Amazon has announced that it is raising some of its FBA fees, but not until after the holiday season, starting Feb 1. 2012. Its "Pick & Pack" per Unit fee will be going up to $1 for all Standard-Size Units ordered on Amazon.com, for example.
More details below, from Amazon:
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Greetings from Fulfillment by Amazon,
Since the launch of Fulfillment by Amazon in 2006, sellers have used it to deliver their products to Amazon's millions of customers with fast, free Super Saver Shipping and Amazon Prime free 2-day shipping. In the five years since we launched, we've made few adjustments to our fulfillment fees, despite rising costs to us and to other fulfillment and transportation providers.
We remain committed to providing low cost fulfillment services. At the same time, we must balance this with our commitment to provide the high level of service and the fast, free shipping our customers expect. For this reason, we are announcing the following changes to the FBA fee structure to better reflect our costs. To give you more time to understand and plan for these fee changes, we will not change them during the 2011 holiday selling season. FBA storage, order handling, optional services, and Multi-Channel Fulfillment fees will not be affected by these changes.
The following fees will be effective as of February 1, 2012:
- The Pick & Pack per Unit fee will be $1 for all
Standard-Size Units ordered on Amazon.com. Standard-Size
includes any packaged Unit that is 20 lb or less with its longest side
18 inches or less, its shortest side 8 inches or less, and its median
side 14 inches or less. A Unit exceeding any of these dimensions is
Oversize.
- The fee for Media Units under $25.00 will change from $0.60 to $1.00.
- The fee for Non-Media Units under $25.00 will change from $0.75 to $1.00.
- The fee for Standard-Size Units of $25.00 or more will remain unchanged. See Example 1.
- The Pick & Pack per Unit fee for Oversize Units ordered on Amazon.com will be $6.00. For Units that exceed the Standard-Size definition above, the Pick & Pack per Unit fee will change from $3.00 to $6.00. See Example 2.
- We will use the Outbound Shipping Weight rounded up to the
nearest pound to calculate the Weight Handling Fee and decrease the
per-pound fee from $0.40 to $0.37.
- The Weight Handling Fee will be based on Outbound Shipping Weight, which is the combined weight value assigned to the Unit plus the packaging weight (box and packing materials).
- The packaging weight will be 2 oz for Standard-Size Media, 4 oz for Standard-Size Non-Media, and 1 lb for Oversize products.
- To reflect the costs of industry-practices by carriers, including UPS and FedEx, the Outbound Shipping Weight will be rounded up to the nearest whole pound when calculating the Weight Handling Fee.
- We will reduce the per-pound Weight Handling Fee for orders placed on Amazon.com from $0.40 to $0.37. See Examples 1, 2, and 3.
- We will use either the weight of the Unit or the Dimensional
Weight of the Unit to determine the Outbound Shipping Weight.
- For small Units, we will use the weight of the Unit to determine the Outbound Shipping Weight.
- Following industry practices, for all Units ordered on Amazon.com with a volume greater than 5,184 cubic inches (based on length x width x height), we will use the Dimensional Weight if the Dimensional Weight is greater than the Unit weight.
- The Dimensional Weight is the volume of the Unit divided by 166. See Example 4.
| Current Prices | Prices Effective February 1, 2012 | |||||||||
| Standard-Size | Oversize | Standard-Size | Oversize | |||||||
| Media | Non-Media | Zero
Fee Fulfillment & $299.99 |
Media | Non-Media | Zero
Fee Fulfillment & $299.99 |
|||||
| Order Handling - per order | $0.00 | $1.00 | $0.00 | $0.00 | $0.00 | $1.00 | $0.00 | $0.00 | ||
| Pick & Pack - per unit | less than $25.00 | $0.60 | $0.75 | $3.00 | $1.00 | $1.00 | $6.00 | |||
| $25.00 or more | $1.00 | $1.00 | ||||||||
| Weight Handling - per pound | $0.40 | $0.40 | $0.40 | $0.37 | $0.37 | $0.37 | ||||
Example 1 - Standard-Size Media
| Media Unit | DVD | |
| Selling Price | $15.99 | |
| Outbound Shipping Weight | 0.475 lbA | |
| Dimensions | 7.4 x 5.3 x 0.6 inches (24 cubic inches) | |
| FBA Fulfillment Fee | Current FBA Fees | Fees as of February 1, 2012 |
| Order Handling | $0.00 | $0.00 |
| Pick & Pack | $0.60 | $1.00 |
| Weight Handling | $0.14 | $0.37B |
| A. Unit weight of 0.35 lb +
packaging weight of 0.125 lb (2 oz) B. The Outbound Shipping Weight of 0.475 lb rounded up to 1.0 lb x $0.37 |
||
Example 2 - Oversize
| Oversize Unit | Stereo Receiver | |
| Selling Price | $163.88 | |
| Outbound Shipping Weight | 21.8 lbA | |
| Dimensions | 21.8 x 16.6 x 9.6 inches (3,474 cubic inches) | |
| FBA Fulfillment Fee | Current FBA Fees | Fees as of February 1, 2012 |
| Order Handling | $0.00 | $0.00 |
| Pick & Pack | $3.00 | $6.00 |
| Weight Handling | $8.32 | $8.14B |
| A. Unit
weight of 20.8 lb + packaging weight of 1.0 lb B. The Outbound Shipping Weight of 21.8 lb rounded up to 22.0 lb x $0.37 |
||
Example 3 - Standard-Size Non-Media
| Non-Media Unit | Computer Mouse | |
| Selling Price | $35.06 | |
| Outbound Shipping Weight | 0.7 lbA | |
| Dimensions | 6.2 x 4.1 x 1.5 inches (38 cubic inches) | |
| FBA Fulfillment Fee | Current FBA Fees | Fees as of February 1, 2012 |
| Order Handling | $1.00 | $1.00 |
| Pick & Pack | $1.00 | $1.00 |
| Weight Handling | $0.18 | $0.37B |
| A. Unit
weight of 0.45 lb + packaging weight of 0.25 lb (4 oz) B. The Outbound Shipping Weight of 0.70 lb rounded up to 1 lb x $0.37 |
||
Example 4 - Oversize (Dimensional Weight)
| Oversize Unit | All-in-one Printer | |
| Selling Price | $165.00 | |
| Unit Weight | 26.45 lb | |
| Dimensions | 20.7 x 20.5 x 13 inches (5,517 cubic inches) | |
| Dimensional Weight | 33.23 lb | |
| Outbound Shipping Weight | 34.23 lbA | |
| FBA Fulfillment Fee | Current FBA Fees | Fees as of February 1, 2012 |
| Order Handling | $0.00 | $0.00 |
| Pick & Pack | $3.00 | $6.00 |
| Weight Handling | $10.58 | $12.95B |
| A. Dimensional weight of 33.23
lb + packaging weight of 1.0 lb B. The greater of Unit weight or Dimensional Weight is applied. In this case, the Dimensional Weight (5,517 divided by 166) of 33.23 lb is used. The packaging weight of 1.0 lb is added to the Dimensional Weight of 33.23 lb, then rounded up to 35 lb x $0.37. |
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Regards,
The Fulfillment by Amazon Team
A very good and informative article indeed. It helps me a lot to enhance my knowledge on pricing of Amazon pick and pack services.The main benefits of pick and pack services that outsourcing allows you a more cost effective and more efficient storage and distribution.
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