Our Study on Amazon’s Increase in FBA Fees

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There has been a notable update from Amazon in regards to their referral and Amazon FBA fees for some product categories as of February 18, 2020. This may not come as a surprise considering fee increases on Amazon are nothing new. They tend to increase their fees on a yearly basis.

In our study of the most recent increase, we analyzed items sold in 2019, our previous fee percentage, and current fee charges. Overall, we are seeing an estimated 3% increase in FBA fees. FBA fee increases vary by product categories, some are listed below:

  • Shoes, handbags & sunglasses: Referral fee percentage has decreased from 18% to 15% for products in the Shoes, Handbags & Sunglasses category with a total sales price above $75.
  • Outdoor furniture: Outdoor furniture products have been consolidated into the Furniture category, which will reduce the referral fee percentage from 15% to 10% on any portion of the total sales price above $200.
  • Personal care appliances: Personal care appliances have been consolidated into the Health & Personal Care category, which will lower the referral fee percentage for personal care appliances from 15% to 8% for items with a total sales price of $10 or less. Items with a total sales price above $10 for that category will remain at 15%.
  • Activewear: All activewear clothing will be charged with the Clothing & Accessories category referral fee percentage of 17%.
  • Amazon Business: Amazon has discontinued the tiered fee structure for Amazon Business and has applied one referral fee rate per category regardless of price. Products above $1,000 will be charged the same referral fee rate that currently applies to products $1,000 or less in each category.
To check your Referral and FBA fees and how they will affect your margins, follow the process below:

  1. Log into your Seller Central Account.
  2. Go to Reports > Fulfillment.
    Amazon Fulfillment Reports
     
  3. Under the "Payments” portion of the menu on the left, select “Fee Preview” > “Download”.
    Amazon Inventory Fee Report

    Amazon Fee Preview Report

    The report will appear in the queue as “In Progress”.
  4. Click “Download” under the “Report Status” column after the report has loaded.
    Amazon Fee Report
     
  5. Note the key columns in the report you just downloaded and opened:
    • Item Details: SKU, FNSKU, ASIN, product-name, brand
    Amazon FBA Fee Report

    • Item Category: product-group
    Amazon Fee Report

    • Item Dimensions: longest-side, median-side, shortest-side, length-and-girth, unit-of-dimension, item-package-weight, unit-of-weight (these dimensions determine your product size tier and FBA fee).
    Amazon FBA Fee Report

    • Amazon Size-Tier: product-size-tier
    Amazon Fee Report

    • Referral Fee: estimated-referral-fee-per-unit
    Amazon FBA Fee Report

    • FBA Fee: expected-fulfillment-fee-per-unit
    Amazon FBA Fee Report
     
  6. Your estimated FBA fee will be listed in column Y (expected-fulfillment-fee-per-unit) while the Referral fee for each product is listed in column T (estimated-referral-fee-per-unit). To check total fees, check Column T (estimated-fee-total).
    Amazon FBA Fee Report
     
  7. Review any increases and how they affect your margins.


For more information about Amazon’s FBA fees, please refer to Amazon’s official FBA Fees page.

 

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About The Author

Canaan Wright is an Inventory Strategist at Retail Bloom with years of experience in logistics. She loves spending time with her dog, Indy. Canaan's favorite part of her job is establishing great inventory positions and seeing sales grow as a result. Be sure to follow her on LinkedIn.

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