|Tue Feb 14 2012 11:43:53|
Will Amazon's Latest FBA Seller Fees Change How You List?
By: Julia Wilkinson
Amazon's FBA ("Fulfillment by Amazon") fees for Pick & Pack changed on Feb. 1 for many types of items: for media items under $25, the "Pick & Pack" fee went up from $.60 per unit to $1.00 per unit. For non-media items under $25, the Pick & Pack fee went up from $.75 to $1.00 per unit.
The increase also affected oversize Items; the Pick & Pack fee going up to $6 per unit from $3.
Also, in a change that will likely see a big decrease in the amount of small and/or lightweight items shipped to FBA warehouses, the "Weight Based Handling Fee" (per pound), while going down from $.40 to $.37, will also be based on items being rounded up to the nearest pound.
This means if you sell six 4 oz. items, the cost to handle them will not be based on 24 ounces, but 6 pounds, as each 4 oz. item will be rounded up to one pound.
Most of what I ship to Amazon via FBA are standard-size books, but I have shipped a number of small, lightweight books that are more like pamphlets or brochures (most on obscure topics; those tend to sell better anyway), along with bigger books as well. Now I will be keeping those small, thin books exclusively in my home office, which won't be difficult as you can easily store a whole mess of them in one or a few cardboard office boxes.
In terms of the oversize items, unless they are high dollar-value items where the new $6 Pick & Pack fee is negligible, it won't be worth it for me to ship these big "coffee-table" books to Amazon. More likely, I will be stacking them into something like a "coffee table" of their own...one made of many oversize books!
For Amazon sellers, there is also pressure not to send stuff to FBA that's going to fester unsold for more than a year; long-term storage fees of $22.50 will be applied to any units have been stored in an Amazon fulfillment center for one year or longer, according to the Amazon FBA Manual. (This is in addition to the regular Inventory Storage Fee, but Amazon will not charge you if you make a request "to remove or dispose of the Units prior to the fee being charged").
While it's impossible to know exactly what will sell in under a year, you can look at cues like an item's sales rank, and how quickly the same item has sold for you in the past. (My vintage Betty Crocker cookbooks, for example, rarely go unsold for more than a few months if they're priced fairly).
Still, I will be sending fewer items I'm not sure about to Amazon's FBA warehouses from now on.
If you sell on Amazon and use FBA, how will the fee changes affect your selling practices, if at all? Do you use FBA now or just store your inventory yourself? If you do not use FBA now, would these fees change whether you decide to try it or not? Post a comment here! You can also comment in the AuctionBytes Facebook Group.