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2023 Amazon FBA Fees: Exclusive Guide for Sellers

by Sifted Team

Jan 31, 2023

13 min read

2023 FBA Fee Changes Summary

Amazon has announced its Fulfillment by Amazon (FBA) fees will increase in 2023. The hike in Amazon seller fees took effect on January 17, 2023, and it is a step to shift Amazon’s own rising costs onto sellers. Sellers will also see higher charges for other fees.

In November 2022, Amazon adjusted its FBA fees to go into effect on January 17 and April 15 in 2023.

Here is a summary of what’s changing for FBA sellers:

  • Non-peak storage fees are increasing by $0.04 per cubic foot for standard-size items and $0.03 per cubic foot for oversized items.
  • Effective April 15, 2023, the aged inventory surcharge will apply to items sitting in Amazon warehouses for 180 days or more, excluding product categories such as watches, apparel, shoes, and jewelry.
  • An average of $0.20 reduction in returns processing fees for Apparel and Shoes category products.
  • FBA Returns and Disposal fees will almost double.
  • A reduction in FBA New Selection Program for U.S. sellers from 5% to up to 10% on average for eligible sellers.
  • An increase in eligibility price from $10 to $12 for the FBA Small and Light Program.

The start of a new year typically signals a traditional increase in rates across fulfillment providers and carriers in the United States, including Amazon.

Here’s your guide to the fee increases Amazon has announced for 2023, with solutions to help you keep track of how these changes will impact your bottom line.

FBA vs FBM

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2023 FBA Fulfillment Fee Changes

The FBA fulfillment fees are flat fees that Amazon charges to FBA sellers to fulfill their orders. These fees include receiving, storing, processing, and shipping costs. They are mandatory for all sellers who sign up for the FBA program and use their services.

Fulfillment costs are based on your selling plan, product category, shipping weight, and product dimensions. Amazon sellers should also be familiar with their product size tier, as given in this Amazon Seller Central resource.

Starting January 17, 2023, a separate 5% fuel and inflation surcharge will be eliminated from FBA fees.

Here are the fulfillment changes on FBA products, excluding apparel.

2022 Fulfillment Fee¹

Size tierShipping weightPeak fulfillment fee per unitNon-peak fulfillment fee per unit
Small standard6 oz or less$3.28$3.07
6+ to 12 oz$3.43$3.22
12+ to 16 oz$3.98$3.77
Large standard6 oz or less$4.03$3.72
6+ to 12 oz$4.27$3.96
12+ to 16 oz$5.06$4.75
1+ to 2 lb$5.71$5.40
2+ to 3 lb$6.60$6.08
3+ lb to 20 lb$6.96 + $0.32/lb above first 3 lb$6.44 + $0.32/lb above first 3 lb
Small oversize70 lb or less$10.44 + $0.40/lb above first lb$9.39 + $0.40/lb above first lb
Medium oversize150 lb or less$15.99 + $0.46/lb above first lb$13.37 + $0.46/lb above first lb
Large oversize150 lb or less$89.33 + $0.83/lb above first 90 lb$86.71 + $0.83/lb above first 90 lb
Special oversizeOver 150 lb$161.11 + $0.83/lb above first 90 lb$158.49 + $0.83/lb above first 90 lb

2023 Fulfillment Fee²

Size tierShipping weightFulfillment fee per unit
Small standard4 oz or less$3.22
4+ to 8 oz$3.40
8+ to 12 oz$3.58
12+ to 16 oz$3.77
Large standard4 oz or less$3.86
4+ to 8 oz$4.08
8+ to 12 oz$4.24
12+ to 16 oz$4.75
1+ to 1.5 lb$5.40
1.5+ to 2 lb$5.69
2+ to 2.5 lb$6.10
2.5+ to 3 lb$6.39
3+ lb to 20 lb$7.17 + $0.16/half-lb above first 3 lb
Small oversize³70 lb or less$9.73 + $0.42/lb above first lb
Medium oversize³150 lb or less$19.05 + $0.42/lb above first lb
Large oversize³150 lb or less$89.98 + $0.83/lb above first 90 lb
Special oversize³Over 150 lb$158.49 + $0.83/lb above first 90 lb

¹Peak fulfillment fee will apply from October 15, 2022, to January 14, 2023. Non-peak fulfillment fee will apply from January 15 to 16, 2023. Fees include a 5% fuel and inflation surcharge.

²Starting January 17, 2023, fees without a separate 5% fuel and inflation surcharge will apply.

³For detailed definitions of oversize size tiers, go to product size tiers.

 

Effective January 17, 2023, the FBA fulfillment fee changes for apparel are below.

2022 Fulfillment Fee¹

Size tierShipping weightPeak fulfillment fee per unitNon-peak fulfillment fee per unit
Small standard6 oz or less$3.64$3.43
6+ to 12 oz$3.81$3.60
12+ to 16 oz$4.36$4.15
Large standard6 oz or less$4.75$4.43
6+ to 12 oz$4.94$4.62
12+ to 16 oz$5.64$5.32
1+ to 2 lb$6.42$6.10
2+ to 3 lb$7.35$6.83
3+ lb to 20 lb$7.54 + $0.32/lb above first 3 lb$7.01 + $0.32/lb above first 3 lb
Small oversize70 lb or less$10.44 + $0.40/lb above first lb$9.39 + $0.40/lb above first lb
Medium oversize150 lb or less$15.99 + $0.46/lb above first lb$13.37 + $0.46/lb above first lb
Large oversize150 lb or less$89.33 + $0.83/lb above first 90 lb$86.71 + $0.83/lb above first 90 lb
Special oversizeOver 150 lb$161.11 + $0.83/lb above first 90 lb$158.49 + $0.83/lb above first 90 lb

2023 Fulfillment Fee²

Size tierShipping weightFulfillment fee per unit
Small standard4 oz or less$3.43
4+ to 8 oz$3.58
8+ to 12 oz$3.87
12+ to 16 oz$4.15
Large standard4 oz or less$4.43
4+ to 8 oz$4.63
8+ to 12 oz$4.84
12+ to 16 oz$5.32
1+ to 1.5 lb$6.10
1.5+ to 2 lb$6.37
2+ to 2.5 lb$6.83
2.5+ to 3 lb$7.05
3+ lb to 20 lb$7.17 + $0.16/half-lb above first 3 lb
Small oversize³70 lb or less$9.73 + $0.42/lb above first lb
Medium oversize³150 lb or less$19.05 + $0.42/lb above first lb
Large oversize³150 lb or less$89.98 + $0.83/lb above first 90 lb
Special oversize³Over 150 lb$158.49 + $0.83/lb above first 90 lb

¹Peak fulfillment fee will apply from October 15, 2022, to January 14, 2023. Non-peak fulfillment fee will apply from January 15 to 16, 2023. Fees include a 5% fuel and inflation surcharge.

²Starting January 17, 2023, fees without a separate 5% fuel and inflation surcharge will apply.

³For detailed definitions of oversize size tiers, go to product size tiers.

 

Products in Amazon’s dangerous goods program (also referred to as hazardous materials or hazmat products) will see per-unit fulfillment fee increases on all product size tiers except special oversized items.

2022 Fulfillment Fee¹

Size tierShipping weightPeak fulfillment fee per unitNon-peak fulfillment fee per unit
Small standard6 oz or less$4.25$4.04
6+ to 12 oz$4.49$4.28
12+ to 16 oz$4.58$4.37
Large standard6 oz or less$4.82$4.50
6+ to 12 oz$5.06$4.75
12+ to 16 oz$5.66$5.34
1+ to 2 lb$6.31$6.00
2+ to 3 lb$7.07$6.54
3+ lb to 20 lb$7.42 + $0.32/lb above first 3 lb$6.90 + $0.32/lb above first 3 lb
Small oversize70 lb or less$11.19 + $0.40/lb above first lb$10.14 + $0.40/lb above first lb
Medium oversize150 lb or less$16.86 + $0.46/lb above first lb$14.24 + $0.46/lb above first lb
Large oversize150 lb or less$101.26 + $0.83/lb above first 90 lb$98.64 + $0.83/lb above first 90 lb
Special oversizeOver 150 lb$181.90 + $0.83/lb above first 90 lb$179.28 + $0.83/lb above first 90 lb

2023 Fulfillment Fee²

Size tierShipping weightFulfillment fee per unit
Small standard4 oz or less$4.19
4+ to 8 oz$4.48
8+ to 12 oz$4.64
12+ to 16 oz$4.37
Large standard4 oz or less$4.64
4+ to 8 oz$4.89
8+ to 12 oz$5.03
12+ to 16 oz$5.34
1+ to 1.5 lb$6.00
1.5+ to 2 lb$6.29
2+ to 2.5 lb$6.56
2.5+ to 3 lb$6.85
3+ lb to 20 lb$7.63 + $0.16/half-lb above first 3 lb
Small oversize³70 lb or less$10.48 + $0.42/lb above first lb
Medium oversize³150 lb or less$19.92 + $0.42/lb above first lb
Large oversize³150 lb or less$101.91 + $0.83/lb above first 90 lb
Special oversize³Over 150 lb$179.28 + $0.83/lb above first 90 lb

¹Peak fulfillment fee will apply from October 15, 2022, to January 14, 2023. Non-peak fulfillment fee will apply from January 15 to 16, 2023. Fees include a 5% fuel and inflation surcharge.

²Starting January 17, 2023, fees without a separate 5% fuel and inflation surcharge will apply.

³For detailed definitions of oversize size tiers, go to product size tiers.

 

You can also use the FBA calculator provided by Amazon to figure out the possible fulfillment costs charged per item.

 

2023 FBA Storage Fee Changes

Amazon has two types of storage fees, namely monthly storage fees and long-term storage fees.

Monthly storage charges are based on the product size tiers (standard-size and oversize) and the number of cubic feet your product occupies in Amazon’s warehouse. In addition, monthly inventory storage fees vary depending on the month of the year due to changes in demand.

Effective February 1, 2023, the FBA monthly storage fees are below.

Prior to February 1, 2023

Storage monthStandard-sizeOversize
January-September$0.83 per cubic foot$0.53 per cubic foot
October-December$2.40 per cubic foot$1.20 per cubic foot

February 1, 2023, and after

Storage monthStandard-sizeOversize
January-September$0.87 per cubic foot$0.56 per cubic foot
October-December$2.40 per cubic foot$1.40 per cubic foot

FBA aged inventory surcharge (previously known as long-term storage fees) is the additional fee charged on every inventory sitting in the fulfillment center for six months or longer.

Here is the aged inventory surcharge before April 15, 2023:

  • Any item stored for 271 days or more will come with a $1.50 per cubic foot surcharge.
  • Any item stored for 301-330 days will come with a $1.50 per cubic foot surcharge.
  • Any item stored for 331-365 days will come with a $1.50 per cubic foot surcharge.
  • Any item stored for 365 days or more will come with a $6.90 per cubic foot or $0.15 per unit surcharge (whichever is greater).

Effective April 15, 2023, the aged inventory surcharge will be as follows:

Prior to April 15, 2023

Inventory assessment dateItems aged 181-210 daysItems aged 211-240 daysItems aged 241-270 daysItems aged 271-300 daysItems aged 301-330 daysItems aged 331-365 daysItems aged 365 days or more
Monthly (every 15th of the month)N/AN/AN/A$1.50 per cubic foot$1.50 per cubic foot$1.50 per cubic foot$6.90 per cubic foot or $0.15 per unit, whichever is greater

April 15, 2023 and after

Inventory assessment dateItems aged 181-210 daysItems aged 211-240 daysItems aged 241-270 daysItems aged 271-300 daysItems aged 301-330 daysItems aged 331-365 daysItems aged 365 days or more
Monthly (every 15th of the month)$0.50 per cubic foot (excluding certain items)*$1.00 per cubic foot (excluding certain items)*$1.50 per cubic foot (excluding certain items)*$3.80 per cubic foot$4.00 per cubic foot$4.20 per cubic foot$6.90 per cubic foot or $0.15 per unit, whichever is greater
  • Any item stored for 181-210 days will come with a $0.50 per cubic foot surcharge.*
  • Any item stored for 211-240 days will come with a $1.00 per cubic foot surcharge.*
  • Any item stored for 241-270 days will come with a $1.50 per cubic foot surcharge.*
  • Any item stored for 270-300 days will come with a $3.80 per cubic foot surcharge.
  • Any item stored for 301-330 days will come with a $4.00 per cubic foot surcharge.
  • Any item stored for 331-365 days will come with a $4.20 per cubic foot surcharge.
  • Any item stored for 365 days or more will come with a $6.90 per cubic foot or $0.15 per unit surcharge (whichever is greater).

*Except for certain items included in the clothing, shoes, bags, jewelry, and watches categories.

You can check if any of your inventory is subject to aged inventory surcharges by regularly checking their inventory age or inventory age reports.

 

2023 FBA Removal and Disposal Fee Changes

Sellers can avoid paying unnecessary FBA costs like aged inventory surcharge by removing their inventory or destroying them. A removal order fee is charged when you return inventory back from Amazon’s fulfillment center, whereas a disposal fee is the cost of disposal of the slow-moving items at Amazon’s warehouse.

FBA removal and disposal fees are determined based on the size tier, per unit fee, and the item’s shipping weight.

Effective January 17, 2023, FBA removal and disposal fees will increase between $0.45 to $1.06 for standard-size products and between $1.62 to $4.38, depending on the shipping weight of your product.

Before January 17, 2023

Size TierShipping weightRemoval or disposal fee per unit
Standard-size0 to 0.5 lb$0.52
0.5+ to 1.0 lb$0.75
1.0+ to 2.0 lb$1.14
More than 2 lb$1.51 + $0.63/lb above 2 lb
Oversize and special handling items*0 to 1.0 lb$1.50
1+ to 2.0 lb$1.96
2.0+ to 4.0 lb$2.89
4.0+ to 10.0 lb$5.05
More than 10.0 lb$7.25 + $0.63/lb above 10 lb

January 17, 2023, and after

Size TierShipping weightRemoval or disposal fee per unit
Standard-size0 to 0.5 lb$0.97
0.5+ to 1.0 lb$1.46
1.0+ to 2.0 lb$2.20
More than 2 lb$2.83 + $1.06/lb above 2 lb
Oversize and special handling items*0 to 1.0 lb$3.12
1+ to 2.0 lb$4.07
2.0+ to 4.0 lb$5.56
4.0+ to 10.0 lb$9.43
More than 10.0 lb$13.05 + $1.06/lb above 10 lb

* Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods

 

2023 FBA Returns Processing Fee Changes

FBA returns processing fee is charged when a customer returns a product sold on Amazon. This fee only applies to products included in the apparel and shoes categories. The platform doesn’t charge returns processing fees on certain items such as watches, luggage, sunglasses, handbags, and jewelry.

FBA returns fee is determined based on the product size tier and shipping weight.

Effective January 17, 2023, Amazon will reduce its returns processing fee in the apparel and shoes categories by an average of $0.20 per item. Returns fees range from $2.12 to $2.32 for small standard-size items, $2.40 to $3.41+ for large-size items, and $4.19 to $75.08 for oversize products.

Size tierShipping weightReturns processing fee
Small standard4 oz or less$2.12
4+ to 8 oz$2.16
8+ to 12 oz$2.23
12+ to 16 oz$2.32
Large standard4 oz or less$2.40
4+ to 8 oz$2.44
8+ to 12 oz$2.53
12+ to 16 oz$2.61
16+ oz to 1.5 lb$2.71
1.5+ to 2 lb$2.81
2+ to 2.5 lb$2.95
2.5+ to 3 lb$3.13
3+ lb to 20 lb$3.41 + $0.20/lb above first 3 lb
OversizeSmall$4.19 + $0.20/lb above first 2 lb
Medium $10.57 + $0.25/lb above first 2 lb
Large$43.70 + $0.25/lb above first 90 lb
Special$75.08 + $0.25/lb above first 90 lb

 

2023 FBA Small and Light Fee Changes

If you sell a product that costs $12 or less, you can lower your FBA fees using the FBA Small and Light program. This service allows sellers to sell small, cheap, and fast-moving items while reducing fulfillment costs.

To be eligible for the FBA Small and Light program, your item’s price must be $12 or less, measure less than 18 x 14 x 8 inches, and weigh less than 3 lbs. In addition, your product must not be a temperature-sensitive product like chocolate or belong to Amazon’s list of restricted items.

Effective January 17, 2023, Amazon has increased the small and light price tier from $10 to $12 or less, whereas fulfillment fees for these items will stay the same.

Before January 17, 2023¹

Size tierShipping weightFulfillment fee per unit
Small standard6 oz or less$2.47
6+ to 12 oz$2.61
12+ to 16 oz$3.15
Large standard6 oz or less$2.66
6+ to 12 oz$2.94
12+ to 16 oz$3.77
1+ to 2 lb$4.42
2+ to 3 lb$5.19

January 17, 2023 and after²

Size tierShipping weightFulfillment fee per unit
Small standard4 oz or less$2.47
4+ to 8 oz$2.54
8+ to 12 oz$2.61
12+ to 16 oz$3.15
Large standard4 oz or less$2.66
4+ to 8 oz$2.77
8+ to 12 oz$2.94
12+ to 16 oz$3.77
16+ oz to 1.5 lb$4.42
1.5+ to 2 lb$4.68
2+ to 2.5 lb$5.19
2.5+ to 3 lb$5.40

¹Fees include a 5% fuel and inflation surcharge. Rates are rounded for simplicity and surcharge is subject to change.

²Fees do not include a separate 5% fuel and inflation surcharge

 

2023 FBA New Selection Program Changes

Amazon introduced the FBA New Selection Program in March 2022 to encourage existing Amazon sellers to add new products to the Amazon Prime catalog and attract new sellers to the platform. It is ideal for new and professional sellers looking to streamline their business process.

This program offers “free sponsored ads, promotion clicks, shipping, removals, and returns on eligible, new products for a limited time” to eligible, new-to-FBA ASINs.

Effective March 2023, Amazon will increase its rebate from 5% to up to 10% on average for eligible sellers.

  • The rebate will apply on eligible standard-size items up to 100 units per ASIN for up to 120 days, up from 90 days.*
  • The rebate will apply on eligible oversize items up to 30 units per ASIN for up to 90 days.*

*Exceptions include Apparel and Shoes categories.

 

Miscellaneous Service Fees

Here’s a rundown of Amazon FBA miscellaneous fees in 2023.

  • Closing fees: A closing fee is a referral fee charged by Amazon for products falling under media categories such as DVDs and CDS, books, video games, video game consoles, and accessories. Amazon sets a flat $1.80 fee on each item sold.
  • High-volume listing fees: Amazon deducts a fixed fee of $0.005 per SKU over the first 100,000 listings without sales in the past year. This charge covers the costs of cataloging and maintaining a large number of product listings.
  • Rental book service fees: Amazon charges a flat fee of $5.00 for each book you rent out to a customer.

 

What FBA Sellers Should Prioritize in 2023

Now that you know the FBA 2023 rate changes and how much you will end up paying compared to last year, consider how you can minimize any negative impact on your Amazon business. This exercise is also essential if you plan to sell or scale your eCommerce business.

  1. For starters, your fees are determined based on five things: the weight and dimensions of your product, your product category, the sales channels, and the fulfillment methods you use.
  2. Next, there are FBA and miscellaneous fees based on specific situations.

These rate hikes will decrease your margins, especially in terms of storage fees. Use this information to optimize your inventory levels or adjust product prices to cover these additional costs.

Similarly, stay on top of your aged inventory, and make any removal orders before the surcharge hits your business. And consider liquidation options as an alternative option where it makes sense.

With 2023 FBA fees already in effect, take a look at the products you sell and the requirements of your business to adjust your profit calculations for the year.

 

How will these changes impact your business?

While these Amazon fee increases may seem relatively minimal, they could significantly impact an FBA seller’s bottom line if you’re not closely tracking and accounting for them in relation to your profit margins.

Even Amazon makes mistakes such as mishandling inventory, overcharging sellers, and issuing incorrect refunds. These discrepancies can result in losses of up to 3 percent of your total Amazon sales. You can save money by regularly tracking your Amazon fees, inventory management, and refunds.

Ultimately, your success as an FBA seller won’t just rely on your ability to overcome FBA rate hikes, it hinges on your capacity to catch and hold Amazon accountable for their mistakes. Enter Sifted’s Marketplace Intelligence: an all-in-one software that gives you complete visibility into your FBA fees, the tools to track and pinpoint any error or discrepancy, and the levers to pull for your deserved reimbursements.

Finally, the upper hand your FBA business needs in a complex Amazon marketplace.

Topics: Amazon, eCommerce Shipping, Surcharges
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