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On August 15, 2023, Amazon announced that they will once again be adding a per-unit holiday surcharge to third-party merchants using US and Canada Fulfillment By Amazon (FBA) services. In an announcement titled 2023 Holiday Peak Fulfillment Fee by Amazon, the company explained the factors leading to this decision.
"This seasonal fee is similar to those charged by other major carriers, and covers increased fulfillment and transportation operating costs during the busy holiday shopping season."
For Amazon sellers, this translates to heightened importance of getting ahead of margins, so they can increase profits and outperform their competitors.
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What is the Amazon Holiday Peak Fulfillment Fee?
As Amazon expert Chelsea Cohen noted, "the only thing certain in this life are death, taxes, and Amazon fees."
The Holiday Peak Fulfillment Fee rates are unchanged from 2022 for US and Canada FBA. These fees will run from from October 15, 2023, to January 14, 2024.
This means that every purchase for Halloween, Thanksgiving, Black Friday, Cyber Monday, Christmas, and New Year - including Amazon's newly announced Prime Big Day Deals- will be increased by an average of USD $0.35 per item sold, based on size and weight.
An additional 35 cents per item may sound minimal, but is quite serious when considered in context. For one, this surcharge is added on top of all other FBA fees, including peak holiday storage fees of $2.40/cubic foot. Additionally, sellers of low-margin and high-volume products may lose a significant portion of their profits
Competing with Amazon’s “Fee Stack”
In a recent Facebook post, SoStocked cofounder Chelsea Cohen referred to Amazon’s increasing fees as the “Amazon Fee Stack.” In 2022 alone, Amazon increased fees for:
As Q4 approaches, the stakes are high, and for some sellers, the holiday season could transform into a risky venture. For Amazon sellers, a prudent approach to storage, fulfillment, and fees can make all the difference in ensuring a successful and profitable holiday season.
Want to learn more about how you can stay ahead of Amazon's increasing fees? Download our FREE Attack of the Fee Stack whitepaper here.
