FBA Price Hike – Are You Affected?
Naturally the guys at 3P Logistics keep an eye on the marketplace and what’s changing. Today they’ve shared some news on Amazon FBA price changes which are likely to affect all sellers using Amazon as their fulfilment house.
Retailers using FBA (Fulfilment By Amazon) services will be impacted by changes to the fee structure for orders on Amazon.co.uk. These changes are due to come into effect from 29th August 2013, and will increase overall fulfilment fees for the majority of products.
The main changes
- Media Product – standard envelope size – 13.5 % increase.
- Non- Media Product – Standard Parcel Size – 9.2 % increase.
- Abolition of Order Handling Fee, to be offset by increased Pick & Pack and Weight Handling charge – overall effect is a typical increase of 9.3 % in fees.
- Introduction of two new product and weight tiers.
Whilst FBA are applying increases in fulfilment charges, 3P Logistics in comparison have kept prices stable, and are even able to offer incentives for qualifying customers. For further details of how we can offer a real alternative, contact our Business Development Team on 0844 871 2011.
“Media Product – standard envelope size – 13.5 % increase.”
Where did you get 13.5% from?
This is from FBA’s announcement –
The fulfulment fees for a Media Product in the Standard Envelope sise weighing 101 – 250g will increase from £0.60 to £0.68 – an increase of 13.33%. As mentioned, we would advise referring to the article for full details, which includes, as a fellow respondent adds, some reductions for European Sellers.
We have justed started running the numbers and it does depend as ever on the specific item(s) but overall you will see increases from around 10% and upwards.
When added to the fee hikes in the accessories category earlier this year an awful lot of extra cost has been loaded onto some products.
Fulfilment centres can hold their prices all they want but they cannot compete with FBA on Amazon itself in terms of gaining or defending the buybox.
They are not an option for sales on that channel – unless you have very fat margins and/or exclusive products that others and especially Amazon themselves can’t obtain.
True – but not everyone can have the buybox !
Received by email “We are pleased to announce a significant reduction to the fee structure of the European Fulfilment Network (EFN) for UK Sellers, effective immediately.”
Correct – if you are selling internationally then they have made some small reductions but that probably reflects their issues with how succesful this program currently is.
The underlying point remains – it is still going to cost you a lot more to ship via FBA in the future and the vast majority of the activity is UK based not international.
In relation to the recent Royal Mail increases the increases aren’t that bad though.
Cambridge_Blue has nailed it. If you are selling on Amazon, then it makes ZERO sense to use a third party fulfilment provider over Amazon FBA. The advantages afforded by the FBA program (cheaper fulfilment, enhanced visibility, Amazon Prime member orders, returns and customer service handled on your behalf). The increase in costs is reasonable and fair and still far less than a 3P company or Royal Mail would charge us. For non-Amazon sales, I can fully appreciate the value a 3P fulfilment company could offer.