Update to Amazon Europe referral and FBA fees starting March 1
As we start the new year, we’d like to thank you for your continued partnership. We started 2022 expecting a return to normality as COVID-19 restrictions eased. However, fuel prices and inflationary pressure presented further challenges, some COVID-19-related challenges persisted and we’ve seen concerns about a recession arise in many places around the world. Despite these challenges, you persevered and demonstrated tremendous agility and, together, we have served customers well.
We continue to invest heavily in people, technology, transportation and infrastructure to innovate on behalf of our selling partners. We do this while also working to be more efficient and manage our costs to serve you and customers so that we can provide an amazing service that’s also great value. Today, we would like to share the updates that we’re making to our referral and Fulfilment by Amazon (FBA) fees that will take effect on March 1, 2023, except where otherwise noted.
Most referral fees will not change and we will make moderate increases to our FBA fees. To review the fee changes, go to 2023 Amazon Europe FBA and referral fee changes summary.
44 replies
Seller_77IcbQKVGdZo0
So some significant changes in here
Aged stock now starts at 271 days for some categories
New FBA Storage Utilisation Surcharge which starts at 50p per cubic foot to be added onto standard storage charges. Looks like this will apply if you are not shipping sufficient volume through FBA.
For those on small and light the smallest fulfilment charge is now 86p where it was 65p previously.
Probably others as well…
Seller_Yja9oH7DLHk2I
Will Amazon let us put our prices up to compensate or will they just remove the listings for pricing violations?
Seller_PtSZDCRO4f7e5
I was expecting a price decrease with all those bots they use
[no disrespect intended]
Seller_CVHqAm1a6eJM2
Has the 4.3% surcharge been removed or is that staying?
Seller_VJFloi7Cs0iaR
I think the main issue here is that some of the FBA fees are increasing 20-30% with a little over 5 weeks notice, I would have retired years ago if my products had the ability to lose that kind of margin and carry on, some sellers like myself will have months of stock already at FCs to serve demand.
In the past year or so, some of our S+L FBA fees have gone from £1.42 to £2.09 which considering how aggressive the market is on these products, is completely unsustainable.
What’s even worse is that Amazon sell a very similar product that competes with us, for under £2, which is less than the FBA fee they charge us to deliver it. Work that out.
Seller_j7UlCowZz6aOF
Clearly that investment does not include seller support. The worlds worst support system they are unable to provide any support on any subject for a number of years.
Seller_xiJDmtQr1x151
Can anyone explain this please
’ * Starting June 30, 2023, we will apply the referral fee percentage to the item list price provided by sellers using the VAT calculation service as currently applicable to all other transactions.’
Seller_x1xMSBwZsJrTE
So you acknowledge that fuel prices, inflationary pressure, and Covid have presented challenges to you, but somehow you seem to think that us sellers live in some kind of fantasy world where these things don’t affect us.
You also don’t seem to understand that concerns about recession are more likely to affect individuals of small businesses who can’t put bread on the table, rather than large multi-nationals who made an absolute killing during Covid and who’s main concern seems to be upsetting their shareholders.
Since you expect us to constantly absorb costs and push our prices down, shouldn’t you be leading by example?
Oh I can wait to see this one…
The last time Amazon had an amazing service was about a decade ago when SS was based in Dublin and common sense prevailed. Are we to expect a return to that?
Seller_jlAvhEOjF2eIj
For someone looking in to FBA and has run successful businesses before, am I missing something?
Maybe because I’ve just started looking over past few days, but is there a definitive list of fees?
Seller_fMsCVAHNu4txH
Just to highlight something else to consider.
The FBA fees aren’t really just going up by the published amounts due to how the referral fees are calculated.
Since everyone will need to put their prices up, or absorb the costs, the referral fees collected will also increase (although they’re now calculating them VAT exclusive, if you’re using the VAT calculation service).
e.g. (Very Simplified Example)
Previous Price £12.00 @ 10% Referral Fee
- Referral Fee = £1.20
- FBA Fee = £2.00
- VAT Due = £2.00
- Return = £6.80
New Price £13.00 @ 10% Referral Fee (NOT on the VAT Calc Service / Not VAT Registered)
- Referral Fee = £1.30
- FBA Fee @ £3.00
- VAT Due = £2.17
- Return = £6.53
New Price £13.00 @ 10% Referral Fee (ON the VAT Calc Service)
- Referral Fee = £1.09
- FBA Fee @ £3.00
- VAT Due = £2.17
- Return = £6.74
So everyone will probably need to put their prices up by more than just the Fee increases just to make the same return.
