In an email sent to Amazon sellers, the e-commerce giant has announced that it will be closing the Fulfillment by Amazon (FBA) Small and Light program in the United States, effective August 29. The Small and Light program, which allowed sellers to enroll low-price, small, and light products at lower FBA rates, will be replaced with new low-price FBA rates for all items priced below $10.
Over the years, the Small and Light program has provided sellers with the opportunity to offer a wide range of low-price selections to customers while benefiting from reduced FBA fees. However, Amazon has recognized the value customers place on faster shipping speeds and the need for continued improvements in delivery.
Starting August 29, 2023, US FBA will introduce lower FBA rates for all items priced below $10, making it easier for sellers to take advantage of lower fees on their low-priced products. These new rates will not only provide cost savings for sellers but will also maintain the fast FBA delivery speeds that customers have come to appreciate. Additionally, eligible items will be exempt from the 2023 holiday peak fulfillment fees, which will apply from October 15, 2023, through January 14, 2024.
With the introduction of the new low-price FBA rates, the Small and Light program will be discontinued in the US, effective August 29. Until that date, items enrolled in the program will continue to benefit from Small and Light rates. However, after July 17, sellers will no longer be able to enroll new products in the program.
The new FBA rates for low-price products will be, on average, $0.77 lower per item compared to the current FBA rates for these products. For sellers whose products were enrolled in Small and Light and are priced below $10, this change will result in an increase of approximately $0.30 per item compared to the Small and Light rates. However, these sellers will now enjoy the faster FBA fulfillment speeds. On the other hand, sellers whose products were not enrolled in Small and Light and are priced below $10 will benefit from a reduction of about $0.77 per item while still receiving the fast FBA fulfillment speeds they are accustomed to. For items priced above $10, the standard FBA rates and shipping speeds will automatically apply.
Amazon understands that changes to programs and fees can have an impact on sellers' businesses. To ensure a smooth transition, sellers are given approximately two months to prepare for the new lower FBA rates and the closure of the Small and Light program. It is advisable to review product offerings, check inventory status, and assess any changes in FBA rates to adapt to the upcoming modifications.
As an Amazon seller, it is essential to stay informed about updates and adjustments to programs and fees. While change can sometimes be challenging, it also presents an opportunity to reassess strategies, optimize operations, and continue providing exceptional products and service to customers. Embracing these changes and adapting accordingly will position sellers for continued success on the Amazon platform.