Amazon Announces Upcoming Changes to FBA and Referral Fees

Amazon announced an upcoming change to their referral and FBA fees for U.S. sellers that will impact their bottom line.

Attention Amazon sellers, upcoming Amazon fee changes may impact your profitability. Last week, Amazon announced tweaks to the common referral and FBA fees that will go into effect on June 1, 2021.

Before you panic, most referral fees will not change and the changes are modest in most instances.

For the uninitiated, the Amazon referral fee is a fee charged by Amazon every time a product is sold. Consider it the cost of doing business on Amazon, or the cost of being visible to the millions of people Amazon brings to its platform.

Typically between 8% and 15% of the price the customer pays, the referral fee plays a significant part of profitability and needs to be accounted for by every seller.

[How Much Are Amazon Seller Fees?]

In addition to the updated referral fee, Amazon will be updating FBA fees as well. As defined by Amazon, the Fulfillment by Amazon (FBA) fee is a per-unit fee, based on the dimensions and weight of the item.

Additionally, not all changes negatively impact profitability. Amazon stated, “We will also reduce certain fees, like the returns processing fee, which reflects feedback we have received from sellers and our continued efforts to reduce costs.”

In case you’re affected by the change, you can utilize an FBA Cost Calculator to discover how it impacts profitability.

Lastly, click here to view the official, complete announcement from Amazon. Check out the links below to dig through the changes and find specifics on how you’re impacted.

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Author: Cameron Stewart

Cameron joined the Viral Launch team and 2018 and has worn many hats at the company. Cameron, a graduate of Indiana University - Purdue University in Indianapolis with a degree in Journalism, started off as a Customer Experience Specialist before switching to the creative side as a Product Listing Specialist. Currently, he assists with Viral Launch's copywriting efforts, using his years of knowledge to help sellers achieve their goals. View all posts by Cameron Stewart

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