Amazon's changes to FBA fees, particularly storage limitations and fulfillment fees, are just around the corner. As a seller on the platform, you know how important these updates are and how they impact product pricing, ad spend budget, inventory planning, and more. That said, here are some critical updates to note for this year.
Starting January 18, 2022, Amazon will increase fulfillment fees:
Expect the increase in fulfillment fees for dangerous products to be higher than standard ones varying between $0.20 to $13.00 per pound.
Storage fees will also be significantly impacted. If you're storing your goods through FBA, then you should also consider these changes:
There are also updates on how Amazon will charge its referral fees. Here are some of the more popular categories and their corresponding referral fees:
Given the momentum from the holidays, sellers are ready for Amazon 2022. If you want to maximize your sales on Amazon this year, it's essential to stay on top of these changes through the year and monitor your inventory.
|In 2021, Amazon addressed warehouse issues by expanding its storage and fulfillment capacity. That's why Chief Financial Officer Brian Olsavsky relayed in his statement that "labor became our primary capacity constraint, not storage space or fulfillment capacity."|
Since then, Amazon has taken steps to fill new roles and has hired 150,000 seasonal workers to help with the influx of orders during the holiday season in addition to the 628,000 permanent workers they have employed since the pandemic started.
Although these moves were geared towards improving systems in order to thrive in 2022, with the increase in storage space and workers, Amazon would have to increase its fulfillment prices to compensate for the additional fees. As a result, merchants should expect to pay up to 12% in fees, especially on the FBA program.
Since Amazon's SAFE-T Claim launch last year, sellers are expressing mixed feedback. Many speculate that the program, more often than not, favors the customers while continuously denying requests on the sellers' part without explanation.
There are, however, some highlights as of late for sellers dealing with refunds for unsellable products. Through a new initiative, Amazon explained to their sellers the following:
"You can request reimbursement when a customer has refunded a customer [who] believes that you should not be responsible for the charge (for example, return is not received in original condition). Your request will be assessed, and any reimbursement decision will be made in accordance with our Customer Service by Amazon refund reimbursement policy."
Although the CSBA program has been around since last year, it doesn't cover SAFE-T claims. A report on Friday surfaced explaining that they are further extending this program for CSBA (Customer Service by Amazon). Now, it will be known as SAFE-T for CSBA.
Numbers show that two out of three consumers will return at least one gift they have received over the holidays, which means that we're in peak time for Christmas shopping refunds right now.
As an FBA seller, it's critical that you factor in these returns as part of your operation and prepare accordingly. Returns can get pretty costly on your part, which is why having a plan will help you manage them more proactively, saving you time, money, and effort.
When having your returns shipped out, you're dealing with things like transportation, processing, and more. Once you've notified the availability of in-person returns, you're likely to save on fees as well. There are thousands of drop-off locations available, including Whole Foods Market, Kohl's, Amazon Books, and many more to drop these items off, so ensure that your customers are aware of these options.
Determine whether your item is worth being shipped back or if the product return is a loss. Weigh out the options and if you find that based on the product's value, or condition that it costs more to return, consider asking the customer to donate or keep it.
Although returns will surely cost you money, you can find ways to minimize your losses. One way to do it is by automating processes to make the return more efficient. Logistics and handling are the most significant issues in terms of costs when dealing with returns so having a plan in place will put you in a better position in the long run.