[AMZ] Update to US referral and Fulfillment by Amazon fees

Well, this is certainly frightening. The fee increases aren’t unexpected but 27 cents per unit transfer cost? Oddly enough, that’s right in line with what Walmart just rolled out a couple weeks ago.

It looks like there are ways to navigate this and potentially even save some $ if all the stars align but once again overly complicated to fully grasp initially and impossible to grasp until we all get there and experience it.

Surprised this hasn’t been posted yet here.

Amazon Services225x38
As we near the end of 2023, we would like to thank you for your continued partnership in serving customers and together achieving new milestones of success. This year, our partnership delivered the largest selection of products to US Prime members at the fastest speeds ever. As of the end of July, more than 1.8 billion product units were delivered on the same or next day—nearly four times what we delivered at those speeds in 2019—with the majority of these units sold by independent sellers like you. We have continued to focus on providing you with powerful selling capabilities, including investment of billions of dollars in technology, transportation, and infrastructure to reinvent our fulfillment network. By regionalizing our US fulfillment center operations and growing our same-day delivery network, we are able to place more products closer to customers, in order to deliver products faster and at a lower cost. These investments result in higher customer satisfaction and more sales for you.
As we look to 2024, we will implement a set of fee changes that continue to provide you with a great value and allow us to partner together to offer customers amazing service while reducing our collective costs to do so. After these changes, we expect that sellers will see an average increase of $0.15 in fees per unit sold (which is significantly less than the increases announced by other logistics providers); however, we also expect that there will be many sellers who will see a decrease in the average fees paid to Amazon per unit sold. Amazon’s fulfillment fees will continue to remain an average of 70% less expensive than two-day shipping methods offered by other major third-party logistics providers.
In particular, we will focus on how we partner together to inbound and place inventory across our network. Placing inventory close to customers improves the speed of those orders, driving more sales at lower transportation cost. To enable more efficient use of our network, we will begin charging separately for inbound and outbound activities. As a result, we will lower our outbound fees while creating new inbound fees that you can reduce or avoid entirely based on how you inbound products to us:

  • We will introduce an inbound placement service fee for standard and Large Bulky-sized products to reflect our cost of distributing inventory to fulfillment centers close to customers. These fees will average $0.27 per unit for standard-sized products and $1.58 per unit for Large Bulky-sized products. We will give you the option to pay reduced fees or even no fee based upon whether you send your shipment to a single location or multiple locations. These fees will be effective starting March 1, 2024, and the fees will be charged 45 days after products are received. Go to the Inbound placement service fee page for more details.
  • On average, we will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit. These fees will apply starting April 15, 2024, the same date that the first inbound placement fees will begin to be charged. Products priced below $10 will continue to have an additional $0.77 discount on per-unit fees. Go to the FBA fulfillment fee rates page for more details.
  • In addition, to reflect the cost savings when products can be shipped in their existing packaging, we will offer a fulfillment fee discount ranging from $0.04 to $1.32, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program. These discounts will apply starting February 5, 2024. Go to the Ships in Product Packaging (SIPP) program page for more details.
    In addition to inbounding and placement, maintaining sufficient inventory levels also enables us to place inventory closer to customers across our network, reducing costs to fulfill orders. In cases where you have low inventory levels, this drives transportation costs higher, and we will introduce fees to align with these underlying costs. Where your actions reduce our costs of fulfillment by maintaining healthy inventory levels, you will see lower fees for these items. Accordingly, we will make the following changes:
  • We will introduce a low-inventory-level fee for standard-sized products. The fee applies if you carry consistently low levels of inventory relative to unit sales, as this inhibits our ability to distribute products across our network, degrading delivery speeds and increasing our shipping costs. Sellers can avoid this fee by maintaining more than four weeks of inventory relative to sales. These fees will apply starting April 1, 2024. Go to the Low-inventory-level fee page for more details.
  • To help enable you to carry sufficient levels of inventory, we will reduce the non-peak monthly storage fees for standard-size products by an average of $0.09 per cubic foot, from an average of $0.87 per cubic foot to $0.78 per cubic foot, from January through September. Monthly storage fees for non-standard-sizes will remain unchanged. This change will apply starting April 1, 2024. Go to the monthly storage fees page for more details.
    We will also provide the following new or expanded services and benefits:
  • We will reduce referral fees for apparel products priced below $20. For items priced under $15, we will decrease referral fees from 17% to 5%. For products priced between $15 and $20, we will decrease referral fees from 17% to 10%. Other referral fees will remain unchanged. These reduced fees will apply starting January 15, 2024.
  • We introduced a new, lower pricing structure for Amazon Vine. This program is designed to help brands get insightful reviews and help customers make informed buying decisions. The new fee tiers apply to products enrolled in the program on or after October 19, 2023. Go to the Amazon Vine page for more details.
  • We will expand benefits as part of the US FBA New Selection program. We will provide an average 10% rebate on sales of eligible new-to-FBA parent products, newly including these benefits for non-branded selection. In addition, we will provide expanded program eligibility for oversize selection and newly offer Vine benefits for eligible sellers and associated selection. Changes will take place starting March 1, 2024. Go to the FBA New Selection page for more details.
  • We will introduce updated rates and new benefits for Supply Chain by Amazon, an automated set of supply chain services that provides an end-to-end solution to quickly and reliably move your products from manufacturers to customers around the world. We are updating the fees for Amazon Global Logistics, Partnered Carrier Program, and Amazon Warehousing & Distribution. We will also provide new discounts for products that are auto-replenished by Amazon. Go to the Supply Chain by Amazon page for more details.
    We are also making annual updates to Storage Utilization Surcharge, Removal, Disposal, Aged Inventory, Prep, and Inbound Defect fees. For outbound fees, we will also make our rate card more granular for standard-sized products and revise the structure and eligibility criteria for non-standard-size products by introducing Large Bulky and Extra-Large size tiers.
    Finally, we will expand the returns processing fee to apply to high return-rate products in all categories, excluding apparel and shoes. This fee will address the operational costs of returns and reduce waste. The returns processing fee will only apply to products that have the highest return rates relative to other products in their category and will apply starting June 1, 2024. Existing returns processing fees for apparel and shoes will remain unchanged on average. Go to the Returns processing fee page for more details.
    For a detailed summary of all fee changes, go to amazon.com/selling-fee-changes. For fee updates by type, go to 2024 US Fulfillment by Amazon fee changes and 2024 storage fee changes.
    We appreciate your taking the time to understand these new fees, how they continue to provide you with a great value, and how they help us continue to partner together to offer customers amazing service while reducing our collective costs to do so.
    We wish you a healthy and prosperous holiday season, and we thank you for your continued partnership.
    Amazon Selling Partner Services team

I just came to share this! The inbound placement fee will become the standard instead of the extra service, as I understand.

But, so far, I find the low-inventory-level fee even more scary:


Am I reading this right? Sellers will be fined for keeping too little inventory now?

Still trying to digest all of this without actually vomiting.

And holy S - that’s a PER UNIT fee. Wow


Same here! I couldn’t believe it either!

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We don’t FBA, but wow. (One more reason we’re not trying FBA.) I can only think that fees will be a-flying when your inventory limits are bouncing all over the place. Like, today we raise your limit…now you don’t have enough - charge a fee! Oops, we’ve now lowered your limit…too bad you now have too much - charge a fee!!! I’d imagine all the lost & found items will play into the fees too. Jeepers.

Again, we don’t FBA, but it just seems like that’s how these things tend to go.


There are too many variables that are totally out of the seller’s control.

Amazon doesn’t always offer the splits which means they can dictate that 27 cents per unit fee whenever they want. Short on their quarterly goals - no problem, no splits for anyone for a couple weeks…

Seller decides to ship 2 pallets of 12K units in because that’s the needful for the item. Amazon decides they aren’t interested in offering the split and BAM - $3300 charge on top of the inbound cost, on top of the FBA fees.

All of this not being standard makes the above scenario, which I am sure will happen, borderline criminal!

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Bottom line, even at the max costs, it’s still cheaper for us to use FBA, but it’s starting to get closer…

Reality is it’s FBA or nothing for what we sell anyway so you either stick with Amazon or exit.

Walmart is doing the exact same thing on the transfer charges. Almost feels like Amazon picked up on what they rolled out a couple weeks ago and ran with it.

BTW and ETA - Walmart didn’t even have the decency to notify their sellers of the change. Just popped up when creating a new inbound shipment.

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Most of our items would be large & bulky…and those fees are even worse!

The details are in the translations …


Yea, I don’t know how anyone makes any $ with large / bulky items at FBA.

Time to start passing these increases on to the customer. Is what it is.

We’ve maintained our prices since 2019 as we have had no internal cost increases. Didn’t take advantage of “inflation” that doesn’t actually exist everywhere. There are a lot of opportunistic businesses out there that raised their prices for the sake of following along with everyone else regardless of actual overhead / COGS.

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I wonder if this is why we have been seeing the Zero Dollar “FBA Customer Return Fee” others have also mentioned.

2024 returns processing fee changes [link]

Not for what I sell, but because of our lifestyle (constantly on call to take care of my parents who are overseas), I’m on the FBA boat. That’s also why I wouldn’t be able to optimize my inventory this much. I wouldn’t overstock but when I’m away for months, I can’t replenish my low-inventory items if they somehow start selling faster than usual.


Our only increases have been do to shipping increases and the related increase in Amazon fees to the increase in shipping costs.

Hopefully the wife’s procedure tomorrow will finish up her issues and we can begin to refocus on the upgrades needed on our site.

The last 24 to 18 months … Amazon “improvements” have created a steady downward trend in sales on their platform.

Trying to please a bot is like trying to please a person who can’t make up their mind … it’s not going to happen.

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Ya I call BS… They don’t transfer this stuff “closer to customers”.


It would not ALL still be there weeks later if they did.

I am surprised they didn’t do this years ago.

Make those shipments LTL size and this will work. Keep breaking up LTL shipments into SPD and it will fail.

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This is why when my other half asks what I want for dinner, my reply is “I want what makes you happy”.

Assume you are saying LTL with pallet splits? Yea, totally agree. If we are offered splits every time, we will actually save money under this new plan it would appear on the surface.

Sounds like the rebates are going away and being replaced with a reduced FBA fee and no 27 cents a unit charge if you follow Amazon’s direction. The issue is I highly doubt the split will always be offered. That’s messed up.

Amazon offering a way to save in their statement but not always offering that way and that decision is with an algorithm. So I see a scenario where a seller just keeps creating shipment plans and cancelling them until they get the split.

Am I wrong with any of this? It’s OK, I’ve been wrong lots of times.

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Discussion on NSFE:

At first glance, most arguments are about the low-inventory-level fee.


Silly IMO but we can easily manage this. Maybe some / most cannot. We always hold inventory outside of FBA and can react within 24 hours.

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Ya, the store and pray swap meet crowd is taking another hit.