Amazon fee increases will be right on schedule this year and, in comparison to the past couple of years, Amazon fees 2022 will show some of the biggest increases of Amazon marketplace charges for sellers.
Amazon shared the upcoming changes in a post on Seller Forums last month, announcing that the first hike of Amazon Seller Fees will start with Amazon’s FBA fulfillment fee changes set to take effect on January 18, 2022.
Although some sellers are dissatisfied with the changes, selling on Amazon fees are an inevitable part of doing business on the platform. So, if you’re going to continue making a profit in 2022, all you can do is prepare!
We’ll be breaking down the most important changes coming to Amazon selling fees and arming Amazon Sellers with everything you need to know to plan for the new Amazon fee 2022 increases.
What are the new Amazon Fee 2022 Changes?
As an Amazon Seller, you’ll be paying more than double for some Amazon seller fees in 2022.
The rising cost of selling on Amazon fees will include everything from storage fees, new aged inventory parameters for surcharges, and changes to fulfillment and referral fees.
Sweeping across the board, we will see Amazon seller fees changes (increases, in most cases) in all 5 of the following categories:
- Fulfillment Fees
- Storage Fees + Aged Inventory Surcharge
- Removal & Disposal Fees
- Small & Light Fees
- Referral Fees
5 Major Changes To Amazon Fees 2022:
- FBA fulfillment fees will increase at 5.2% on average with fees and percentage increases spanning all size tiers from standard to oversize.
- Monthly storage fees will increase significantly.
- Storage fees for standard and oversized items will increase at about 10.5% from January to September with zero increases during peak months (October to December).
- A significant increase in removal and disposal fees.
- For every product size (minus the smallest one), you can expect to see the removal or disposal order fees rise by more than 2x the previous fee.
- The small and light program will now allow for products up to 3lbs (used to be 12 oz max).
- Finally, referral fees will pretty much remain the same with just one decrease for lawn mowers and snow blowers.
Read on for details about each change and how it affects Amazon commission rates.
AMAZON FEES 2022 BREAKDOWN
With all the new businesses and increase in traffic to Amazon, FBA is in high demand- which, in turn, means more competition, more rules, and changing policies.
We are beginning to see a trend towards weeding out and controlling FBA inventory, which started with Amazon’s 2021 adjustments to FBA inventory limits and even tighter inventory controls- and we can only expect that things will continue to become even more strict as we move forward.
Sellers who use Amazon FBA fulfillment services will face Amazon selling fees adjustments for FBA fulfillment fees with increases to services and Amazon fees changes across categories.
The categories include Core FBA fulfillment fees (excluding apparel), FBA fulfillment fees for apparel, and FBA fulfillment fees for dangerous goods.
In summary: The cost of selling on Amazon fees for FBA fulfillment will ultimately rise for all categories in 2022 and beyond.
AMAZON FBA FULFILLMENT FEES 2022
Expect increases that range anywhere from 2% to 12% – with the largest increases hitting the oversize tier categories. Each small standard category will see an increase of 8%.
- Smallest items will see a $0.22 increase
- Larger items will see a $0.27 increase
Overall, that breaks down to the following percentages:
- An overall 4.8% median increase for standard size items
- Up to 7.5% increase for small standard size items
- Up to 2.8% increase for small oversize items
- 12.1% & 7.8% increase for medium & large oversize items
- Approx. 10% increase for apparel items
Although some of the fulfillment fee increases may seem small, these changes could put some sellers in tough positions and at risk for a decline in sales- especially if you’re already dealing with thin margins.
MONTHLY AMAZON STORAGE FEE CHANGES
Starting February 1, 2022, off-peak monthly inventory storage fees (from January-September) will be increased.
- $0.08 per cubic foot for standard-size products
- $0.05 per cubic foot for oversize products
Source: Amazon Seller Central
AMAZON AGED INVENTORY SURCHARGE
Amazon will introduce a new Aged Inventory Surcharge in 2022 for units in fulfillment centers for 271 to 365 days.
Previously, there were no additional storage fees for items in storage for up to 365 days. However, Amazon will now add a $1.50 per cubic foot charge in addition to the storage fees mentioned above.
This means you’ll need to evaluate SKUs that sit for long periods of time and calculate how that will cost you in the coming year to make decisions about storage of those units.
The new aged inventory surcharge will take effect on May 15, 2022, for units that have been stored in fulfillment centers for 271 to 365 days.
2022 Surcharges are as follows:
- $1.50 per cubic foot monthly charge on the 15th (for units stored 271-365 days).
- $6.90 per cubic foot or $0.15 per unit (whichever is greater) monthly charge on the 15th (for units stored for more than 365 days)
*The latter is the Aged inventory surcharge- previously called the ‘long-term storage fee’)- it remains the same from 2021.
AMAZON FBA REMOVAL & DISPOSAL FEES
FBA removal fees are charged when an item is deemed as unsellable in its current condition. This is the cost Amazon charges when those items are sent back to the seller to dispose of.
FBA Disposal fees are charged when an item is deemed as unsellable in its current condition. Unlike removal order fees, which are charged when items are sent back to sellers, disposal fees are the cost Amazon charges to destroy the items for sellers.
For every product size (minus the smallest one), you can expect to see the Removal or Disposal order fees rise by over 2x the previous fee.
*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods
Source: Amazon Seller Central
To put that into perspective: [from above] a standard size tier SKU that falls within the 0.5 lb to 1.0 lb range’s shipping weight will increase from $0.35 to $0.75 per unit.
That may not seem too bad, but a 40 cent rise(114% increase) is a significant number that will add up quickly.
SMALL & LIGHT FEES
On January 18, 2022, the following FBA Small and Light program fee changes will take effect:
- Weight limit for FBA Small and Light Increases from 12 oz to 3 lbs
- Amazon will use a greater of unit weight or dimensional weight to determine the shipping weight for all large standard-size units.
- Small standard-size units will use the unit weight.
New fees are as follows:
Source: Amazon Seller Central
AMAZON REFERRAL FEES CHANGES
In 2022, the only decrease we have set is the Amazon marketplace charge for Amazon referral fees.
Amazon charges referral fees when you make a sale. The referral fees are based on the total sales price, which includes the item price and any shipping or gift wrap charges.
Starting January 18, 2022, Amazon will reduce the referral fee for lawn mowers and snow throwers. It will decrease from 15% to 8% for products with a total sales price greater than $500.
How Can You Prepare For Amazon Fees 2022 Increases?
The best way to prepare for Amazon fees 2022 is to proactively spot where your issues may come up and call the shots early.
If you aren’t already an Amazon FBM seller, the Amazon storage fee 2022 increases are significant enough for you to consider off-loading some of your storage costs outside of Amazon (especially for slower-moving units).
Create a plan of action for what you’ll do with units subject to cost you long-term storage fees and/or, eventually, removal and disposal fees.
You may consider Amazon FBM as a solution to ensure that you can still sell and make a profit.
FMB may also help bypass surcharges and additional parameters that Amazon has in place to help decongest FBA by keeping only the fastest-moving SKUs in Amazon FBA.
Overall, as an Amazon seller, you’ll need to assess and discuss any potential issues that these changes may bring and work with your team to identify the products that you may need to drop or raise prices for, in the new year.
It’s best to make decisions and check your Amazon fee calculator 2022 to come up with your plan of action before January 18, 2022.
PROVEN STRATEGY FOR YOUR AMAZON BUSINESS
With the Amazon FBA fees going up anywhere from 2% to 12% and Amazon more than doubling the Removal or Disposal Order Fees- you’ll potentially face struggles with products that are hard to sell.
And, if you end up cutting products after the new fees are in place, you will be paying a steep price for faulty strategizing.
Now is the time to calculate your risks wisely, eliminate uncertainties, and get your strategy right for 2022.
If you need help winning the buy box, reading/understanding reports, making decisions for your Amazon business in 2022, or improving your business’s Amazon Strategy, our team of Amazon experts is ready to help your business grow and conquer the marketplace.
Reach out and let’s talk about your future as an Amazon Seller in 2022 and beyond!