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What Are Low-Price FBA Rates?
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This guide will help you get started, understand the basics of Amazon selling, and explain in simple words how it all works.
Recently, Amazon announced that it would end its FBA Small and Light program. The program, which offered lower fulfillment fees for small, lightweight items, will be replaced by Low-Price FBA fees.
Amazon said the move is intended to simplify the selling process for sellers of low-priced items. The new option will also offer the fast FBA delivery speeds that customers prefer.
In this post, we will discuss what products are eligible for the Low-Price FBA and what will be the new rates.
Related: Seller Assistant Extension Review
Seller Assistant — the Ultimate Tool for Amazon Online Arbitrage
What Are Low-Price FBA Fees?
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Low-Price FBA fees are the new rates introduced by Amazon to replace FBA Small and Light program. According to Amazon, the new Low-Price FBA rates will provide a better value for sellers of low-priced items.
The FBA Small and Light program was closed on August 29, 2023. The program offered lower fulfillment fees for small, lightweight items. It will be substituted by Low-Price FBA rates, which will be available for all items priced below $10.
Certain items that were enrolled in the FBA Small and Light program will see a slight increase in cost per item under the new rates. However, they will benefit from faster shipping speeds. The shipping speed for these products will match the standard FBA orders.
Sellers of low-priced items that were not previously enrolled in the FBA Small and Light program will see a significant decrease in their fulfillment costs under the new rates.
Related: Amazon FBA Small and Light Program: Everything to Know
Key points to remember about Low-Price FBA fees
The table below summarizes the essential facts about Low-Price FBA fees.
Note. The transition to Low-Price FBA Fees will apply to the US Small and Light program.
What Items Are Eligible for Low-Price FBA Fees?
The new fees will automatically apply to all products priced below $10.
The inventory previously enrolled in Small and Light and priced between $10-12, which is not covered by the new rates, will automatically get the standard FBA rates and shipping speed.
Note. Restricted items, such as adult, hazmat, and temperature-sensitive products priced below $10, will also be charged according to Low-Price FBA rates.
What Are Low-Price FBA Rates?
On average, the Low-Price FBA rates per unit will be $0.77 lower than the standard FBA fees. However, compared to the Small and Light program, the average fee per item will be $0.30 more with the Low-Price FBA fees. On the other hand, that will be compensated by standard FBA delivery speed.
Low-Price FBA rates
You can find the detailed Low-Price FBA rates breakdown in the table below.
Note. Low-Price FBA rates apply to fulfillment fees only. All other Amazon fees remain the same.
What Will Happen to the FBA Small and Light Program?
Amazon will close the FBA Small and Light program on August 29, 2023. Instead, they will introduce Low-Price FBA rates for the low-priced inventory. You can’t enroll any new products in FBA Small and Light from July 18, 2023.
All inventory eligible for the new program will automatically get new rates. This inventory will not be charged peak fulfillment fees in 2023.
The Small and Light inventory will be charged the corresponding fees until the program closure on August 28.
Is it necessary to remove the SKUs from Small and Light?
Amazon will enroll all inventory eligible for Low-Price FBA automatically. There’s no need for you to take any action.
If your SKUs are not covered by the new rates (the items priced between $10-12), they will still be eligible for FBA. The inventory will be linked to the SKU and will not become stranded.
Final Thoughts
In conclusion, Low-Price FBA rates are a new set of fulfillment fees that are available for all items priced below $10. They are an average of $0.77 lower per item than the current FBA rates for these products.
If you sell low-priced items on Amazon, you should be aware of these new rates and how they will impact your bottom line. You can use Seller Assistant’s FBM&FBA profit calculator to quickly and accurately calculate all your Amazon fees.
Seller Assistant is an all-in-one product sourcing software offering all the features vital for product sourcing. It combines three extensions: Seller Assistant Extension, IP Alert, and VPN by Seller Assistant, tools: Price List Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, and other features that help quickly find high-profit deals. Seller Assistant also offers integration with Zapier allowing to create custom product sourcing workflows.
