Amazon News & Updates

OMG!!! FBA FULFILLMENT PRICES ARE RAISING

Hey Forbes!! As you all know, Amazon initiated FBA in 2006. Since then, many sellers were benefited and their sales increased. Even during the Covid pandemic, Amazon FBA service was working efficiently and fulfilled the orders on time. But now, due to war and inflation in fuel prices, Amazon is raising the fees on FBA sellers for fulfillment.

Amazon published a press release regarding this on April 13, 2022. Here is a glimpse of it.

” Since the start of the pandemic, we have significantly invested in Amazon’s store and fulfillment operations to better support you and our customers. We’ve nearly doubled fulfillment capacity, added over 750,000 full- and part-time roles, and our average hourly wage in the US has climbed from $15 to $18. These investments enabled tremendous growth for sellers, who have increased sales in our store by more than 70% during this time.

Like many, we have experienced significant cost increases and we have absorbed them, wherever possible, to reduce the impact on our selling partners. When we did increase fees, we were focused on addressing permanent costs and ensuring that our fees were competitive with those charged by other service providers. In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel prices and inflation have presented further challenges.

It’s still unclear if these inflationary costs will go up or down, or for how long they will persist. Rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time—a mechanism broadly used across supply chain providers.

Beginning April 28, we will implement a fuel and inflation surcharge of 5% on top of our current Fulfillment by Amazon (FBA) fulfillment fee per-unit rates. We know that changing fees affects your business. Our teams are working each and every day to ensure that FBA remains a great value for the premium fulfillment and delivery service it provides. Since 2020, and inclusive of this change, Amazon has increased fulfillment rates less than other carriers and continues to cost significantly less than alternatives. “

I know it’s catastrophic news for small sellers. But I’m sure this will not be stable and we’ll overcome it.

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