As Amazon FBA becomes more competitive, FBA sellers should seize every opportunity to boost their profits. One key strategy is to understand the Amazon FBA fees 2024 and how these changes will impact their bottom line.

Amazon Fees 2024

As Amazon continues to refine its logistics and fulfillment services, fee adjustments are inevitable. In 2024, sellers will see significant changes across various fee categories, from fulfillment to storage, and new fees like the low inventory fee. 

Fulfillment Fees

Amazon charges fulfillment fees for picking, packing, and shipping your products .

Starting April 15, 2024, these fees will see an overall reduction, which is great news for sellers. 

For standard-size products, the fee will decrease by $0.20 per unit, and for large bulky-size products, it will drop by $0.61 per unit.

• Standard-Size Products: These will now be measured in intervals of 2 ounces for small standard-size and 4 ounces for large standard-size tiers.
• Large Bulky-Size Products: The previous oversize tiers are being replaced with new large bulky and extra-large size tiers.

Storage Fees

Storage fees are charged for holding your products in Amazon’s fulfillment centers. Effective April 1, 2024, the off-peak monthly storage fees (January-September) for standard-size products will be reduced by $0.09 per cubic foot.

• Monthly Storage Fees: Reduction during off-peak months.
• Long-Term Storage Fees: Fees for items stored between 181 and 270 days remain unchanged, but fees for items stored between 271 and 365 days will increase.

Inbound Placement Service Fees

Previously, the inventory placement service allowed sellers to send inventory to one location, and Amazon would distribute it. 

Now, the new inbound placement service fee will increase by an average of $0.27 per unit for standard-size and $1.58 per unit for large bulky-sized products. This change emphasizes the importance of optimizing your shipment strategy.

Low Inventory Fees

Starting April 1, 2024, a new low inventory fee will apply if your product’s inventory level falls below a 28-day supply based on historical demand. This fee is intended to ensure sufficient stock levels to meet customer demand and maintain delivery speed.

Storage Utilization Surcharges

These surcharges apply when your inventory volume surpasses recent demand and sell-through rates. Effective April 1, 2024, if your storage utilization ratio exceeds 22 weeks, a surcharge will be applied.

Removal, Disposal, and Liquidation Fees

Effective February 5, 2024, fees for removing or disposing of inventory will increase, although liquidation fees remain unchanged. This adjustment encourages sellers to manage inventory more efficiently to avoid unnecessary costs.

Returns Processing Fees

Beginning June 1, 2024, Amazon will introduce a returns processing fee for high-return-rate products, excluding apparel and shoes. This fee is aimed at managing return costs and reducing waste.

Strategies to Minimize Amazon FBA Fees

Managing Amazon FBA fees effectively requires a strategic approach. Here are some practical tips to help you minimize costs:

• Optimize Inventory Levels: Ensure your inventory is neither too low nor too high to avoid low inventory and long-term storage fees. You can easily achieve this by using Forceget’s digital platform, which offers real-time inventory management with alerts and shipping management through Seller Central integration.
• Efficient Inbound Placement: Ship to multiple fulfillment centers if possible to reduce inbound placement service fees.
• Reduce Return Rates: Address common reasons for returns and improve product quality to avoid returns processing fees.
• Leverage Discounts and Programs: Utilize Amazon’s new services and discounts, such as the reduced referral fees for apparel products and the new selection program for FBA.
• Reimbursement Opportunities: Be sure to regularly check your Amazon seller account to identify any FBA reimbursement claims.

For more detailed information about the Amazon FBA fee changes in 2024 and how to manage them as an FBA seller, be sure to download our 2024 guide!

Amazon FBA Fees 2024 Guide