In our blog this month, we have already talked about fee adjustments for service providers and software companies. Amazon is now also pulling out the fee adjustment card in the Amazon FBA area and will be introducing new prices from February 2024.
We have summarized the most important information about what you can expect from Amazon in 2024 for you here.
Table of contents
- Adjustment for domestic shipping
- Long distance shipping fees make shipping to the UK more attractive again
- Product packaging without additional shipping packaging receives a discount
- Charging a fee for low stock levels in the PAN EU program
- Warehouse usage fees: Surcharge for users on the Professional tariff
- Additional adjustment of surcharges for oversize items
- Get active and don’t sleep through price increases
Adjustment for domestic shipping
Good news first: no changes are planned for Amazon FBA merchants from Germany for the time being. France, Italy and Spain are also not affected. However, all other countries, i.e. the United Kingdom, the Netherlands, Sweden, Poland and Belgium, have already received a fee adjustment for domestic shipping. However, the roll-out of these new shipping fees is not planned until 05.02.2024.
You can take a closer look at the new prices that will apply from February in Revoic’s blog. For each package size and weight, there is an adjustment to the disadvantage of the seller for the 5 countries mentioned.
Long-distance shipping fees make shipping to the UK more attractive again
What exactly is distance selling again? Since 2020, the term distance selling has been used for international trade in goods. “According to the 2020 Annual Tax Act, distance selling is defined as the cross-border delivery of goods within the EU or from a third country to an EU member state. The distance seller is therefore the online retailer.” You can read a more detailed definition of the Annual Tax Act here.
Amazon is now lowering the prices for these international shipping fees from 05.02.2024. This includes shipping from France, Germany, Italy and Spain to the United Kingdom. Although this is a disadvantage for sellers based in the UK, as they will not be subject to a price reduction, the adjustment will make it more attractive for FBA sellers from the EU to send more goods to the UK again.
Product packaging without additional shipping packaging receives a discount
The FBA fees for products that do not require packaging for shipping because they are already packaged will be reduced from 05.02.2024. Amazon thus rewards optimized shipping without additional packaging waste. The program is called “Shipped without additional Amazon packaging” internally at Amazon. Only separately licensed products may participate. Please note that special sizes or bulky goods and others that do not fall into this category will not receive a discount.
The discounted packaging program will be available from February in the United Kingdom, Germany, France, Italy and Spain. Other countries from the Amazon PAN EU program are not affected.
Charging a fee for low stock levels in the PAN EU program
To ensure that Amazon does not have to permanently pay for the storage of items, especially those with small inventories, a storage fee will be charged with immediate effect. From 01.04.2024, this will also affect FBA sellers who participate in the PAN EU program and have their goods stored in foreign warehouses and shipped from there.
The calculation of this fee is based on the size of the items, the storage time and a very specific formula for the calculation. If necessary, contact Amazon support to find out whether you or your items are affected by the fee. If necessary, take action and arrange a return shipment. Check the required quantity of your items and the forecast shipping volume.
There is also an increase in the fee for the storage of old stock. Old stock refers to Amazon items that have been stored for more than 271 days. Although there are price scales depending on the days of storage, you should be prepared for the increased costs from 15.02.2024. Amazon makes its sellers
Storage usage fees: Surcharge for users on the Professional tariff
There will be a further increase in fees from June 2024. From 01.06.2024, there will be a further increase in fees, but only for users of the Professional tariff. Warehouse usage with more than 22 weeks for FBA items will be increased. Again, there are some exceptions to the new regulation that you should definitely check. Goods from the clothing, shoes and bags ranges, for example, are not affected.
Additional adjustment of surcharges for oversize
Last but not least, from 01.07.2024, the surcharge for pan-European shipping of oversized products will be abolished if the store has stock in the country of sale. This change affects sales in stores in Germany, France, Italy and Spain.
If the product range for pan-European shipping is not available in the country of sale, Amazon will take measures to relocate the stock to the relevant EU logistics centers. Eligibility for the surcharge is determined by a new key figure, the historical inbound sales quantity. This identifies the difference between the historical inbound receipt quantity and the historical inbound sales quantity of a particular item in a store eligible for pan-European shipping.
The surcharge for an item in the following week is only applied if the historical inbound sales quantity is below zero in the long and short term (last 150 days and 30 days respectively). The key figure is updated weekly for products in the German, French, Italian and Spanish Amazon Store.
It should be noted that the oversize item surcharge does not apply to sellers who are new to the pan-European shipping program (less than 365 days prior to the fee calculation) and to FNSKUs that are new to the pan-European shipping program (less than 180 days prior to the fee calculation).
Get active and don’t sleep through price increases
You will be invoiced for the new prices in the month following the price adjustment. Take action promptly, check whether you are affected and consider suitable measures to avoid any price increases.