Amazon announced new changes today to its Fulfilment by Amazon (FBA) fees that will come into effect on 4 August 2015 for retailers in the UK, France, Germany, Italy and Spain. In a positive note for retailers, Amazon is making these changes to simplify selling across its EU marketplaces and is reducing the FBA fees in France, Italy and Spain for most items.
In this post we cover the four changes to Amazon’s FBA fees that retailers need to know.
Standard Size and Weight Tiers: Previously, when retailers sold to multiple EU marketplaces they needed to identify the product sizes and weights for their products, which varied by marketplace, to determine the right pricing tier. Amazon has made the size- and weight-based tiers the same for determining fees for all items sold on Amazon, regardless of the EU marketplace in which an order is placed. This removes the need to identify different product-size tiers in different EU marketplaces.
Consolidation of Fees: Until now, Amazon had a Weight Handling fee for each shipment, along with a separate Pick & Pack fee for each unit. These charges are now being combined into one fee per unit (called a Fulfilment Fee) that is based on dimensions and weight only.
Change to the European Fulfilment Network (EFN) Fee: Currently, European Fulfilment Network fees on Amazon are surcharges that vary based on the marketplace in which an item was purchased, the item’s shipment origin and its product-size tier. Amazon is changing this model to include only one fee per currency for items fulfilled through EFN. The EFN fee will also no longer be a surcharge. The benefit of this update is that it allows retailers to view their EFN fee for each size tier regardless of marketplace. Most items shipped through EFN will see a further reduction in fees when compared with the current EFN model.
New Reduced Fee Promotion for France, Italy and Spain: Amazon also announced a new promotional fulfilment fee reduction that will apply to products sold on amazon.fr, amazon.it, and amazon.es until 4 August 2016.
Overall, these changes simplify the way that retailers calculate FBA fees and make selling to other European countries even more seamless on Amazon. You can learn more about these updates and get examples of the new pricing models here.