Amazon’s annual increase to Fulfillment by Amazon (FBA) fees is arriving quickly. The increased shipping costs will take effect on February 18th and the increased storage rates on March 1st. Since FBA fees are calculated based on the size and weight of each product, the effect of the increase will vary based on the products in your catalog. That makes it hard to tell how much of an impact the change will have on your Amazon selling business.

At DNA Response, we prepared for the fee increases by analyzing our catalog of products to see how the fee increase will impact our margins. We use the data to adjust prices or discontinue products. I recommend that every Amazon seller does the same thing.

Analyzing Impact

Keep in mind that our catalog is not perfectly distributed between all of FBA’s size tiers. There are some size tiers where we have no products. The distribution of price increases for your catalog may look different.

Our catalog saw very large increases to fees in the Large Standard size categories but very small fee increases in other categories.

averge fee increase by size

The majority of our products (252 out of 436), had a fee increase between 13% and 14%. The majority of our products fall in the Large Standard Non-media size category so it is not surprising for us to see this grouped distribution.

frequency of percent increase

The majority of cost increases came from the an increase in weight handling fees. This underscores the business value of selling small and light products online.

Fee Change
Order Handling 0.0%
Pick and Pack 1.6%
Weight Handling 14.1%

Example Products

I pulled together a few examples so you can get a sense for what types of products will see large increases and which types of products will see small increases.

Median increase: 13.1%

median fba increase example

Dimensions: 8.6 x 7.1 x 2 inches
Weight: 0.4 lbs
Size Category: Large Standard Non-media

Fee Old Value New Value Percent Increase
Order Handling $1.00 $1.00 0.0%
Pick and Pack 1.04 1.06 1.9%
Weight Handling 0.63 0.96 52.4%
Total $2.67 $3.02 13.1%

Maximum increase: 19.8%

max fba increase example

Dimensions: 11.2 x 7.9 x 1.1 inches
Weight: 1.1 lbs
Size Category: Large Standard Media

Fee Old Value New Value Percent Increase
Order Handling $0.00 $0.00 0.0%
Pick and Pack 1.04 1.06 1.9%
Weight Handling 0.88 1.24 40.9%
Total $1.92 $2.30 19.8%

Minimum increase: 0.8%

Dimensions: 5.0 x 0.7 x 0.7 inches
Weight: 0.4 lbs
Size Category: Small Standard Non-media

Fee Old Value New Value Percent Increase
Order Handling $1.00 $1.00 0.0%
Pick and Pack 1.04 1.06 1.9%
Weight Handling 0.50 0.50 0.0%
Total $2.54 $2.56 0.8%

Storage Fee Increases

Amazon increase to storage fees is much simpler. The standard-size price per cubic foot increases by 5.9% and the oversize price per cubic foot increases by 7.5%.

The new rates go into effect on March 1st.

Analyze your Catalog

To analyze your catalog, download the Fee Preview Report from Seller Central. Right now, it includes the current FBA rates and the new FBA rates. Use the updated fees to re-calculate your margins for every product to see which products will no longer be profitable to sell.

If Amazon’s fees require you to adjust your catalog, you can use our updated Bulk FBA Fee Calculator to analyze new products from your vendors. It works especially well for products that aren’t yet listed on your Amazon account since it does not require an ASIN to estimate the FBA fee. It is updated to use Amazon’s new fee structure. If you are only analyzing one product at a time, Amazon’s FBA calculator works quickly as well.