1. US FBA Fees have been hiked again – what steps can you take to prepare for the same in the UK?
US Sellers have received an unwelcome festive present from Amazon in the form of FBA price increases.
Set to take effect in January 2023, the marketplace says they are designed to encourage better “inventory health”.
According to Amazon, some US Sellers have been using more of their warehouse space than they think is necessary, which has a knock-on effect on the amount of storage they can offer elsewhere.
Will Amazon raise FBA costs here in the UK?
The truth is, we don’t know yet – but it pays to be prepared.
So let’s take a quick look at what’s increasing, and how you can get your own business ready – just in case…
US FBA fees going up in January 2023 include:
Regular FBA Fulfilment Fees
The biggest change is that Amazon have combined on and off-peak fulfilment fees into one overall fee – which could be a big price hike if you make regular use of off-peak times to keep costs down.
Fuel & Inflation surcharge
Has been permanently added to regular FBA Fees.
$0.22 average increase to FBA Outbound Fees
An increase which Amazon are emphasising is more competitive than their delivery and fulfilment rivals.
Increase in Storage Fees
Between an $0.03-0.20 increase for storage of some sizes of goods, with oversized and standard-sized off-peak storage (Jan-Sept) at the lower end and charges for storing larger, heavier items like furniture and large equipment in non-sortable fulfilment centres at peak times (Oct-Dec) increasing by $0.20.
Removal and Disposal Fees
A significant increase of almost double the charge here, which Amazon is blaming on the increased cost of disposing of waste.
But arguably, two of the most significant increases have been saved for April.
Again, announced for the US only at this stage, but we’ve got our eyes peeled…
The biggest is a new Storage Utilisation Surcharge from April 1st, which is tied directly to your cubic sell-through.
Amazon will charge based on your stored cubic feet vs the daily average in cubic feet shipped over the trailing, past 13 weeks.
All Sellers need to be conscious of this, as a slow sales period or accidental overstocking could have a big impact on your Amazon storage costs.
From April 15th, US Sellers will be subject to an Aged Inventory Surcharge, where all products (except apparel, bags, jewellery, shoes, and watches) stored in Amazon warehouses for between 180-270 days will be liable – and existing surcharge rates are going up for items stored between 271-365 days.
Phew!
So that’s all the new US FBA Fees covered – how can you prepare for similar price hikes in the UK?
We always say that, to run a sustainable, profitable Amazon business, you need to be both flexible and strategic.
It’s going to be more critical than ever to be on top of your inventory – both in terms of your forecasts and in what and how much you have stored in fulfilment centres.
Good pre-planning and accurate forecasting will help you stay flexible, no matter how much storage prices fluctuate.
With some of the US surcharges based on packaging sizes and storage capacity, it’s also more crucial than ever to ensure your packaging is correctly sized.
Need an expert eye to ensure you’re full prepared? Get in touch with our fulfillment specialists now.
2. No Black Friday Performance Data released for the UK?
Amazon have announced that worldwide, Black Friday 2022 was its biggest ever. But, while we usually see a specific press release on UK sales, this year Amazon have stayed silent.
Significant? Maybe – maybe not.
Given the cost of living crisis and the other unprecedented economic issues currently affecting the UK, it’s not surprising if this year was slow compared to previously.
Or it could be that post-pandemic buyers don’t yet need replacement big tech items usually bought on Black Friday – or even simply that UK sales figures were spread over the whole month, with many extending their Black Friday discounts through much of November (as covered in our last update).
What we do know is the top sellers as confirmed by Amazon:
Top Selling UK Categories included:
- Skin Care
- Make Up
- Games & Puzzles
- Pet Food
Top Selling Items included:
- Echo Dot
- Fire TC Stick 4K Max
- Ring Video Doorbell
- X Box Series S
How was Black Friday 2022 for you? Hit this link to let us know.
3. Amazon tops the list in the DeliveryX UK Top500
The first-ever DeliveryX UK Top500 2022 Report is out, which separates and ranks the best 500 retailers and brands based solely on their approach to Logistics and Operations.
Metrics are assessed from a range of dimensions, covering innovation and strategy, customer experience, the fundamentals of logistics and operations, merchandising, engagement and mobile and cross-channel performance.
Each retailer is then given an overall position within the DeliveryX Top500 – from Elite (the very best retailers across all Dimensions) to Leading to the top 50, 100, 250, 350 or 500.
Given their commitment to innovation and customer service – and their vast, self-owned logistics capabilities – it’s no surprise to see Amazon topping the Elite retailers, with Argos; Asda, Boots, Sainsbury’s and Tesco taking the other Top 5 spots.
The report itself is a must-read for any logistics personnel, and features an interesting Amazon Case Study that explores their success in pivoting away from drone deliveries to sustainable micromobility in London. You can download a copy here.
4. Huboo’s rapid UK expansion continues with new Bristol warehouse space
We’re delighted to announce another UK expansion for our partners at Huboo, the fast-growing and innovative 3PL Fulfilment Company.
As anyone who joined us for our last webinar on “Scaling your Brand into Europe” will have discovered, Huboo have all the delivery and fulfilment know-how you need, whether you’re looking for an addition/alternative to Amazon FBA or any other fulfilment company.
The new space increases their storage capacity by a whopping 63,900 sqft and – as with all Huboo facilities – will use their intuitive ‘hub model’ technology to enable online merchants of all sizes to access a full end-to-end fulfilment operation in a matter of minutes.
The introduction of Unit 3 is a core part of our strategic plans to scale globally and came in response to soaring market demand. It enables us to support the surrounding regional economy and double our flagship site’s overall warehousing footprint. It also allows us to significantly grow both our B2B and B2C customer bases, while retail businesses will continue to receive the same unparalleled level of service that they’ve come to expect from Huboo.
Peter Edgar, Huboo CFO
Interested to see if Huboo’s Fulfilment services could benefit your brand? Chat with our expert team now.
