Amazon’s FBA Fuel and Inflation Surcharge: What It Costs You

Amazon has announced a new fuel and inflation surcharge for FBA. Starting April 28, 2022, it will add a 5% surcharge to FBA fulfillment fees in the US and Canada. Amazon says the surcharge is a response to rising fuel and inflation costs, and that it plans to review it as conditions change.

Here is what it means for your costs and what you can do about it.

What is changing

• A 5% surcharge on FBA fulfillment fees, the per unit fee for picking, packing and shipping orders.
• It applies to FBA orders in the US and Canada from April 28.
• It applies on top of the current fulfillment fees.

It does not change referral fees or storage fees directly.

What it costs

The surcharge is 5% of the fulfillment fee, not of your selling price. So the cost per unit is usually small. For a product with a $5.00 FBA fee, the surcharge adds about $0.25 per unit.

That sounds minor, but it adds up across thousands of units, and it comes on top of higher freight, product and ad costs this year.

How to work out your impact

1. Pull your FBA fulfillment fee per unit for each product.
2. Multiply by 5% to get the extra cost per unit.
3. Multiply by your expected monthly units.
4. Update your profit per unit and break-even ACoS.

Ways to offset it

Review packaging size

FBA fees are based on size and weight. If your product is just over a size tier boundary, trimming packaging could move it to a cheaper tier and save far more than the surcharge.

Bundle products

Selling a two-pack or a bundle means one fulfillment fee for more product. It can lower your fee per unit sold.

Adjust prices carefully

A small price increase can cover the surcharge. We shared how to do this safely in our post on raising prices during inflation.

Update ACoS targets

Your break-even ACoS falls slightly when fees rise. Update your targets so you are not overspending on ads. Our guide on ACoS targets by product explains how.

Cut ad waste

Often the fastest way to recover a few cents per unit is in your ad account. Add negatives for search terms with no sales and lower bids on keywords above target.

Keep an eye on what comes next

Amazon has said it will review the surcharge. Fees and costs are changing fast this year, so plan to recheck your margins every quarter.

The bottom line

The 5% FBA surcharge is small per unit but adds to an already expensive year. Recalculate your margins, look for packaging and bundle savings, and tighten your ads. If you want help finding savings in your account, request a free audit.

FAQs

When does the Amazon FBA fuel surcharge start?

The 5% fuel and inflation surcharge applies to FBA fulfillment fees in the US and Canada from April 28, 2022.

Is the surcharge 5% of my selling price?

No. It is 5% of the FBA fulfillment fee, so the cost per unit is usually small.

How can I reduce my FBA fees?

Check whether smaller packaging could move your product into a cheaper size tier, and consider bundles that spread one fee across more product.