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Our Study on Amazon’s Increase in FBA Fees

Amazon & Marketplaces Inventory & Fulfillment

Canaan Wright

March 18, 2020

Increase in FBA Fees

There has been a notable update from Amazon in regards to their referral and Amazon FBA fees for some product categories as of February 18, 2020. This may not come as a surprise considering fee increases on Amazon are nothing new. They tend to increase their fees on a yearly basis.

In our study of the most recent increase, we analyzed items sold in 2019, our previous fee percentage, and current fee charges. Overall, we are seeing an estimated 3% increase in FBA fees. FBA fee increases vary by product categories, some are listed below:

  • Shoes, handbags & sunglasses: Referral fee percentage has decreased from 18% to 15% for products in the Shoes, Handbags & Sunglasses category with a total sales price above $75.
  • Outdoor furniture: Outdoor furniture products have been consolidated into the Furniture category, which will reduce the referral fee percentage from 15% to 10% on any portion of the total sales price above $200.
  • Personal care appliances: Personal care appliances have been consolidated 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 or less. Items with a total sales price above $10 for that category will remain at 15%.
  • Activewear: All activewear clothing will be charged with the Clothing & Accessories category referral fee percentage of 17%.
  • Amazon Business: Amazon has discontinued the tiered fee structure for Amazon Business and has applied one referral fee rate per category regardless of price. Products above $1,000 will be charged the same referral fee rate that currently applies to products $1,000 or less in each category.

To check your Referral and FBA fees and how they will affect your margins, follow the process below:

- Log into your Seller Central Account. Go to Reports > Fulfillment.

Amazon FulFillment reports step 1

- Under the "Payments” portion of the menu on the left, select “Fee Preview” > “Download”.


Amazon Inventory Fee Report
Amazon Fee Preview Report



- The report will appear in the queue as “In Progress”. Click “Download” under the “Report Status” column after the report has loaded.

Amazon Fee Report


 

- Note the key columns in the report you just downloaded and opened:


• Item Details: SKU, FNSKU, ASIN, product-name, brand


Amazon FBA Fee Report


• Item Category: product-group

Amazon Fee Report



• Item Dimensions: longest-side, median-side, shortest-side, length-and-girth, unit-of-dimension, item-package-weight, unit-of-weight (these dimensions determine your product size tier and FBA fee).

Amazon FBA Fee Report



• Amazon Size-Tier: product-size-tier

Amazon Fee Report


• Referral Fee: estimated-referral-fee-per-unit

Amazon FBA Fee Report



• FBA Fee: expected-fulfillment-fee-per-unit

Amazon FBA Fee Report


 - Your estimated FBA fee will be listed in column Y (expected-fulfillment-fee-per-unit) while the Referral fee for each product is listed in column T (estimated-referral-fee-per-unit). To check total fees, check Column T (estimated-fee-total).

Amazon FBA Fee Report

- Review any increases and how they affect your margins.


For more information about Amazon’s FBA fees, please refer to Amazon’s official FBA page.

 

Canaan Wright