Amazon Seller 2024 Fee Updates: What You Need to Know

As 2023 draws to a close, Amazon sellers must stay informed about the upcoming changes in Amazon’s fee structure for 2024. These updates are designed to streamline operations and offer a more cost-effective approach for the Amazon seller, ultimately contributing to shared success on the platform.

Fundamental Fee Changes and Updates:

1. Fulfillment and Inbound Placement Service Fees:

   • Introduction of an inbound placement service fee for standard and Large Bulk-sized products, averaging at $0.27 and $1.58 per unit, respectively.
   • Outbound fees reduction for standard-sized and Large Bulk-sized products by $0.20 and $0.61 per unit.
   • These changes aim to optimize product distribution and lower transportation costs.

2. FBA Fulfillment Fee Adjustments:

   • A decrease in FBA fulfillment fee rates, encouraging more efficient usage of Amazon’s fulfillment network.
   • Additional discounts for products under the Ships in Product Packaging (SIPP) program, effective February 5, 2024.

3. Low-Inventory-Level Fee:

   • A new fee for carrying consistently low inventory levels relative to sales encourages sellers to maintain healthy inventory levels.

4. Storage Fee Reductions:

   • Reduction in non-peak monthly storage fees for standard-size products to encourage sufficient inventory levels.

5. Referral Fee Adjustments:

   • Reduction in referral fees for apparel products priced below $20, effective January 15, 2024.

6. Expanded Services and Benefits:

   • New pricing for Amazon Vine, US FBA New Selection program benefits expansion, and Supply Chain updates by Amazon rates and benefits.

7. Returns Processing Fee Expansion:

   • Application of returns processing fees to high return-rate products across all categories, excluding apparel and shoes.

Conclusion:

The fee changes for 2024 reflect Amazon’s commitment to offering value while optimizing service delivery and reducing collective costs. These updates are not just about adjusting fees but are part of a broader strategy to enhance efficiency, customer satisfaction, and seller success on the platform. As we embrace these changes, sellers are encouraged to review their strategy and adapt to leverage these adjustments effectively. 

After reviewing the changes above, check how they affect your cash flow; you can read more about cash flow management in our previous blog post – here.

For a detailed breakdown of all the fee changes, sellers can visit Amazon’s fee changes summary.

We at Bullseye Commerce wish all our fellow Amazon sellers a prosperous holiday season and continued partnership in the coming year.