Hooray, an Amazon fee reduction to report on! As part of their ongoing efforts to improve FBA (Fulfilment by Amazon), Amazon has announced a significant reduction in domestic and Pan-EU FBA fulfilment fees.
What, when…
It’s already begun – as of 16 September 2024, Sellers offering small oversize products have been benefiting from fee reductions of up to £1.60/€1.87 across the UK, Germany, France, Italy and Spain.
… and why?
With these lower fulfilment fees, Amazon is looking to incentivise sellers to offer a broader selection of small oversize products.
More choice for customers = better customer experience = more potential sales for Sellers = more profits for Amazon.
What constitutes a small oversize product?
Amazon defines small oversize products as those that fall within the following dimensions:
- Length, width, and height – 61 x 46 x 46 cm
- Unit weight – 1.76 kg
- Dimensional weight – 25.82 kg
So it covers a wide range of products, with lots of scope for Sellers to rethink their product strategy and explore expanding their listings while benefiting from reduced fees.
And how much exactly will fees be reduced by?
Here’s a full breakdown:
- 12-30% fee reductions for all four small oversize size bands (for items 61 x 46 x 46 cm, up to 1.76 kg) in Amazon’s UK, France, Italy and Spain stores.
- 22-28% fee reductions for two small oversize size bands (for items 61 x 46 x 46 cm, up to 1.26 kg) in Amazon’s Germany store.
It’s worth noting that all other domestic FBA fulfilment fees across these countries will remain unchanged.
To view the updated fees? Just log in to your Seller Central account and visit the 2024 Fulfilment by Amazon fulfilment fee changes page.
This has all the details you need to assess how the new rates will affect your business.
What’s the opportunity here for Sellers?
We think there’s great potential here to review your product offerings and identify where you can take advantage of the reduced fees.
If you don’t already sell small oversized products…
By broadening your product range, you could tap into new customer segments, increase your sales and reduce your overall fulfilment costs – all while staying competitive.
If you’re already selling small oversize products…
Happy days! You’ll get an immediate boost to your margins – savings you can reinvest into growing your business, improving your listings or even expanding your advertising efforts to drive more visibility.
Of course, the moves you make should always come down to what’s right for your individual needs and, if you’d like some strategic, commercially driven, profit-focused advice from our team, their expertise is here for you!
Get in touch today and we’ll guide you through the details, helping you make informed decisions designed to boost your margins.