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  • Writer's pictureALGO™ Team

Summary of Amazon FBA Fee Changes In 2020

Updated: Feb 19, 2020

On February 18, 2020, Amazon will be making changes to its FBA Fees.

For most products we tested, these changes will result in a 2-10% increase in FBA fees. Amazon pegs the increase at "about 3%" and describes the increase as "only moderate increases."

Part of Amazon's justification for the increase is Amazon's $15 billion dollar investment in infrastructure designed to help 3rd party Amazon FBA sellers increase sales.

Referral fee percentage decreases from 18% to 15% for Shoes, Handbags & Sunglasses products with a total sales price above $75.00.

Referral fee percentage for the Furniture category decreases from 15% to 10% on any portion of the total sales price above $200.00.

Amazon will consolidate personal care appliances into the Health & Personal Care category, which will lower the referral fee percentage for personal care appliances from 15% to 8% for items with a total sales price of $10.00 or less. Items with a total sales price above $10.00 for that category will remain 15%.

All activewear clothing will be charged with the Clothing & Accessories category referral fee percentage of 17%.

Ring accessories into the Amazon Device Accessories category, which has a referral fee percentage of 45%.

Amazon will discontinue the tiered fee structure for Amazon Business and apply one referral fee rate per category regardless of price. Products above $1,000.00 will be charged the same referral fee rate that currently applies to products $1,000.00 or less in each category. Previously, Amazon had charged referral fees for Amazon business on a tiered schedule were for most products, the fee decrease as the sales price increase. This 2020 change will increase Amazon Business referral fees overall.

FBA fulfillment fees are increasing by $0.10 to $0.25 per unit in nearly every category.

Removal and Disposal Fees are moving to a more tiered system in 2020. Previously, most removals of inventory from Amazon's warehouse cost a flat fee of $0.50 per unit to have the product shipped anywhere in the US. 2020 Amazon FBA removal fees will change to range from $0.25 for products under 0.5 lb to $1.90 for 10 lb items + $0.20/lb above the first 10 lb.

Small and Light long term-storage fees will fully align with standard FBA long-term storage fee schedules and rates which should result in a decrease in Small and Light long term-storage fees.

Overall, these changes seem to be designed to encourage 3rd party sellers to operate in ways that are more beneficial for Amazon's systems and bottom line without having a major impact on 3rd party sellers. Most of these changes net out (example: increasing fulfillment fees will by $0.10-$0.25 will have a proportionately larger impact on small items where profits might only be a few dollars but Amazon will also decrease long term storage and removal fees for small items).

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