Announcement reposted from Amazon Canada:
As we near the end of 2023, we would like to thank you for your continued partnership in serving customers and together achieving new milestones of success. This year, our partnership delivered the largest selection of products to Canada Prime members at the fastest speeds ever. As of the end of September, more than 205 million product units were delivered on the same or next day—more than seven times what we delivered at those speeds in 2019—with the majority of these units sold by independent sellers like you. We have continued to focus on providing you with powerful selling capabilities, including investment of billions of dollars in technology, transportation, and infrastructure to reinvent our fulfillment network. By regionalizing our Canada fulfilment centre operations and growing our one-day delivery network, we are able to place more products closer to customers, in order to deliver products faster and at a lower cost. These investments result in higher customer satisfaction and more sales for you.
As we look to 2024, we will implement a set of fee changes that continue to provide you with a great value and allow us to partner together to offer customers amazing service while reducing our collective costs to do so. After these changes, we expect that sellers will see an average increase of $0.22 CAD in fees per unit sold. Amazon’s fulfilment fees will continue to remain an average of 38% less expensive than standard-shipping methods offered by other major third-party logistics providers. We will make the following changes starting February 5, 2024, unless otherwise stated:
- We will introduce Low-Price FBA fees, where products priced under $11 CAD will receive a $0.55 CAD fee discount. Go to the Low-price FBA fees page for more details.
- In addition, to reflect the cost savings when products can be shipped in their existing packaging, we will offer a fulfilment fee discount ranging from $0.05 CAD to $1.68 CAD, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program. Go to the Ships in Product Packaging (SIPP) program pagefor more details.
- On average, we will increase FBA fulfilment fee rates by $0.20 CAD per unit. Go to the FBA fulfilment fee rates pagefor more details.
- We will introduce a returns processing fee for Clothing & Accessories and Footwear products to address the relatively higher rate of returns in these categories. These fees will apply starting June 1, 2024. Go to the Returns processing fee page for more details.
Maintaining sufficient inventory levels enables us to place inventory closer to customers across our network, reducing costs to fulfil orders. In cases where you have low inventory levels, this drives transportation costs higher. Similarly, maintaining excess amounts of aged inventory utilizes storage space that could be used more efficiently. We will introduce fees to align with these underlying costs:
- We will introduce a low-inventory-level fee for envelope and standard-sized products. The fee applies if you carry consistently low levels of inventory relative to unit sales, as this inhibits our ability to distribute products across our network, degrading delivery speeds and increasing our shipping costs. Sellers can avoid this fee by maintaining more than four weeks of inventory relative to sales. These fees will apply starting April 1, 2024. Go to the Low-inventory-level fee page for more details.
- We will increase the aged inventory surcharge for inventory stored beyond 365 days. Additionally, we will introduce aged inventory surcharges on inventory stored between 271-365 days. These changes will take effect for the May 15, 2024, aged inventory assessment date. We encourage you to check your aged inventory and take action on these products.
We will also provide the following new or expanded services and benefits:
- We introduced a new, lower pricing structure for Amazon Vine. This program is designed to help brands get insightful reviews and help customers make informed buying decisions. The new fee tiers apply to products enrolled in the program on or after October 19, 2023. Go to the Amazon Vine pagefor more details.
- We will expand benefits as part of the Canada FBA New Selection program. We will provide an average 10% rebate on sales of eligible new-to-FBA parent products, newly including these benefits for non-branded selection. In addition, we will provide expanded program eligibility for oversize selection and newly offer Vine benefits for eligible sellers and associated selection. Changes will take place starting March 1, 2024. Go to the FBA New Selection page for more details.
We are also making annual updates to Monthly Storage, the Storage Utilization Surcharge, and Prep fees.
For a detailed summary of all fee changes, go to amazon.ca/selling-fee-changes. For fee updates by type, go to 2024 Canada Fulfilment by Amazon fee changes and 2024 Canada storage fee changes.
We appreciate your taking the time to understand these new fees, how they continue to provide you with a great value, and how they help us continue to partner together to offer customers amazing service while reducing our collective costs to do so.
We wish you a healthy and prosperous holiday season, and we thank you for your continued partnership.