US sellers who use an Amazon service to fulfill orders to customers in Canada and Mexico will pay more beginning June 30, 2022. It also appears Amazon may begin automatically enrolling FBA sellers into the program, requiring sellers who don’t wish to participate to proactively opt out of the program.
The service, called Remote Fulfillment with FBA, is different from FBA Export, where sellers make their offers available to customers worldwide for purchase on Amazon.com. With Remote Fulfillment, Amazon uses sellers’ inventory stored in US fulfillment centers to fulfill orders across the border directly to the customer, it explains on this Seller Central help page, where it also explained:
“The program offers Prime customers free shipping in Mexico (5 to 9 days) and Canada (7 to 12 days). Customers pay applicable import duties and taxes on the items they order and take ownership after the shipping company picks up the items from the US fulfillment center. Returns go directly back to the US and are subject to the FBA customer returns policy.”
The current costs of Remote Fulfillment with FBA and how they will change on June 30th are spelled out on this page.
In addition to rate increases, Amazon will also include a dimensional weight adjustment in its rate calculations “to better align with the standard FBA rate structure,” it announced.
In Tuesday’s announcement to sellers, Amazon justified the rate increase as follows:
“We’ve nearly doubled fulfillment capacity and added over 750,000 full- and part-time roles, and our average hourly wage in the US has climbed from $15 to $18. These investments have enabled tremendous growth for sellers, who have increased sales in our store by more than 70% during this time.
“To reflect the changing costs of fulfillment, transportation, storage, and customer service across North America, we will be adjusting Remote Fulfillment with FBA fulfillment fees on June 30, 2022. These increases are in line with or below industry-average increases for fulfillment services.”
Some sellers who use Amazon’s FBA fulfillment program who reacted to the announcement said they were notified that they would be automatically enrolled in the Remote Fulfillment program unless they opted out.