Amazon has announced that starting April 28, 2022, a 5% Fuel & Inflation surcharge will be added to the existing FBA Fulfillment Fees on every FBA Sale.
This 5% increase is in response to the rising cost of fuel and the rising rates of inflation that Amazon has been experiencing, and part of that is going to be passed through to sellers moving forward. This is impactful for most sellers, as 5% is a considerable amount on the overall business.
Running a profit analysis
We recommend all brands and sellers to do a full profit analysis, applying the new surcharge to each product you are selling via FBA, to ensure that it’s still profitable for your business. Doing this and acting quickly should protect you from unwanted loss in profit.
Note: Amazon did state that the 5% surcharge is subject to change, so it is possible that it isn’t permanent, or could decrease/increase over time. However, the fees as of April 28 can be found by visiting the Amazon help page, and zeroing in on the type of product you are selling.
Consider your options
Once the profit analysis is complete, you may uncover that some products are now not worth sending to Amazon once all fees are applied. In most cases, if the numbers don’t add up, the best choice is likely to stop selling that product via FBA. As an alternative option, you can choose to Fulfill the product by Merchant (FBM).
If you don’t have the resources or bandwidth to store, pick, and ship orders, consider hiring an agency such as Retail Bloom, who specializes in wholesaling products, and can get them to the end user quickly through FBM offerings.
With the constant updates in online marketplaces, it’s important to stay up-to-date with the latest changes. If you are a client looking for additional information, contact your strategist or if you are interested in learning more about how Retail Bloom can assist your brand efforts in online marketplaces, schedule a consultation with our team.
For more updates on marketplaces, visit our full Marketplace Updates content gallery.
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