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Tue Aug 16 2022 13:37:21

Amazon Institutes Holiday Fee Hike for FBA Orders

By: Ina Steiner

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Sellers who use Amazon to fulfill their orders will pay at least 35 cents more per item sold during the holidays, the company informed sellers on Tuesday, and likely much more depending on the package weight and dimensions as well as the origin and destination. 

In raising FBA (Fulfillment by Amazon) fees, Amazon cited increased operating costs during the peak season. "We have previously absorbed these cost increases, but seasonal expenses are reaching new heights," it said.

"Similar to other major carriers, we will introduce a holiday peak fulfillment fee from October 15, 2022, to January 14, 2023."

Amazon sellers who don't use FBA will also pay higher shipping during the holidays for the most part, since UPS, FedEx, and USPS all institute peak holiday surcharges.

Amazon told sellers, "The entire industry sees increases in fulfillment and logistics costs during the holiday peak period due to the concentrated volume of shipments."

Amazon told sellers FBA continues to provide a "great value" for sellers: "With this change, Amazon's fulfillment fees during this peak period will remain an average of 30% less expensive for slower standard shipping methods than other major third-party logistics providers, and an average of 70% less expensive than comparable two-day shipping alternatives."

There are reports that the holiday peak charges also include higher fees for storing inventory* in Amazon fulfillment centers during the holidays - we're awaiting word from Amazon on whether that's the case.

*Update: Amazon said there are no increases this year in the storage fees it charges during peak.

Amazon posted the announcement on Seller Central where sellers can find links to details. Let us know how the holiday surcharge fees impact you.



Comments (3) | Permalink

Readers Comments

Perminate Link for Amazon Institutes Holiday Fee Hike for FBA Orders   Amazon Institutes Holiday Fee Hike for FBA Orders

by: CamoChique This user has validated their user name.

Thu Aug 18 00:07:40 2022

We are going to try to raise prices on some of our more expensive items because of the FBA increase, but most of our items are already at the most competitive price we can list them at so there's nothing we can do but trust in God to make it up!

Perminate Link for Amazon Institutes Holiday Fee Hike for FBA Orders   Amazon Institutes Holiday Fee Hike for FBA Orders

by: CamoChique This user has validated their user name.

Thu Aug 18 00:09:23 2022

We plan to try to raise some of our higher end goods $1 but most of our products are already maxxed out and we can't raise the price and stay competitive. We'll have to trust Christ to make up the difference this holiday season.

Perminate Link for Amazon Institutes Holiday Fee Hike for FBA Orders   Amazon Institutes Holiday Fee Hike for FBA Orders

This user has validated their user name. by: Bidonmine

Thu Aug 18 11:37:34 2022

I have raised prices on everything, even the items I sell in local stores (booth rental). Everything is going up.



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