Amazon Fee Changes for 2020
Amazon fees are changing for the new year and these changes are taking place February 18th, 2020. Amazon states,
“This year we invested more than $15 billion in infrastructure, programs, people, and 150 new tools and services to help our sellers grow their brands and businesses. We also invested billions of dollars to expand FREE One-Day Delivery to more than 10 million Prime-eligible items. We are thrilled with the response of our mutual customers. Thank you for your continued innovation in providing unique selection and low prices for customers.Driven by FREE One-Day Delivery, this was the largest one-year investment we have ever made in FBA. Nevertheless, in 2020, we will make only moderate increases (about 3%) in fulfillment fees, below industry average, because we remain committed to your continued success. We will also decrease select referral fees and introduce an exciting new selection program.Please review the fee change pages below. The changes will take effect February 18, 2020, except where noted.”
With that being said, let’s look at the full list below.
Amazon Fee Changes for 2020
Shoes, Handbags & Sunglasses
There will be a reduced referral fee from 18% to 15%. With a total sales price above $75.
Amazon will start consolidating outdoor furniture products in the furniture category, which will reduce the referral fee from 15% to 10%. on any portion of the total sales price above $200.00.
Personal Care Appliances
Starting February 18, 2020, we will consolidate personal care appliances into the Health & Personal Care category, which will lower the referral fee percentage for personal care appliances from 15% to 8% for items with a total sales price of $10.00 or less. Items with a total sales price above $10.00 for that category will remain 15%.
Starting on February 18, 2020, all activewear clothing will be charged the Clothing & Accessories category referral fee percentage of 17%.
Starting February 18, 2020, we will consolidate Ring accessories into the Amazon Device Accessories category, which has a referral fee percentage of 45%.
Starting February 18, 2020, we will discontinue the tiered fee structure for Amazon Business and apply one referral fee rate per category regardless of price. Products above $1,000.00 will be charged the same referral fee rate that currently applies to products $1,000.00 or less in each category. See the current Selling on Amazon Business fee schedule.
Amazon is also making changes to FBA fees. Below is a screenshot from their website.
For a complete list, visit their page here. It is important to view this page because it is very detailed and important to all sellers.
If you are new to selling, this is something that Amazon does each year to ensure accuracy. For example, Amazon states, “Each year, we assess our referral fees to ensure they reflect changing industry dynamics and costs, as well as the feedback we receive from sellers like yourself. We invest in tools and programs to increase access to more customers, and to help you grow your business on Amazon.”
So when you apply to all of the programs that Amazon offers to help your business succeed, keep this in mind.
One change that’s coming to Amazon is the Amazon FBA New Selection Program. This program allows sellers, starting April 1st, 2020 to participate in this new program that offers free monthly storage, free removals and free returns processing on eligible new-to-FBA ASINs. Participants who are new to FBA can qualify to get a $100 discount on Amazon Partnered Carrier shipping. If you want to be a part of this program, you need to opt-in. After you opt in, Amazon will determine if you will be accepted or not. (Sellers who are already participating in the monthly storage and removal fee promotion that began in March 2019 will be included automatically in the new program and do not have to opt in. When sellers enroll for the FBA New Selection program, they will be auto-enrolled for the monthly storage fee promotion. That promotion has been extended through March 31, 2020.)
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