Amazon Adjusts Fees For Remote Fulfillment With FBA

US NARF sellers, brace yourselves for another fee adjustment! 😁

Those who participate in Remote Fulfillment with FBA, also known as North America Remote Fulfillment (NARF), will see a rate increase starting June 30, 2022. This move is in response to the rising costs of storage, fulfillment, transportation, and customer service across the US, Canada, and Mexico.

😤 The new fee adjustment will also include dimensional weight (DIM weight) to reflect the latest FBA fee structure. This means the greater of the unit weight (aka actual weight) or DIM weight will be utilized to determine your shipping weight and fees for all product size tiers.

Updates to the Remote Fulfillment with FBA Fees

The Table of Fees below shows the latest fee changes:

Canada

Based on the new fee structure, here’s how DIM weight pricing will impact your margins.

Let’s assume your large standard size product only weighs 3 lbs, but the dimensional weight is 9 lbs. In that case, you are going to be charged CAD $13.90 + $0.80/lb above first 3 lbs (x6) or CAD $18.70/unit. Before the update, you would only have paid CAD $12.79/unit.

So, with DIM weight pricing, you’re paying Amazon CAD $5.91 (approx. $4.70 USD) more than you’d paid previously. 😦

Mexico

Using the previous example, shipping a large standard size unit that weighs 3lbs, but the DIM weight is 9lbs is now going to cost you MXN $224.07/unit versus the previous rate of MXN $159.70 (based on unit weight), a MXN $64.37 increase – or approximately $3.30 USD.

Although Amazon says that these rate adjustments are not above industry-average increases for fulfillment services, we all know that being charged based on DIM weight is quite a big deal for sellers with thin margins. 🤔

And as we’ve previously reported, some sellers within our SoStocked community have reported seeing their FBA fulfillment fees climb by $1 per unit. One seller even saw a 94% increase in fulfillment fees. So, if you’re already dealing with slim margins, increases like these can quickly make your products unprofitable.

Related: How to Increase Your Profit Margins

Beware of Automatic Enrollment in Remote Fulfillment With FBA

Amazon may start automatically enrolling sellers into its Remote Fulfillment program. 😦

On the news announcement page, some sellers reported receiving a notification about “Automatic Enrollment in Remote Fulfillment” on the Seller Central home page with the option to opt out before the service goes live.

If you don’t opt out before the start date, your products will most likely become available for sale on Amazon.ca (Canada) and Amazon.com.mx (Mexico), which means added fees!

This auto-enrollment might be a gradual roll out, but it’s crucial to be aware of these things as early as now. Forgetting to opt out of a paid service you don’t need or want could result in Amazon eating into your profits, which is pretty similar to what’s happening with their aging inventory removal services.

In case you’re not aware, Amazon has recently increased their removal/disposal fees, and in April, they said that they will automatically dispose of aging inventory to make room for Prime Day. What’s suspicious about this is that around the same time Amazon raised their removal order fees, they also applied stricter automatic removals, including adding an additional surcharge on aged inventory. 🤔

Overall, Amazon FBA fees continue to climb despite many sellers reacting strongly against the price hikes. I recommend implementing some profit recovery strategies to protect your margins, if passing those fee increases on to your customers isn’t an option right now. 💪

Make sure to also read our blog posts that mention these profit recovery strategies to learn more.

Related: Master Carton Calculator to Optimize Packaging and Reduce Shipping Costs, FBA Fee Calculator to Calculate Profitability, Inventory-Minded Marketing for Amazon Sellers, How to Reduce Excess Inventory