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Amazon Trends for 2023: What’s Next for FBA Sellers

Dec 15, 2022

15 min read

These last few years for Amazon sellers have been…interesting, to say the least. But through this mountain of change, brands have adapted, survived, and even thrived! How can FBA sellers keep that momentum going into the new year?

First, you don’t want to be left behind. The eCommerce marketplace continues to shift, and brand relevance is a must for sustainable success. 2023 will bring significant challenges for Amazon sellers to keep up with.

Here are the top Amazon trends for 2023:

 

Trend #1: Social Shopping

Social commerce is a fast-growing industry projected to skyrocket over the next few years.

What is social commerce?

Social commerce is the act of selling products on social media platforms. Companies can keep consumers on the social media app while simultaneously selling products. This fast growing commerce is easier and more convenient for consumers giving it a skyrocketing rise in popularity.

A recent report by Accenture found that social commerce generated international sales of over $560 billion in 2021, and by 2025 that number is expected to surpass $1.2 trillion. Of course, this is no surprise when over half the globe’s population is active on social media, spending upwards of 2+ hours on their social channels daily.

Image showing $560 billion worth of international sales generated by social commerce in 2021

(Accenture, 2022).

The result is that social media will continue to be a core driver of eCommerce for 2023, and media giants like TikTok and Meta will cultivate and adapt to those trends. (TikTok even plans to build its own product fulfillment centers). Amazon is putting a massive focus on media and marketing efforts. From the Amazon Influencer Program, Amazon Live, and Amazon Attribution in 2021/2022, it’s evident that Amazon is shifting its business model and platform to be more social media-esque to conform to the social commerce world unfolding before us.

What Does This Mean for FBA Sellers?

They won’t be left in the dust. Instead, we’re seeing the Age of Amazon Influencers as staples in the marketplace. They’re in high demand for Amazon marketing, and sellers are taking notice. With the Amazon Attribution tab and video advertising becoming hot opportunities for sellers to expand their brands, experts predict this trend to stay and completely change how sellers market their products.

What Is Amazon Attribution?

Amazon positions Amazon Attribution as an “advertising and analytics measurement solution that gives marketers insight into how their non-Amazon marketing channels perform on Amazon.” It gives sellers visibility into how customers are discovering their products on Amazon from advertising channels outside of the platform. Sellers can use these analytics and insights to plan and optimize marketing strategies rooted in data. Data that tells you what resonates with your customers and drives value for your brand on Amazon.

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Trend #2: Advertising Outside of Amazon

Amazon wants their brand, and brands on their platform, to be more active in establishing direct relationships with users. As a result, Amazon offers tons of tools for brands to market on their platform.

The issue with that is the rise of social commerce and Amazon influencer marketing. To stay ahead of the competition (or other sellers), diversify your advertising across multiple platforms like Amazon, Facebook, Instagram, etc. Amazon experts predict that more ad dollars will shift to influencer marketing on social media to keep brands ahead of trends.

Because of the increased ad spend on social platforms, experts also predict a spike in eCommerce sales driven by social media, with advertising strategies to follow this move toward a social commerce market.

What Does This Mean for FBA Sellers?

Stay up to date with current ad trends and marketing tactics, so you’re not left behind. Brands will only survive when they adapt; without social media, staying relevant to your consumers is impossible.

Use social media to your advantage–explore the platforms that house your target audience and expand. expand. expand.

Check out the best social media platforms for different industries:

  • Facebook: News, Health, Entertainment, and Fashion (Over 75% of users are over 25)
  • Instagram: Lifestyle, Fitness, Travel, Beauty, and Food
  • Twitter: Tech, Finance, Retail, Travel, News
  • LinkedIn: IT, Tech, Infrastructure, Legal, Manufacturing, Supply Chain

 

Trend #3: Voice eCommerce

Today, 44% of Amazon shoppers use voice assistants and the voice commerce market is expected to increase by 320% in 2022—from $4.6 billion to $19.4 billion. Taking note of this spike in voice assistant adoption, Amazon released Alexa Voice Shopping, which allows shoppers to browse for items, add to carts, and track orders. And Amazon sellers should take note of this as they expand their product strategy. Undoubtedly, Amazon will continue to expand this voice commerce abilities in 2023 to be available for registered brands.

Expect Amazon to enhance its voice search products and services to be part of daily life and a massive influx of eCommerce sales to be driven by Amazon’s voice search feature.

What Does This Mean for FBA Sellers?

Get working on a serious SEO strategy. Customers are using voice searching for information about your product without ever even seeing it or knowing who you are. Optimize your site for voice search to increase traffic for the right search queries and open doors to generate new leads. Because one of the best ways to reach new customers is through new sales channels.

Also, take advantage of the frequently asked questions from customers coming through this channel. Applying these insights to your product listings and marketing efforts will provide invaluable data for sellers to get their voice and solutions in front of customers.

 

Trend #4: Massive Influx of Sellers in the Market

Everyone wants to be on Amazon. Customers trust their business, and the numbers speak for themselves. 92% of customers are even more likely to buy products when they’re on the Amazon platformthose are numbers politicians would die for. And with over 98 million users and nearly 2 million brands on Amazon (600,000 of which joined the FBA program in 2021), it’s the hottest marketplace on the planet.

Brands that want to be where their customers are know that more buyers = more revenue, and when your customers are on Amazon–it’s the most desirable marketplace to sell on to boost profits. Amazon gives brands enhanced exposure and new customer acquisition, but the competition isn’t just getting real–in some cases, it’s actually fake. Amazon has been cracking down on counterfeiting operations, but there’s no sign of complete eradication for the foreseeable future, meaning sellers (and consumers) need to be aware of product authenticity.

What Does This Mean for FBA Sellers?

Whether it’s black market clones entering the market, a major competitor finally putting their products on Amazon and outranking you, or even Amazon creating an ‘Amazon basics’ product in your category–it adds up and decreases your market share if you aren’t paying close attention.

Start by protecting your business against fraudulent brands and strike back against fake sellers. Then, it’s a brand establishment swarm from there. Get ahead of your competition by honing in on your SEO strategy, investing in paid advertising, and leveraging the power of social media to help you build a credible storefront, product listings, and customer experience.

 

Trend #5: Sustainability

You knew this was coming–and it should be no great shock. Sustainability isn’t just a trend for environmentalists; it’s now a key concern in consumer purchases and daily activity choices. Most consumers want to practice more sustainable practices, and who they shop with is becoming increasingly specific. For example, 82% of shoppers want brands to adopt sustainable and people-first practices. Over 83% of consumers felt it was “extremely important” for brands to develop products that can be reused or recycled, with more than half saying they’d be willing to pay more (up and above 10%) for sustainable options to conventional products.

It’s unmistakable that brands who have a strong sustainability initiative—and can support it with products that create positive environmental impact–willl be well positioned for victory in 2023 and beyond.

What Does This Mean for FBA Sellers?

By 2023, Amazon device packaging will be 100 percent curbside recyclable. They also plan to incorporate recycled materials into new Amazon devices produced. Amazon has high goals with expectations for complete sustainability by 2023 and to have 80% of its energy use come from renewable resources. This positions Amazon as an even more desirable merchant for consumers to rely on for sustainable practices, presenting FBA sellers the opportunity to make their products climate pledge friendly.

In addition, FBA sellers can be more sustainable by using eco-friendly packaging materials made from natural raw materials (biofuels and plant material) or alternative renewable, recyclable, and carbon-neutral products. Sellers should also be reducing unnecessary package waste where possible through package optimization. It’s also crucial for sellers to list eco-friendly methods on product listings to help customers make informed decisions.

 

2023 FBA Seller Changes

Effective Jan 17, 2023: Amazon’s new FBA fees will go into effect. The good news is referral fees will remain unchanged, and Amazon will remove the fuel & inflation surcharges. But other fulfillment service fees will see gradual rate increases next year. Here’s a quick overview of what’s to come for Amazon FBA sellers in 2023:

  • Overall, average outbound fees will increase by $0.22.
  • Removal and disposal fees will increase by an average of 92% (For ex. To remove a standard size 0.5+ to 1.0 lb package is currently priced at $0.75 for 2022. In Jan 2023, this price spikes to $1.46— a 94.67% increase. Liquidation fees will remain unchanged.
Size TierShipping WeightRemoval or Disposal Fee Per Unit (Before 1/17/23)Removal or Disposal Fee Per Unit (On or After 1/17/23)% Increase
Standard-Size0 to 0.5 lb$0.52$0.9786.54%
0.5+ to 1.0 lb$0.75$1.4694.67%
1.0+ to 2.0 lb$1.14$2.2092.98%
More than 2.0 lb$1.51 + $0.63/lb above 2 lb$2.83 + $1.06/lb above 2 lb82.63%
Oversize & Special Handling Items*0 to 1.0 lb$1.50$3.12108.00%
1.0+ to 2.0 lb$1.96$4.07107.65%
2.0+ to 4.0 lb$2.89$5.5692.39%
4.0+ to 10.0 lb$5.05$9.4386.73%
More than 10.0 lb$7.25 + $0.63/lb above 10 lb$13.05 + $1.06/lb above 10 lb79.06%
Average Increase = 92.29%
  • Apparel and Shoe categories will see a decrease in fees by an average of $0.22 per return.
  • The FBA small and lightweight program will be extended to increase item pricing for eligible products from $10 or less to $12 or less.
  • Plus, Amazon will reduce fees for the U.S. FBA New Selection program.
  • Peak storage fees from Oct to Dec from non-sortable networks will increase by $0.20 per cubic foot while sortable networks remain unchanged.

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+ 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 WeightPeak Fulfillment 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+ 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

^Table Footnote:

  1. Peak fulfillment fees in 2022 apply from October 15, 2022 to January 14, 2022. Non-peak fulfillment fees apply from January 15/16, 2023. Fees include a 5% fuel and inflation surcharge
  2. Starting January 17, 2023 fees without a separate 5% fuel and inflation surcharge will apply.
  3. For detailed definitions of oversize size tiers, go to product size tiers.

Amazon Inventory rules and service regulations are also getting a makeover. Here’s some recent changes:

Beginning February 1, 2023, off-peak monthly inventory storage fees (Jan-Sept) are increasing by $0.04 per cubic foot for standard-size products and $0.03 per cubic foot for oversize products. Amazon states that this change will be reflected in March 2023 for storage that occurs in February 2023.

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

Starting April 1, 2023: Amazon is implementing a new Storage Utilization Surcharge for FBA sellers ( based on your storage utilization ratio) that have high volumes of inventory stored in fulfillment centers relevant to the volume of their weekly performance/sales.

  • Inventory between 271-365 days will be subjected to a higher surcharge.
  • There will be a new Aged Inventory Surcharge for inventory stored between 180-270 days. Excluding some categories. Surcharges will continue on storage held over 365 days.

Off-Peak Period (January-September), Starting April 1, 2023

Storage Utilization RatioStandard-Size: Base Monthly Storage FeeStandard-Size: Storage Utilization SurchargeStandard-Size: Total Monthly Storage FeeOversize: Base Monthly Storage FeeOversize: Storage Utilization Surcharge Oversize: Total Monthly Storage Fee
Below 26 weeks$0.87 per cubic footN/A$0.87 per cubic foot$0.56 per cubic footN/A$0.56 per cubic foot
26-39 weeks$0.87 per cubic foot$0.69 per cubic foot$1.56 per cubic foot$0.56 per cubic foot$0.46 per cubic foot$1.02 per cubic foot
39+ weeks$0.87 per cubic foot$0.94 per cubic foot$1.81 per cubic foot$0.56 per cubic foot$0.63 per cubic foot$1.19 per cubic foot
New sellers, sellers with individual selling accounts, and sellers with less than 25 cubic feet daily volume$0.87 per cubic footN/A$0.87 per cubic foot$0.56 per cubic footN/A$0.56 per cubic foot

Peak Period (October-December)

Storage Utilization RatioStandard-Size: Base Monthly Storage FeeStandard-Size: Storage Utilization SurchargeStandard-Size: Total Monthly Storage FeeOversize: Base Monthly Storage FeeOversize: Storage Utilization Surcharge Oversize: Total Monthly Storage Fee
Below 26 weeks$2.40 per cubic footN/A$2.40 per cubic foot$1.40 per cubic footN/A$1.40 per cubic foot
26-39 weeks$2.40 per cubic foot$0.69 per cubic foot$3.09 per cubic foot$1.40 per cubic foot$0.46 per cubic foot$1.86 per cubic foot
39+ weeks$2.40 per cubic foot$0.94 per cubic foot$3.34 per cubic foot$1.40 per cubic foot$0.63 per cubic foot$2.03 per cubic foot
New sellers, sellers with individual selling accounts, and sellers with less than 25 cubic feet daily volume$2.40 per cubic footN/A$2.40 per cubic foot$1.40 per cubic footN/A$1.40 per cubic foot

What Can FBA Sellers Do to Stay Profitable?

Use these Amazon trends for 2023 to keep your team ahead and stay there. Leverage your Amazon data to make informed and empowered decisions with Sifted Marketplace Intelligence.

What adjustments does your team need to make to maintain profitability while paying higher fulfillment fees to Amazon in 2023? How will you optimize your operations to get and stay ahead in this competitive landscape?

If those are questions you can’t immediately answer, find out how thousands of other sellers are with Sifted Marketplace Intelligence.

Topics: Amazon, Shipping Trends
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