Amazon Seller Fees 2024: What You Need to Know

With each new year,  there will be changes to Amazon seller fees, and 2024 will have both increases and decreases. These changes are not going to affect all sellers equally and how you run your business will affect how they impact your bottom line.

Amazon has said that some changes, such as separating inbound and outbound fees, are meant to improve efficiency and place items closer to customers. That means, in a practical sense, that many of the changes — including increases and decreases in fees — are meant to incentivize you as a seller to conduct business the way Amazon wants you to.

That doesn't mean this is some kind of power play. With so much of its business depending on how third parties operate, it makes sense for Amazon to incentivize operations that benefit the company. The key to ensuring these changes don't hurt you is understanding them as well as possible.

If you want to ensure your business strategy maximizes the benefits of selling on Amazon, follow along as we break down Amazon merchant fees in 2024.

Important Dates and Deadlines

Some of the projected dates for fee changes have already passed, but others will not arrive until as far ahead as this summer.

• January 15: Amazon lowered the referral fee in graduated steps for apparel priced under $20 and those priced under $15.
• February 5: Lower fulfillment fees start for products that can ship in their own packages — part of the Ships in Product Packaging (SIPP) Program — with discounts ranging from $0.04 to $1.32.
• March 1: New inbound placement service fee for inbound products averaging from $0.27 to $1.58, depending on weight and size. Fees will be charged 45 days after the product is received by Amazon. Amazon says this reflects the cost of distributing inventory close to customers.
• April 1: A new low-inventory fee intended to discourage sellers from maintaining consistently low inventory levels relative to unit sales. Again, Amazon stated this fee reflects the costs it incurs from such practices.
• April 1: Amazon has made a concession to address the need for sellers to maintain inventory to avoid the low-inventory fee. The company will reduce the non-peak monthly storage fees for standard-size products by an average of $0.09 per cubic foot, taking the average from $0.87 per cubic foot to $0.78.
• April 15: Just in time for tax day, fulfillment by Amazon (FBA) sellers will see a per-unit fulfillment fee reduction of — on average — $0.20 per unit for standard-sized products and $0.61 per unit for large, bulky-sized products.
• June 1: Aside from apparel and shoes, all product categories will now be subject to a returns processing fee applied to high return-rate products.

Inbound and Placement: Optimizing Inventory Distribution

One of the biggest headlines is how Amazon is responding to seller inventory management practices. While no one likes paying more, the FBA sellers who will come out on top of these changes are those who are savvy in optimizing their inventory management to minimize costs. That means doing more than just following some plan you come across from another seller. Amazon sellers will need to make sure they actually understand the fee structures and their own inventory needs to get the best balance.

As mentioned above, the average inbound placement service fees taking effect March 1 will be $0.27 for standard and $1.58 for large bulky items. However, sellers who determine how to consolidate shipments strategically and analyze demand for specific products can streamline their inbound product shipments to minimize the impact of the new fees.

For instance, instead of sending five small boxes to separate centers, analyze demand patterns and group products destined for similar regions into one larger shipment. This not only minimizes the inbound fee but also triggers potential volume discounts. Amazon also stated that it will give sellers the option "to pay reduced fees or even no fee based upon whether you send your shipment to a single location or multiple locations." If you are particularly good with juggling how you ship your products, you may not even have to pay the inbound placement service fee.

Lower FBA Fulfillment Fees on Outbound Products

While you will have to wait until April 15 to get the benefit from it, lower Amazon FBA rates for outbound fulfillment may help offset the hassle and/or cost of paying more for inbound shipping. As mentioned above, this will mean a projected average decrease of $0.20 per unit for standard items and $0.61 for large or bulky products.

Depending on your specific situation and adjustments you make to handling outbound shipping, the fulfillment fee decrease could offset any added cost. It might even actually add to your bottom line. Amazon will also continue its practice of giving a $0.77 discount on per-unit Amazon sales fees for products priced below $10.

Striking the Balance: FBA Inventory Management in 2024

If you have been an Amazon seller for any amount of time, you already understand the importance of inventory management to avoid understocking, overstocking, and fees with FBA. The new Amazon fees don't change the need to balance that equation, but they do change what goes into that equation. Amazon appears to be doing this as a carrot-and-stick way of incentivizing merchant inventory practices that are beneficial to the company as well.

The stick here is the low-inventory fee going into effect on April 1. The fee will kick in when seller inventory drops below a four-week sales cushion. However, for seasoned sellers who already deal with proactive forecasting and adjusting for inventory fluctuation, this should not be a difficult hurdle to overcome. Simply, it wasn't a hurdle you had to think about in the past.

Of course, there is also the carrot. A reduction in non-peak monthly storage fees on standard-sized items will come into effect at the same time as the new low-inventory fee, with the intent of making it easier for sellers who were maintaining low inventory to reduce their cost to sell on Amazon. At an average of $0.9 per cubic foot, it isn't a huge discount, but it is another part of the overall equation sellers are going to have to learn to master.

Finding the Opportunities in the Fees

One way sellers may consider shifting is to smaller, lower-priced items. Not only can you store more for less, but apparel sellers will get a fee break that can quickly add up starting January 15. Instead of paying 17% on apparel products under $20, the referral fee is now down to 10%. At $15, that referral fee drops down to 5%.

If you have ever considered expanding your product lineup, March may be the perfect time to pull that trigger. The U.S. FBA New Selection program is getting a benefits expansion on March 1. Amazon says it will provide "an average 10% rebate on sales of eligible new-to-FBA parent products, newly including these benefits for non-branded selection." Amazon is also encouraging sellers to use the Amazon Vine program with added benefits associated with the FBA New Selection program.

Attacking the New Year Head-on

As you navigate amazon seller charges in 2024, the watchword will be adaptability. Amazon wants merchants to work within its cost concerns, so it is passing those cost concerns on to merchants. The company has also set up incentives that benefit sellers rather than just penalizing them, and it is possible that, with the right strategy, you could actually benefit in the long run from these changes.

By optimizing inventory distribution, leveraging potential volume discounts, and employing strategic shipping practices, seasoned FBA sellers can not just survive but thrive under these latest changes. That includes learning to delegate and offload all the tedious and data-intensive tasks that can be done more efficiently by a reliable partner like Mayan. If you’re ready to discover how much further your Amazon FBA business can go with Mayan, sign up today.

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