans to increase its FBA outbound fee rates by an average of $0.22, which is lower than the fee increases announced by other fulfillment and logistics providers. To better align fees with shipping costs, Amazon will also introduce more granular weight tiers for FBA outbound fees.

Amazon apparel will use the greater unit weight or dimensional weight to determine the shipping weight for all large standard-size products starting February 16, 2023. You can check the table below for the updated Amazon FBA fulfillment fees for apparel in 2023.  

Amazon Seller Central: A screenshot (cropped of) FBA Fee Changes, Retrieved December 27, 2022, https://amzn.to/3Z4uyDE

For non-apparel products, Amazon will likewise update its FBA fulfillment fees for next year. The 2023 US FBA fulfillment fees for non-apparel will also take effect on January 17, 2023, having the following changes: 

Amazon Seller Central: A screenshot (cropped of) FBA Fee Changes, Retrieved December 27, 2022, https://amzn.to/3Z4uyDE

Fulfillment Fee Changes for Dangerous Goods

The new FBA fees for dangerous goods in the US will become effective on January 17, 2023. You can refer to the table below for more information about the Amazon fee changes for hazardous materials or hazmat. 

Amazon Seller Central: A screenshot (cropped of) FBA Fee Changes, Retrieved December 27, 2022, https://amzn.to/3vjtIVF

FBA Monthly Storage Fee and Aged Inventory Surcharge Changes in 2023 

Amazon is making some changes to its FBA monthly storage fees. Effective February 1, 2023, the off-peak monthly storage fees for standard-size products will increase. These changes will be reflected in March 2023 charges for storage that occurs in February 2023. 

In addition, starting October 1, 2023, the peak monthly storage fees for oversize products will also increase. There will be no changes to the peak monthly storage fees for standard-size products. These changes will be reflected in November 2023 charges for storage that occurs in October 2023.

You may refer to the table below concerning the upcoming changes of Amazon FBA fee changes for both off-peak and peak monthly storage fees. 

Amazon Seller Central: A screenshot (cropped of) FBA Fee Changes, Retrieved December 27, 2022, https://amzn.to/3VuR2L1

FBA Aged Inventory Surcharge

Beginning April 15, 2023, Amazon will make changes to the aged inventory surcharge for inventory stored between 271 to 365 days. 

In addition, Amazon will introduce new tiers for the aged inventory surcharge on inventory aged 181 to 270 days for all products except those in the clothing, shoes, bags, jewelry, and watches categories in the US. 

The eCommerce giant will also continue to charge an aged inventory surcharge for units stored for more than 365 days. To better understand this particular Amazon  fee increase, you can refer to the table below:

Amazon Seller Central: A screenshot (cropped of) FBA Fee Changes, Retrieved December 27, 2022, https://amzn.to/3GmmCpO

Returns Processing Fee Changes – Seller Fulfilled Returns

Starting January 14, sellers will be responsible for any carrier shipping correction charges on customer returns of seller-fulfilled orders that are caused by incorrect return label information. Such corrections can result in a credit or charge to the seller’s account, depending on whether the seller overpaid or underpaid for the original shipping label. 

Amazon has stated that seller accounts will be charged or credited if the (i) dimensions, weight, or both of the returned products do not match the product listing or (ii) outbound shipping label or if the return address is incorrect or undeliverable. 

A fee of $18 will be charged for every package that cannot be returned due to an invalid return address. Sellers are required to ensure that their return address is in the same country as their store and is able to accept returned packages.

Returns Processing Fee Changes – FBA Sellers 

Amazon will likewise implement changes concerning returns processing fees for FBA sellers. Starting January 17, FBA sellers can use the updated size tier of their product to help them determine which rate card applies. You can refer to the table below for updated rates:

Amazon Seller Central: A screenshot (cropped of) FBA Fee Changes, Retrieved December 27, 2022, https://amzn.to/3hTcX0w

 

Final Thoughts 

The upcoming Amazon fee changes are relatively minimal. However, you should take time to examine these fee increases in relation to your profit margin. The use of Amazon seller tools like an Amazon FBA calculator and an Amazon repricer can help you manage the upcoming changes successfully.