May 10th, 2024
To attract third party sellers, Amazon FBA started out with low fulfillment fees. Amazon's FBA fees and program have changed considerably over the previous decade. The FBA fees for standard size products have increased 96%. The FBA fees for oversized products have increased 74%. The removal fees have increased 460%. Below is a summary of each yearly change with additional context to major program changes that occurred that year.
Amazon has increased the fulfillment fees by over 30% since 2020. A series of small fee jumps has added up to a meaningful increase. Amazon is passing off its growing costs to third-party sellers.
Amazon will charge sellers $5.06 to ship a 1lb item during the holiday season (October 15th-January 14th). The fee for fulfilling the same product in 2020 was $3.48; it has increased by 45%. Smaller items will be roughly 30% more expensive to fulfill, while large and heavy items will only be 20% more expensive.
Since most Amazon sellers use Fulfillment by Amazon (FBA), these fee increases affect all and ultimately mean consumers are paying more. Increased FBA fees, rising advertising spending, and expensive freight imports all contributed to higher prices.
Year
Big Changes
Price for 8oz small standard size
Price for 2 pound standard size
Price for Small Oversize 2 pound
Monthly Storage Fee (ft3)
Removal/ Disposal Fee
Long Term Storage Fee
2000
Amazon 3P Marketplace Launched
-
-
-
-
-
-
2006
Amazon FBA Launched
$2.42
$2.99
$5.76
$0.48
$0.50
2014
First FBA Fee increases
$2.48
$3.36
$5.76
$0.48
2015
FBA is used by 50% of Amazon Sellers
$2.54
$3.63
$6.03
$0.51
$0.50
Charged bi-annually for 12+ month inventory.
2016
Nothing of Note
$2.56
$4.01
$6.54
$0.54
$0.50
2017
Q4 Storage fees with 300% increase introduced. Media selling fees increased by 50-75%.
Pick/Pack + weight fee combined to one FBA fee, eliminating benefit of multi-unit sales.
$2.41
$4.18
$7.24
$0.64
$0.50
Charged for 6-12 month inventory.
2018
Dimensional weight increased by 20%.
$2.41
$4.71
$8.51
$0.64
$0.50
2019
Reduced referral fees for products under $10 in several categories.
Reduced per item min referral fee $1 to $.30.
$5.26
$8.64
$0.69
$0.50
Removed 6-12 month fee. Fee now charged monthly.
2020
Inventory disposal fee now matches FBA removal fee.
$2.50
$5.42
$8.64
$0.75
$0.40
2021
Delayed to June 2021 due to Covid.
$2.84
$5.68
$9.04
$0.75
$0.67
2022
Move from shipping weight to dimensional weight. Whichever is higher.
$3.07
$5.79
$9.32
$0.83
$1.51
Charged for 9+ month old inventory.
APRIL
5% Inflation and fuel Surcharge added.
$3.22
$6.08
$9.79
$0.83
$1.51
Q4
Peak Season FBA Outbound fees. 0.25 average increase.
$3.43
$6.60
$10.84
2023
Introduction of Storage Utilization. $0.87 for over 26+ weeks utilization.
Storage Overage Fee. $10/month per cubic foot.
$3.58
$6.10
$10.15
$0.87
$2.83
Charged for 6+ month old inventory.
2024
Low Inventory Fee. $.32 - $1.11 fee if inventory levels drop below 1 month.
Inbound Placement Fee introduced.
Introduced fee for high return products ($3-5 per item).
$3.43
$5.87
$9.99
$0.78
$2.80
Amazon has increased the fulfillment fees by over 30% since 2020. A series of small fee jumps has added up to a meaningful increase. Amazon is passing off its growing costs to third-party sellers.
Amazon will charge sellers $5.06 to ship a 1lb item during the holiday season (October 15th-January 14th). The fee for fulfilling the same product in 2020 was $3.48; it has increased by 45%. Smaller items will be roughly 30% more expensive to fulfill, while large and heavy items will only be 20% more expensive.
Since most Amazon sellers use Fulfillment by Amazon (FBA), these fee increases affect all and ultimately mean consumers are paying more. Increased FBA fees, rising advertising spending, and expensive freight imports all contributed to higher prices.
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