Amazon announces changes to Shipping Terms

Amazon announces changes to Shipping Terms

 

Other packaging sizes, changed weight classes, changes in shipping fees: the Amazon trading platform has announced numerous changes in the conditions for merchants who use the group’s fulfillment. The tendency: it will be more expensive. […]

The online platform Amazon has announced numerous changes in the shipping conditions for merchants, which also allow shipping via Amazon. This is reported by the Amazon agency Revoic in a blog post with reference to group information in Seller Central.

Accordingly, the changes will apply from March 31, 2022 for merchants who use FBA (Fulfillment by Amazon). Here are the changes in the quick run:

New weight and shipping classes

The sizes of shipping envelopes and boxes are changed. The large shipping envelope is reduced from 5 cm to 4 cm in height. New is an extra-large envelope, which then goes up to 6 cm in height. In addition, Amazon is introducing a new “small package” with the maximum dimensions of 35 x 25 x 12 cm and a weight of between 150 grams and 3.9 kilograms.

New: The volumetric weight

In addition to the previous unit weight, Amazon is also introducing the volume weight. It is calculated from length x width x height in cm3 divided by 5,000. The higher value is used for the calculation of the shipping costs. In calculation examples, the Group explains the differences. For example, an ASIN with a unit weight of 1.5 kg and dimensions of 48 x 10 x 10 cm is still calculated with 1.5 kg, since a calculation of the volume weight would result in only 0.96 kg. According to the conversion formula, an ASIN of the same weight per unit weight, but which is significantly larger at 40 x 35 x 30 cm, reaches a volume weight of 8.7 kg and thus falls into a higher, more expensive weight class.

Shipping

In general, the shipping costs increase. After the increase in FBA tariffs of up to eight percent for nationwide shipping in June 2021, prices for pan-European and local shipping are now rising by an average of six percent. The standard packages are becoming more expensive than average. But also for the “Small and Light” program, it will be on average twelve percent more expensive in Germany.

Fee for storage in Germany decreases

Dealers who only store their FBA goods in Germany and waived their participation in the “Mitteleuropa” and “PAN-EU” programs had to pay a fee of 0.35 euros for each unit sold. This fee is now reduced to 0.25 cents, which makes it more attractive to store your goods only in Germany.

Remissions and disposal will be more expensive

Amazon increases the cost of FBA goods that are to be returned to Seller by Amazon (remission) or disposed of. In the standard size, the cost of an item with 501g increases from 0.55 to 0.78 euros with remission. A disposal in the same size and weight increases from 60 to 90 cents. Stock can still be retrieved at the old cost as of March 31, 2022, even if the goods should arrive later.

Higher storage fees

Amazon is increasing storage fees for all standard-sized products, excluding dangerous goods. The fees in standard size increase from 15.60 to 16.69 euros per month per cubic meter in the period January to September.

Higher fees for old stock in the FBA warehouse

So far, Amazon has already charged 170 euros per cubic meter for goods that have been stored in the FBA warehouse for more than 365 days. Now a fee of 37 euros will be added from the 331st day. Excluded from this are clothing, shoes, bags, luggage, watches and jewelry.

Shipping to the UK

From March 2022, Amazon will again transport goods between the EU and the UK. This allows local inventory that is stored on one side of the customs border to be sold to customers on the other side. For sellers using the PAN-EU, Amazon wants to prioritize the shipping of inventory on site. So there are either shipping fees for the domestic or fees for the European Shipping Network (EFN). As an incentive for trading with the UK, the fees incurred will be reduced by 20 percent for one year.

Discount extended

The already running discount program for sales fees for clothing, shoes and bags would have expired at the end of March 2022, but is now to be extended until March 31, 2023. This means that the percentage sales fee for the share of the total sales price above € 45 is halved from 15 to 7 percent.

The Group provides more detailed information on the new shipping conditions in the Seller Central.

*Frank Kemper joined the team in 2001 and headed the print edition of INTERNET WORLD BUSINESS from 2013 to 2020. The graduate of the German School of Journalism in Munich can look back on over 30 years of editorial experience and has been online for almost as long.

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