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One Way Amazon Sellers Can Mitigate FBA Fee Hike

One Way Amazon Sellers Can Mitigate FBA Fee Hike

There’s one way Amazon sellers can help mitigate the FBA fee hike announced on Friday and going into effect in February: sell an item no one else is selling on the marketplace. Easier said than done, no doubt!

Amazon has always recognized that expanding its selection is a winning tactic – the FBA fulfillment program itself is an example. The new FBA New Selection program encourages sellers, including brands, to list new products to help meet that goal by offering limited-time waivers for certain fees.

The company explained:

“Last March, we initiated a promotion offering free monthly storage and removals for new-to-Amazon ASINs, subject to limitations. Based on the success of the promotion, we are creating a new, enhanced program called the FBA New Selection Program.

“For new-to-FBA ASINs, we will offer free monthly storage, free removals, and free FBA returns processing for a limited time.

“For sellers new to FBA, we will also offer an inbound transportation discount.

“The program is subject to limitations and eligible sellers must opt in.”

Two major caveats, however, as explained in the FAQs:

Am I limited to sending 50 or fewer units to fulfillment centers?
You can send in as many units as you like. However, only the first 50 units of each eligible ASIN that are received at fulfillment centers will qualify for the fee waivers.

If I create more than 500 new-to-FBA parent ASINs, can I remove some from my eligible ASINs list?
Only the first 500 new-to-FBA parent ASINs that you create will qualify for the fee waivers. Any new ASINs you create after the first 500 will not qualify. However, the 500-parent-ASIN limit will be reset on April 1 each year.

Amazon is announcing the “New Selection” program at the same time it announced a fee hike for FBA sellers as well as changes to referral fees, which take effect in February.

The FBA New Selection program will launch April 1, 2020 in the US, Europe and Japan.

Learn more about the new referral and FBA fees and leave a comment on the AuctionBytes Blog.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.