Update to EU and UK FBA fulfilment fees starts May 12


#1

Since the start of the pandemic, we have significantly invested in Amazon’s store and fulfilment operations to better support you and our customers. In Europe, we’ve more than doubled fulfilment capacity and opened more than 250 new fulfilment centres, sortation centres, regional air hubs and delivery stations.

These investments enabled tremendous growth for sellers, who have increased sales in our stores 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 May 12, we will implement a fuel and inflation surcharge of 4.3% on top of our current Fulfilment by Amazon (FBA) fulfilment fee per-unit rates in the UK, Germany, France, Italy and Spain. In the UK, this will result in an average fulfilment fee increase of £0.10 per unit.

We know that changes to fees affect your business, and our teams are working each and every day to ensure that FBA remains a great value for the premium fulfilment and delivery service that it provides. For that reason, we have recently announced fee reductions and promotions and additional incentives on FBA New Selection.

For more information, go to 2022 FBA fulfilment fee changes.

Thank you for your understanding, and we look forward to our continued partnership.


FBA fees up again?
#2

Sigh.

It’s becoming almost impossible to make a decent profit with FBA these days. Two fee rises in quick succession and all this while sales are nosediving.


#3

Soon FBA will be parity with Royal Mail apart from storage


#4

It would help if the FBA small and light upper price cap is increased from £9 to £10.

Recently, it was done for EU marketplaces but not for the UK.

Inflation and cost increases are effecting us sellers as well.


#5

Not a good decision already they have increased now again even the selling prices are same Now a days it getting difficult to get a profit.
FBA is going to failed if they did this again


#6

Time to increase prices again


#7

Amazon is already a very rich company and they dont really have to increase prices and the impression we get is they really need to do this when they dont. im sure the increase costs they have to incur is for their benefit as much for small sellers like us. We already pay £28 a month fees plus selling fees.


#8

I can see where Amazon are coming from.

Their costs to transport goods between fulfilment centres has gone up as the price of fuel rises. The cost to heat/light fulfilment centres has gone up as the price of gas/electricity rises (remember businesses are not priced capped like residential homes are)

The costs to deliver goods to the end customer will go up as a result of increased fuel prices.

This type of rise impacts low price items a lot more than higher priced items as it is only on the FBA fulfilment fee that the levy is on. It will mean some sellers will need to raise prices which could have an impact on UK inflation as it will cause the overall price of some items to rise.

I’m not defending this price rise but I can see why Amazon may feel the need to do it.


#9

I only hope what amazon do will be equal to what they charged. Not higher expense but worse service for seller.


#10

Exactly! Even the Amazon US marketplace has raised FBA small & light up to $10, yet UK is still stuck at £9.


#11

If it was levied per order that would be understandable but to put it on each unit seems over the top, especially for Small & Light. Buy 10 of my 100g products and you’re paying £10 per kg shipping. Amazon doesn’t like it when you’re cheaper elsewhere but what do they expect for sellers of small FMCG’s!


#12

I think Amazon totally fails to understand that all their hoops and rules and policies add enormous cost for the seller. This is on top of the increasing fees. This will eventually get passed on to the buyers.


#13

So £7.65? Cheaper than the UK.


#14

Cost of living is lower in the US, as are tax rates in general. I don’t know if that makes up for that difference or not, but it is a factor.


#15

To be fair $10 = £7.80. The US equivalent should be towards $12 for parity. As for Europe 10 Euros is only worth about £8.35. France and Italy have had the limit upped to 11 Euros but this is only a little bit more than £9


#16

True, but point being there has been a increase everywhere else, but the UK.


#17

Don’t forget a lot of sellers here have to charge VAT, so that £9 is really £7.50…lower than the US & even worse as we have higher cost of living here.


#18

I understand why this is happening. My worry is that selling through FBA/Amazon in general will soon not be viable, we will then see more and more sellers closing up shop which is what happened with Ebay. In order to have this platform continue to flourish Amazon needs to look out and help out sellers as much as they do buyers.


#19

I don’t really see this happening, this new surcharge will either be swallowed by sellers as for most it will be around 3-30 pence an item or the sellers will put up their items by the small rise in the surcharge.

Prices may increase slightly but not to the point where I think buyers will stop buying on Amazon, most will probably not even notice the price increase if the sellers pass it on.

I still think the biggest worry for sales over the next few months is the increased cost of living which will give customers significantly less surplus money.


#20

I get that but using Royal Mail, DPD, UPS or whatever usually gets the delivey there the next day.
The biggest online retalers do the order by 9pm and get delivery tomorrow propaganda.
Whao hasnt done that?
Even Amazon can have a product stored in Manchester and delivered to Kent tomorrow. Again what service.
We have now got to a point where FBA Sellers are now paying for additional shipping in their fulfilment fees for Amazon shipping ones twos and threes of a SKU hundreds of miles across the UK to 5 or 6 different warehouses so Amazon Customers can have same day delivery…
In the meantime we still have to compete with FBM sellers crashing prices because they are fiddling and undeclaring weights and sizes with Royal Mail, Hermes and other the couriers…
And yes in the Olden days (15 years ago) been there done it and got the T Shirt so I know the scams.
Thankfully, Just ticking along these days in semi retirement nicking a couple of quid and topping my pension up.
But I do feel for the guys thinking they can make a living on here…
Amazon, if its not careful could become the 2025 onwards Netfix