Recently, Amazon announced that starting May 9, 2022, there will be changes to Multi-Channel fulfillment fees will be coming soon. Let's break down what that means and who will be impacted.
What is Multi-Channel Fulfillment?
Sellers can use Amazon as a fulfillment method for additional rates when using the Multi-Channel Fulfillment Program. The program provides a way for sellers to drop ship via Amazon while following their policies. Drop-shipping 3rd party orders via Amazon usually is against TOS, but when using this program, you pay additional fees to Amazon compared to a regular order that gets placed by a customer on Amazon.com.
What are the new fees and changes?
Fees for the Multi-Channel fulfillment program are completely changing as of May 9. To see a full chart and breakdown for each order Size, Weight, Quantity, and Shipping Timeframe, we recommend reading through the 2022 US Multi-Channel Fulfillment fee changes Help page. There, you can view a table of the current and future fees, along with examples.
The fees are being increased to adjust for increased costs of transportation and shipping. According to Amazon, the changes are being made to stay competitive with other similar logistic providers.
Who will this impact?
This update only impacts sellers who are relying on the Multi-Channel fulfillment program to fulfill their own website’s orders (or orders for any non-Amazon 3rd party marketplaces). If this update impacts you, we recommend reviewing these changes as early as possible, and be sure to account for the new fees as you assess your product offering. The fee changes might seem small, but they do add up and may result in you not reaching your desired profit margins depending on the situation.
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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