Amazon recently announced the Amazon FBA fee changes for 2024. Understanding Fulfillment by Amazon’s current fees and costs is key to informing pricing and inventory management decisions. In 2024, Amazon will implement fee changes focused on improving fulfillment service and speed to customers while reducing collective cost. Amazon FBA Fees will continue to remain on average 70% less expensive than comparable two-day ship methods. There will be an increase in granularity of fee structures this year to offer a more tailored cost structure to each Amazon Seller. Understanding these metrics is important for meeting your sales, cost, and profitability goals in 2024. In this article we will discuss year over year changes for common FBA fees and costs like FBA Fulfillment Fees, Storage Fees, Long Term Storage Fees and Removal Fees as well as some new program features for 2024.
How to Sign Up for Amazon FBA
This post covers the topic of how to sign up for Amazon FBA (fulfillment by Amazon) and get started in outsourcing your order fulfillment activities. Amazon sellers who are currently merchants fulfilling Amazon orders, or brands and manufacturers that have not sold on Amazon will find this post helpful. Amazon customers expect a reliable shipping experience, and utilizing a best in class tool like Amazon FBA can give your business a competitive advantage by offering free Prime shipping to Amazon customers and outsourcing a task that is likely not a part of your core business. Failing to properly fulfill orders, shipping damage, or lost packages can result in Amazon customers not continuing to repurchase from your brand.
Fulfill Orders Outside of Amazon with FBA Multi-Channel Fulfillment
An important function of Fulfillment by Amazon for Amazon Sellers is to understand how to fulfill orders outside of Amazon with FBA Multi-Channel Fulfillment (MCF). For brands and manufacturers, order fulfillment can be a challenge. Your core competency might be in manufacturing or marketing your product; but very few brands and manufacturers are experts in shipping and fulfillment. This is where Amazon FBA Multi-Channel Fulfillment can really help, as sellers can fulfill orders from outside of Amazon using their Amazon FBA inventory. Customers expect orders to have fast, reliable shipping. When order fulfillment is not up to par, it can lead to poor customer satisfaction. On the flip side, if the order is delivered quickly, you can win a lifelong customer. Multi-channel fulfillment through FBA can take the workload out of shipping each individual order and turn the order fulfillment process digital and outsource the work to the experts at Amazon for order fulfillment.
Salvage Inventory Value With the Amazon Liquidation Program
There are times when you just want to liquidate your Amazon inventory that is located within Amazon’s fulfillment centers. Your inventory may not be selling as you anticipated and you want to salvage some inventory value; or your products are approaching long-term storage fees. Luckily, there is a program called FBA Liquidations.
How to Calculate Amazon FBA Fees - Understanding Amazon's Shipping and Fulfillment Fees
When using fulfillment by Amazon it is important to have an idea of what is going behind the scenes so you know how much it will cost. For the purpose of this post, we are going to break the fees down in terms of shipping the product into Amazon's Warehouse. What is charged while the item is at Amazon's warehouse and what the costs are for Amazon to ship your product to the end customer.