Amazon US Multi-channel Fulfillment fee changes and Amazon UK minimum fee changes

Info Exchange. Stay Informed. Stay Connected.

by Client Services | Aug 28, 2017

There has been a lot of notable marketplace activity in recent weeks, and here are a couple more headlines from Amazon Seller Central to have on your radar:

 

Amazon Multi-Channel Fulfillment U.S. Fee Changes – Effective August 30, 2017

Multi-Channel Fulfillment (MCF) allows you to have Amazon fulfill orders from your other sales channels with the same fast, efficient delivery that powers Amazon Prime and your FBA business. This includes build-in integrations with website providers such as Shopify and 3dcart. MCF fees in the U.S. will be adjusted to reflect the changing costs of fulfillment and to better align with Fulfillment By Amazon’s fee structure for orders placed on Amazon.com. The new rates will go into effect August 30, 2017. We’re notifying you now to give you time to plan for these changes.

We’re introducing the following updates to MCF fees:

  • Consolidation of Fulfillment Fees: The Order Handling, Pick & Pack, and Weight Handling fees will be consolidated into a single, per-unit Fulfillment Fee.
  • New Product Size Tiers: The current product size tiers will be segmented into the following tiers: Small Standard-Size, Large Standard-Size, Small Oversize, Medium Oversize, Large Oversize, and Special Oversize to align with Fulfillment by Amazon (FBA). Media will no longer be a separate category.
  • Discounted Fees for Multi-Unit Orders: We will offer discounted per-unit fulfillment fees based on the number of units in a customer order for the following product size tiers: Small Standard-Size, Large Standard-Size, and Small Oversize.
  • Changes to Unit and Dimensional Weight: We will change the way we calculate unit weight and dimensional weight to match the calculations used by FBA for orders placed on Amazon.com. Unit weight will be calculated by adding individual unit weight to a standard packaging weight and then rounding up to the nearest pound. Dimensional weight will be calculated by taking the unit volume in cubic inches and dividing by 166.

For complete details on the fee changes, including product examples and definitions, visit our 2017 Multi-Channel Fulfillment Fee Changes page.

 

Important changes to the Minimum Fee on Amazon.co.uk in September 2017

To help you to list more products that customers love, we are removing the minimum fee for all items sold on Amazon.co.uk. Effective 1 September 2017, you will pay the applicable referral fee on the total sales price paid by the buyer, including any shipping or gift wrap charges.

Current fees:

  • Applicable Referral Fee, applied as a percentage of the total sales price (with a minimum fee of GBP 0.40)

New fees:

  • Applicable Referral Fee, applied as a percentage of the total sales price (no minimum fee)

 

Examples:

  1.  The current fee for an item with a total sales price of GBP 2.00, belonging to a category with a referral fee of 15% and a minimum fee of GBP 0.40, would be GBP 0.40, calculated as the greater of 15% of the total sales price or GBP 0.40 per item. After 1 September 2017, the applicable fee would be GBP 0.30, calculated as 15% of the total sales price.
  2.  The current fee for an item with a total sales price of GBP 2.00, belonging to a category with a referral fee of 12% and a minimum fee of GBP 0.40, would be GBP 0.40, calculated as the greater of 12% of the total sales price or GBP 0.40 per item. After 1 September 2017, the applicable fee would be GBP 0.24, calculated as 12% of the total sales price.

Note: This minimum fee waiver is not definitive and Amazon reserves the right to make changes in the future.

 

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