Amazon hike FBA fees – Again !

Changes to Amazon EU FBA fees have arrived Changes to Amazon EU FBA fees have come into force on the 26th of April 2018. The changes will apply to items stored in the five dedicated country specific marketplaces (UK, France, Italy, Spain, France and Germany) and also fulfilment centres in the Czech Republic and Poland. Here are  the major changes:
  • Change to Local Fulfilment Fees: We will adjust our fulfilment fees for products sold on Amazon marketplaces and shipped from a fulfilment centre in the same Amazon marketplace. Units fulfilled as part of the Pan-European programme will continue to be charged the local fulfilment fee from the marketplace in which the product was purchased.
  • Change to European Fulfilment Network (EFN) Fees: We will adjust our cross-border EFN fulfilment fees for products sold on Amazon marketplaces and shipped across European borders from a fulfilment centre in another Amazon marketplace in Europe.
  • Change to Monthly Storage Fees: Monthly storage fees will be increased for inventory stored in European fulfilment centres.
  • Elimination of Zero Fee Fulfilment: The Zero Fee Fulfilment discount for standard-size items that sell for £300/€350 or more will be discontinued. Fulfilment fees based on the product size tier will apply.From April 26, 2018, the inventory storage fee for items stored in United Kingdom fulfilment centres will be £0.65 per cubic foot between January and September and £0.91 per cubic foot between October and December to account of seasonality.
  • Amazon EU FBA changes coming later in the yearThere will be an expansion of Returns Processing Fee into Jewellery, Watches and Luggage Categories from September.
  • Why is FBA changing its fees? FBA remains committed to providing the high-quality service and fast, free shipping expected by Amazon customers. To maintain this level of service, we periodically assess FBA fees and may consider adjusting our rates to reflect the changing costs of storage, fulfilment, transportation and customer service. When we need to increase fees, we announce these changes in advance to help give you enough time to make business decisions.
 So what are my options?
  • Amazon FBA is a fantastic service for the right sellers with products suited to the fulfilment service but it is also relatively expensive. How ill you be affected by these changes and will you be using Amazon EU FBA more or less than you do currently?
  • And October will see the introduction of Manual Processing Fee: Amazon will require merchants to provide box content information for each box sent to Amazon. Sellers who don’t provide box content information will be subject to Manual Processing Fee for each unit.
  • More developments will be coming later in the year:
  • And looking to other European countries, from the same date the inventory storage fee for items stored in Germany, France, Italy, Spain, Poland and Czech Republic fulfilment centres will be €26 per cubic metre between January and September and €36 per cubic metre between October and December.
As a fulfilment and logistics Company we provide a range of value added support services including FBA Preparation. If preparing consignments to send into Amazon is too time consuming then outsourcing this activity may well be the answer. Alternately why not consider avoiding sending goods into Amazon altogether and instead tap into merchant fulfilment services. This way you will benefit from centralised inventory and have complete control of your stock whilst also saving money on double handling into Amazon. The good news is that you do have choices
  • 1: Continue to use FBA by complying to spec and paying the new prices
  • 2: Continue to use FBA but outsource your FBA preparation work to an FBA prep specialist such as 3P Logistics
  • 3: Forget sending goods into Amazon and instead focus on achieving “seller fulfilled prime” status at which stage you can switch on merchant fulfilment for all channels.
  • 4: Outsource the fulfilment of all merchant orders to an ecommerce fulfilment specialist and pass the challenge onto the experts
Let`s face it, Amazon will continue to change the rules as they go along whilst outsourcing to an ecommerce fulfilment specialist is a great way to negate the challenges this brings and still achieve the ultimate aim of maximising sales revenues.    

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