Amazon’s 2024 Fee Changes: Inbound Placement and Low Inventory Fees Explained

Amazon has announced its fee changes for 2024, and they are among the biggest in years. Some fees are going down, but two new fees will change how sellers plan inventory: an inbound placement fee and a low inventory level fee. There is also a new fee for products with unusually high return rates.

Here is a plain summary of what is changing and how to prepare. Check Seller Central for exact rates for your products.

Fees going down

• Lower referral fees on lower priced apparel. Amazon is cutting referral fees for clothing under certain price points.
• Lower FBA fulfillment fees on many standard size products in the US.

Good news, but the new fees below may cancel this out for some sellers.

The inbound placement fee

Today, Amazon often splits your shipments across several warehouses. From early 2024, you will choose how your inbound shipments are split, and pay a placement fee based on that choice.

• Sending to more locations, as Amazon recommends, usually means a lower or no placement fee.
• Sending everything to one location means a higher fee per unit.

The fee depends on size, weight and the option you choose.

The low inventory level fee

From spring 2024, Amazon plans to charge a fee on standard size products when your inventory is consistently low compared with your sales. The idea is that low stock makes it harder for Amazon to deliver fast.

• The fee is charged per unit shipped.
• It is based on your days of supply compared with recent demand.
• Some products, such as new listings and small sellers, may be exempt.

The returns processing fee

Amazon also plans a fee for products with return rates well above the threshold for their category. Most products will not be affected, but some categories with high returns should watch closely.

How to prepare

1. Recalculate margins for every product using the new fees.
2. Plan shipments to balance placement fees against your own shipping costs. Splitting shipments may cost less overall.
3. Avoid running low. Keep enough stock in FBA to stay above the low inventory threshold, within your capacity limits. See our post on capacity limits.
4. Use a 3PL buffer to send regular, smaller shipments.
5. Tackle returns. Review return reasons and fix listings that set the wrong expectations.
6. Update ACoS targets where margins change. Our guide on ACoS targets by product explains how.

The bottom line

Amazon’s 2024 changes reward sellers who keep steady stock, split shipments sensibly and keep returns low. Recalculate your margins now and plan your first shipments of 2024 with the new fees in mind. If you want help modeling the impact on your catalog, request a free audit or see our catalog and account operations service.

FAQs

What is Amazon’s inbound placement fee?

It is a new fee from early 2024 based on how your inbound shipments are split across warehouses. Sending to fewer locations usually costs more.

What is the low inventory level fee?

It is a planned fee on standard size products when inventory stays low compared with sales, charged per unit shipped.

Are any Amazon fees going down in 2024?

Yes. Amazon is lowering referral fees on some lower priced apparel and cutting FBA fulfillment fees on many standard size products.