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Amazon will be ending its Small and Light program on August 29
Today, I would like to bring to your attention a noteworthy announcement from Amazon that may have implications for your business. The announcement pertains to the Fulfillment by Amazon (FBA) Small and Light program in the United States. For some time now, this program has allowed you to enroll low-price, small, and lightweight products, availing you of lower FBA rates. While it provided cost benefits, it did come with the trade-off of slower shipping speeds compared to the standard FBA.
Based on seller feedback, Amazon has decided to make some adjustments. Starting from August 29, 2023, they will introduce lower FBA rates for all items priced below $10 under the standard FBA program. This change is aimed at providing you with a simplified and cost-effective option for your low-priced selection while maintaining the speedy FBA delivery that your customers appreciate.
It is important to note that eligible items will automatically receive the new low-price rates, which is a positive aspect, especially as we approach the 2023 holiday season. During this festive period, these eligible items will be exempt from the peak fulfillment fees that will apply from October 15, 2023, through January 14, 2024.
However, with the introduction of these new rates, Amazon has decided to close the Small and Light program in the US, effective August 29, 2023. Therefore, after July 17, 2023, it will no longer be possible to enroll new products into the program.
From a financial standpoint, the upcoming FBA rates for low-price products will be, on average, $0.77 lower per item compared to the current FBA rates for these products. If your products were previously enrolled in Small and Light and are priced below $10, this change may result in approximately $0.30 more per item compared to Small and Light, but it will also mean faster FBA fulfillment speeds. On the other hand, if your products were not part of the Small and Light program and are priced below $10, this change could mean saving approximately $0.77 per item while still enjoying the quick FBA fulfillment we are accustomed to. For items priced above $10, the standard FBA rates and shipping speeds will apply automatically.
To ease the transition, Amazon is providing a two-month period until the new lower FBA rates for low-price products take effect and the Small and Light program closes. This gives you the opportunity to review your product offerings, assess your inventory status, and adapt accordingly.
For the latest FBA rates, you can find more information on the Low-Price FBA fees page. Additionally, for more insights into the current FBA rates, the FBA fulfillment fee page is a valuable resource.
Here you can read a copy of the e-mail announcement from Amazon regarding the matter:
| Low-Price FBA rates to replace Small and Light on August 29 Hello, For a number of years, the Fulfillment by Amazon (FBA) Small and Light program has provided sellers with an option to enroll low-price, small, and light products into this program to receive lower FBA rates because the program provided slower shipping speeds than standard FBA. We have learned a great deal over the last few years, including how these lower fees have helped enable sellers to offer far more low-price selection to customers and how much customers value the continued improvements we have made in speed. As a result, we have decided to end the US FBA Small and Light program and instead lower the standard FBA rates for all low-price products. Starting August 29, 2023, US FBA will introduce these lower FBA rates for all items priced below $10. The new rates make it simpler for every seller to take advantage of lower fees on their low-priced selection, while providing the same, fast FBA delivery speeds that customers love. Any eligible items will automatically receive the low-price rates and will not be subject to 2023 holiday peak fulfillment fees that will apply from October 15, 2023, through January 14, 2024. With this change, we will close the Small and Light program in the US effective August 29, when the new low-price FBA rates go into effect. Until then, items enrolled in Small and Light will continue to have Small and Light rates applied. Enrollment of new products into the program will end after July 17. The new FBA rates for low-price products will be an average of $0.77 lower per item than the current FBA rates for these products. If your products were enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.30 more per item than with Small and Light, but your items will now ship with the faster FBA fulfillment speeds. If your products were not enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.77 less per item while continuing to enjoy the fast FBA fulfillment speeds you have been receiving. For items priced above $10, they will automatically have the standard FBA rates and shipping speeds applied. We understand that changes to programs and fees can affect your business. To help prepare for this change, you’ll have approximately two months until the new lower FBA rates for low-price products take effect and the Small and Light program closes. We recommend that you review your product offerings, check your inventory status, and review the FBA rates to assess any changes. To review the latest FBA rates, go to Low-Price FBA fees. For more information on the current FBA rates, go to FBA fulfillment fee. If you have questions, you can also reach out to Selling Partner Support. Thank you for using FBA as we strive to continue to improve this program and how it helps drive your business growth. The Fulfillment by Amazon team |
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