Amazon Seller News: How Tariffs Are Impacting Amazon FBA
As federal policy continues to impact the United States economy, the Amazon marketplace is adapting to the current financial reality. Additionally, increased fuel prices have caused shifts across the industry. In this blog we update sellers on the financial impact of recent economic shifts on Amazon, especially increased FBA prices.
AMZ FBA Fee Changes
At the start of the year, Amazon announced several increases to the fees that Amazon charges for its different shipping sizes for products. These ranged from $0.08 for smaller packages to $0.32 for larger sized orders. Additionally, there were several key fees that sellers should be aware of:
- Low inventory fee: Amazon requires sellers to maintain an inventory level enough to sustain customer demand for the next 28 days, otherwise they charge a fee to sellers
- Overmax handling fee: extremely large products will be charged an additional fee based on set rate by Amazon
Rising Energy Prices, Rising FBA Fees
Amazon recently announced that they will be adding an additional 3.5% charge to all FBA fulfillment rates that were announced at the beginning of the year. Depending on the size and weight of your products, this could mean anywhere from a $0.09 to $0.25 increase in fulfillment charges for sellers.
This may impact the margins on seller products and requires active monitoring as the prices of oil and gas continue to increase worldwide. Amazon is not alone in raising fulfillment costs, as other shipping entities like the United States Postal Service have increased rates in response to rising global energy prices. What this means is that we can continue to expect to see the impact of market movements in the seller space over the following months.
Contact Amazon Sellers Lawyer Today!
If you are having trouble with lost or frozen FBA inventory, give the team at Amazon Sellers Lawyer a call today. We have been focused exclusively on helping sellers since 2016 and have helped to pioneer how sellers handle issues like these. You can call us at 212-256-1109 or fill out our online form here.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on helping Amazon sellers deal with issues like suspensions, intellectual property disputes, and withheld funds.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.