Amazon Europe FBA fees increased

Every year, Amazon increases their fees. It’s not unusual for businesses to do so and it’s certainly not a surprise. They usually keep it fairly simple, but this year there’s quite an update to the Amazon Europe FBA fees coming into effect from February 5th 2024.

What are the new Amazon Europe FBA fees?

There are a number of fee increases coming into effect next month for Amazon Europe FBA sellers. Here’s a round up of the key takeaways:

• FBA fee increases across the board. This is expected as it happens every year, however this year seems to hit smaller products more, which will hurt profitability on anything under a £10 sales price.
• Large increases to returns processing fees
• Return to seller fees to increase by approx. 40%
• Storage fee base rate to increase by approx. 10%
• Monthly storage fee increases by around 10-12%
• New inventory age boundaries means more ‘steps’ of increasing charges
• Storage utilisation surcharge increases (this almost doubles per cubic foot)
• The low inventory fee (the fee for having no or little stock) is applicable to pan-EU, not local inventory
• Prep services – labelling service increases by nearly double, going from 25p to 45p for UK sellers

Whilst there is an Amazon fee reductions page, it seems almost pointless having it, as there are only a few reductions to random fees in Poland and Belgium.

These increases in fees are quite large compared to normal. Our speculation is that it’s mostly because of how competitive shipping has currently become, coupled with the increase in fuel prices and utilities. Because Amazon move products between warehouses to bring them closer to Amazon shoppers, there can be multiple shipping journeys before it reaches its final destination. This cost adds up and will most likely change soon. We’ve noticed several smaller sellers being asked to split their orders more often and send them to multiple locations as a result.

While the costs are increasing, this isn’t slowing down the rate of businesses using the platform. There’s still an even balance between long term sellers sticking on the platform and new sellers joining, so it looks like businesses aren’t phased by ever-growing prices.

How will this affect cost of shipping?

To give you a comparison, here are three products we work with and the cost of shipping following these price increases.

• Grocery product – £2.42 to £2.64
• Make-up product – £1.81 to £1.89
• LED Camera Light – £3.41 to £3.58

It may only seem like pennies but it all adds up. We can only hope the next price increase isn’t quite as significant.

For more updates from Amazon, head to our blog.