Update to Amazon Europe referral and FBA fees starting March 1


#1

As we start the new year, we’d like to thank you for your continued partnership. We started 2022 expecting a return to normality as COVID-19 restrictions eased. However, fuel prices and inflationary pressure presented further challenges, some COVID-19-related challenges persisted and we’ve seen concerns about a recession arise in many places around the world. Despite these challenges, you persevered and demonstrated tremendous agility and, together, we have served customers well.

We continue to invest heavily in people, technology, transportation and infrastructure to innovate on behalf of our selling partners. We do this while also working to be more efficient and manage our costs to serve you and customers so that we can provide an amazing service that’s also great value. Today, we would like to share the updates that we’re making to our referral and Fulfilment by Amazon (FBA) fees that will take effect on March 1, 2023, except where otherwise noted.

Most referral fees will not change and we will make moderate increases to our FBA fees. To review the fee changes, go to 2023 Amazon Europe FBA and referral fee changes summary.


Dimensional Weight - Huge FBA Fee Increase
#2

So some significant changes in here

Aged stock now starts at 271 days for some categories

New FBA Storage Utilisation Surcharge which starts at 50p per cubic foot to be added onto standard storage charges. Looks like this will apply if you are not shipping sufficient volume through FBA.

For those on small and light the smallest fulfilment charge is now 86p where it was 65p previously.

Probably others as well…


#3

Will Amazon let us put our prices up to compensate or will they just remove the listings for pricing violations?


#4

I didn’t see any mention in the update of any changes to the small and light maximum price so I am assuming this is not increasing as well

It is something that needs to be looked at. I have always had products priced at or just below the £9 mark. With increasing prices from suppliers plus increased fulfilment fees I will not be able to offer this any more so I will have to use standard fulfilment with higher fees.


#5

It is going up to £10

Increase in price eligibility threshold

To help make selling on Amazon more rewarding, we will increase the price eligibility threshold of Small and Light units from €11 to €12 in the France, Italy and Spain stores. In Germany, the threshold will increase from €10 to €11, and it will increase from £9 to £10 in the UK. The price eligibility threshold will be €12 in the Netherlands, SEK 140 in Sweden and PLN 55 in Poland.


#6

That’s good news I totally missed that in the mountain of information I was reading at 7 this morning!


#7

I was expecting a price decrease with all those bots they use

[no disrespect intended]


#8

Has the 4.3% surcharge been removed or is that staying?


#9

I think I saw it’s removed and factored into these increases


#10

I think this needs to be addressed by Amazon. It is absurd that sellers have to constantly absorb increasing costs, but are not allowed to increase prices.


#11

Cool, thanks!

Can someone double check my numbers? I’m hoping I have used the wrong size categories otherwise it’s looking like a 12-34% increase in FBA fees for us.

38 x 6 x 38cm at 1.69kg dimensional weight = Small Oversize?
Old fee: £5.40 (incl. surcharge)
2023 fee: £6.06
12% increase

55 x 6 x 55cm at 3.63kg dimensional weight = Standard Oversize?
Old fee: £5.86 (incl. surcharge)
2023 fee: £7.85
34% increase

If this is right it makes more sense for us to sack FBA off and just do SFP.

(edit: the 55 x 6 x 55cm prices are wrong, thanks Dedez!)


#12

The oversize sizes don’t appear to be changing.

So for the first one looks like a small oversize to me, up to 1.76kg so yeah looks like £6.05 fees

The standard oversize though I think you made a mistake.
You said it is 3.63kg which is “Standard oversize ≤ 3.76 kg” at £6.53

£7.85 seems to be for heavier items up to 9.76kg


#13

Thanks for checking Dedez.

I was using this to check the size tiers:

At 55 x 6 x 55cm, as one side is longer than 46cm would it not fall into the Standard Oversize category?

Although if this is true it’s possible my original FBA fee for this product is incorrect. I should probably check on Amazon what size they’ve determined this is.

Edit: Just double checked, yes looks like Amazon class it as Oversize at £5.86 currently:
image


#14

I wasn’t disagreeing with your sizing, just the weight.

The fees page that is linked to the post has 10 different weight bands for Standard Oversize.

The £7.85 you quoted is for an item between 4.76 and 9.75 kg.

You said your item was only 3.63kg, which puts it in the <3.76kg price band, which is £6.53


#15

Aha, yes - well spotted. Thank you very much! :slightly_smiling_face:


#16

Still a price hike, just not as much as you thought :smiley:

I imagine customers are expecting a price rise, I’m more worried if Amazon will actually let us put our prices up :joy:


#17

A lot easier to digest at 11% however, whew :sweat_smile:

Indeed! Here’s hoping…


#18

I think the main issue here is that some of the FBA fees are increasing 20-30% with a little over 5 weeks notice, I would have retired years ago if my products had the ability to lose that kind of margin and carry on, some sellers like myself will have months of stock already at FCs to serve demand.

In the past year or so, some of our S+L FBA fees have gone from £1.42 to £2.09 which considering how aggressive the market is on these products, is completely unsustainable.

What’s even worse is that Amazon sell a very similar product that competes with us, for under £2, which is less than the FBA fee they charge us to deliver it. Work that out.


#19

Clearly that investment does not include seller support. The worlds worst support system they are unable to provide any support on any subject for a number of years.


#20

Can anyone explain this please
’ * Starting June 30, 2023, we will apply the referral fee percentage to the item list price provided by sellers using the VAT calculation service as currently applicable to all other transactions.’