Amazon is lowering standard FBA rates for all low-price products in 2 months. While sellers who use Amazon FBA fulfillment can currently apply for lower rates for certain items through FBA “Small and Light,” Amazon will end that program on August 29 when the new pricing takes effect.
In its announcement to sellers on Thursday, Amazon said it had learned that offering lower fees for lower-priced products helped improve selection for customers, and it cited the continued improvements it had made in speed of delivery.
Amazon didn’t say what the new fees would be, but they will apply to all items priced under $10. It didn’t mention if the rates would vary by weight.
For those who use FBA to sell cheap, fast-moving items, but didn’t qualify for Small and Light, it’s good news. And sellers of items that make for good stocking stuffers will catch a break: Amazon said eligible items would automatically receive the low-price rates and would not be subject to 2023 holiday peak fulfillment fees.
So what’s the bad news? Amazon FBA Small and Light offers lower rates for items priced under $12. Sellers reacting to the news were not pleased to see Amazon lowering the cap from $12 to $10. One poster said sellers need to evaluate items they sell that fall in the $10-$12 range – “either a price hike to account for the shipping increase or take a margin loss.”
“If anything the price should have increased from $11.99 to 12.99, not gone backwards,” another seller said – especially in light of inflation, said another.
One seller wrote, “If Amazon brought it up to $20, I would lower my prices to under $20 and I think the volume increase would be a triple win – Amazon, customers and our business.”
But another seller theorized, “I bet they are going to implement a $10 minimum for prime and thus everything less than that will become a sort of add on item.”
In making the announcement, Amazon also revealed when the higher FBA holiday peak fees will apply: from October 15, 2023, through January 14, 2024.
“another seller theorized, “I bet they are going to implement a $10 minimum for prime and thus everything less than that will become a sort of add on item.””
Would love to hear thoughts on whether it’s likely Amazon would change Prime benefits so only orders $10 and above would get free shipping through the program.