Are you ready to solve the new puzzle of 2024 Amazon FBA fees?
December 13, 2023 Posted by LAURA WILSON

Amazon has recently announced a variety of modifications to its fee structure. This includes the roll-out of new fees, an increase in some of the existing fees, and, on a brighter note, a minor decrease in others. We've compiled all these changes for your ease of understanding.

In the past, you were charged by Amazon for maintaining a certain level of inventory. Moving forward, you will also be subjected to fees if your inventory levels drop below a predetermined threshold.

Amazon sellers, who are not accountable for returns, currently only pay a return commission equivalent to 20% of the referral fee. However, starting June 1, 2023, sellers who exceed a certain threshold for returns will begin incurring charges for each return.

Let's examine the new fee structure in detail:

  1. New Fees Introduced
    1. Inbound Placement Service Fee
    2. Low-Level Inventory Fee
    3. Inbound Defect Fee
    4. Returns Processing Fees (excluding apparel and shoes)
    5. Return Processing Fees (for apparel and shoes)
  2. Increased and Granulated Fees
    1. FBA Fulfillment Fees (excluding apparel)
    2. Storage Utilization Surcharge
    3. Removal and Disposal Fees
    4. Aged Inventory Surcharge
    5. Prep Service Fee
  3. Decreased Fees
    1. FBA Fulfillment Fees (excluding apparel)
    2. Ships in Product Packaging
    3. Non-Peak Monthly Storage Fees
    4. Referral Fee for Apparel
  4. New Size Bands

New Fees Introduced

Inbound Placement Service Fee

This will be effective starting March 1, 2024. If you opt in to send your inventory to a single Amazon warehouse, you will be charged this fee per item. You will have the option to pay less or none at all if you send your items to the offered warehouses or multiple locations. The price will be $0.21 to $0.68 for standard and $2.16 to $6.00 for newly introduced large bulky size tiers.

Low-Level Inventory Fee

Will be applied after April 1, 2024. If you have consistently low levels of inventory relative to unit sales, then you will be charged $0.32 to $1.11 per item for those items. Your historical days of supply should be above 28 days either for 90 days (long-term historical days of supply) or for 30 days (short-term historical days of supply) to avoid this fee.

Inbound Defect Fee

This will be effective after March 1, 2024. If

  • Your shipment was sent to a different fulfillment center than the one listed in your shipping plan,
  • Your domestic shipment didn’t arrive within 45 days of shipment creation,
  • Your international shipments didn’t arrive within 75 days of shipment creation, or
  • Your additional shipments didn’t arrive within 30 days of the first shipment in a multiple-destination shipping plan,

You will be charged an inbound defect fee. The fees will be $0.02-$0.04 for small standard and $0.02-$0.07 for large standard.

Returns Processing Fees (excluding apparel and shoes)

Will be effective after June 1, 2024. It will be applied to products that have a return rate above a specific threshold. If the threshold is exceeded, returned items after this value will incur this fee. The fee will be $1.78 - $5.00+ for standard and $6.74+ - $157.35+ for large bulky.

Return Processing Fees (for apparel and shoes)

Will be in action on February 5, 2024. It will be charged for each returned unit. The fee will be $1.65 - $3.89+ for standard and $6.74+ - $157.35+ for large bulky.

Increased and Granulated Fees

FBA Fulfillment Fees (excluding apparel)

Between February 5, 2024, and April 14, 2024, FBA Fulfillment fees will be granulated per 2 oz instead of 4 oz. Newly introduced bands will incur higher fees. But don’t worry, starting April 15, 2024, FBA Fulfillment fees will be decreased (don’t expect much, $0.15-$0.17 for small standard and $0.17-$0.33 for large standard).

Storage Utilization Surcharge

Starting from April 1, 2024, sellers with a storage utilization ratio of 22 weeks instead of 26 will incur a surcharge. There is more! The fee tiers will also be more granular (5 periods instead of 2), resulting in an average 50% increase (for standard items) in this fee. A positive side - inventory aged between 0 and 30 days will be excluded from the surcharge.

Removal and Disposal Fees

Effective on February 5, 2024, removal and disposal fees per item will be increased. The new fees will be $1.04 - $2.89+ for standard (current fees: $0.97 - $13.05+) and $3.12 - $14.32+ for large bulky (current fees: $3.12-$13.05+).

Aged Inventory Surcharge

Starting from February 15, 2024, there will be an increase in fees for inventory aged between 271 and 365 days. Other surcharges will remain the same. The new fees will be $5.45, $5.70, and $5.90 per cubic foot, whereas the current ones are $3.80, $4.00, and $4.20 for 271-300 days, 301-330 days, and 331-365 days, respectively.

Prep Service Fee

Active on February 5, 2024, bubble wrap for standard size will increase from $0.80 to $1.04.

Decreased Fees

FBA Fulfillment Fees (excluding apparel)

Starting from April 15, FBA fulfillment fees will be decreased by $0.15 - $0.17 for small standard tier and $0.17 - $0.33 for large standard tier (see previous table).

Ships in Product Packaging

Starting on February 5, a discount of $0.04 - $0.07 for small standard, $0.04 - $0.23 for large standard and $1.32 for large bulky items will be applied per unit on FBA Fulfillment fees for inventory registered in Ships in Product Packaging program.

Non-Peak Monthly Storage Fees

Starting on April 1, standard size non-peak (Jan-Sep) monthly storage fee will decrease by $0.09. The new fee will be $0.78 per cubic foot. No change will be for peak-term or other size tiers.

Referral Fee for Apparel

Effective on January 15, if the price is under $15, the referral fee will be 5% for the apparel category. If the price is between $15 - $20, the referral fee will be 10%. The previous rate was 17% for both.

New Size Bands

Starting from February 5, new size tiers are introduced. For small standard, the new intervals will be 2 oz instead of 4 oz. For large standard, there will be 4-oz intervals over 1 lb. Large-bulky and extra-large sizes are introduced instead of Oversize tier.

In conclusion, Amazon introduced new fees and increased/decreased some fees. So, it gets harder to keep track of each fee Amazon charges manually. But don't worry; the most accurate Amazon FBA calculator, Profit Cyclops, will save you from this trouble.

All of your fees will be displayed, and you will be able to keep track of your profits in total and per item. Sign up today to get started.

Laura Wilson
Content Creator