Amazon has unveiled changes to its Fulfilment by Amazon (FBA) fee structure, which will take effect on February 1, 2025. These updates include adjustments to fee tiers, reductions for specific product categories, and a simplified pricing structure. The changes will affect sellers operating in Amazon’s marketplaces in the United Kingdom, Germany, France, Italy, Spain, and other European stores like the Netherlands, Sweden, and Belgium.

Key Changes to FBA Fulfilment Fees

1. Lower Fees for Parcel and Oversize Tiers
   Amazon has announced an average reduction in FBA fulfilment fees for parcels and oversized products. This move aims to provide sellers with more cost-effective options for fulfilling larger, heavier items.
2. Simplified Oversize Rate Structure
   To streamline pricing, Amazon is reducing the number of weight-size bands for oversize products from 28 to 17 tiers. A base rate will now be combined with incremental flat rates per kilogram, making the fee structure easier for sellers to calculate and manage.
3. Adjustments for Envelopes and Low-Price FBA
   While oversized products see fee reductions, Amazon is adjusting fulfilment fees for envelopes and low-price items in the UK, Germany, France, Italy, and Spain stores. This aligns pricing more closely with Amazon’s operational costs.
4. Changes Across the  Netherlands, Sweden, and Belgium
   All FBA fulfilment fees in these stores will also be updated to reflect cost alignment.

Specific Examples of Fee Changes

• Small Parcel under 1.9kg (UK Local Fulfilment)some text
  • New Fee: £3.25
  • Old Fee: £3.51
  • Reduction: 7.4%
• Small Parcel under 400g (UK Local Fulfilment)some text
  • New Fee: £3.00
  • Old Fee: £2.95
  • Increase: 1.7%

These examples highlight how the impact of the changes will vary depending on the size and weight of the products a seller lists.

What This Means for Sellers

While many sellers of larger items may benefit from the fee reductions, those dealing in smaller, lighter parcels could see higher costs in certain tiers. The impact will ultimately depend on the weight and dimensions of each seller’s product range.

Sellers are encouraged to review Amazon's detailed breakdown on Seller Central to understand how these changes affect their operations and pricing strategies.

Final Thoughts

Amazon’s upcoming FBA fee changes reflect a shift towards simplifying pricing while aligning costs with operational realities. Sellers should take this opportunity to analyse their product categories and consider how these changes might impact their bottom line. Whether leveraging the lower fees for larger parcels or adjusting for higher envelope costs, planning ahead will be key to maintaining profitability.