Q4 Must-Know News: Peak Fees, Capacity Limits and Deadlines

As the 2024 holiday season approaches, Amazon has announced important updates for sellers. Here’s what you need to know about the new holiday peak fulfillment fees and the timelines.

2024 Holiday Peak Fulfillment Fees

October 15, 2024, through January 14, 2025, Amazon will implement a holiday peak fulfillment fee for Fulfillment by Amazon (FBA) sellers. This fee will apply to items sold in the US and Canada to cover the increased costs of fulfilling orders during the busy holiday season:

• Small Standard Items: An average increase of $0.20 per item.
• Large Standard Items: An average increase of $0.30 per item.
• Oversize Items: An average increase of $1.00 per item.

Preparing for Peak Season: FBA Capacity Limits & Receiving

To ensure your products are ready for the holiday rush, follow these key timelines and changes:

• Inventory Deadlines: Send your FBA inventory to fulfillment centers in August and September. Inventory must arrive by October 19, 2024, to guarantee it's Prime badge-ready by Black Friday.‍
• Capacity Limits: Amazon warns may see a decrease in estimated capacity limits for October and November while indicating the limits will still allow enough storage for six months of inventory, according, of course, to their calculations. Use the Capacity Monitor tool to stay updated on your limits. If in need of more space, get your reservation bid in as early as possible to lock in a lower rate. ‍
• Receiving Focused: Amazon's fulfillment centers will prioritize receiving inventory in September and October to ensure products are available for the holiday season. Limited slots will be available for shipments in November and December as the focus shifts to processing customer orders.

Key Dates and Tools: Peak Readiness Playbook

To help plan ahead, keep these key dates in mind:

• June 11: Deal sourcing begins for Black Friday and Cyber Monday.
• August 9: Deal sourcing ends for Prime Big Deal Days.
• September 6: Deal sourcing ends for Black Friday and Cyber Monday.
• October 19: Inventory must arrive to guarantee Prime badge-ready by Black Friday.
• November 21 to December 2: Black Friday and Cyber Monday events.

Some Amazon-Recommended Resources:

• Capacity Monitor: Track your FBA inventory capacity.
• Capacity Manager: Request extra FBA capacity to ensure you stay in stock.
• Amazon Warehousing and Distribution (AWD): Store bulk inventory with AWD for automatic replenishment based on demand.
• Box-Level Inventory Placement: Improve product distribution across Amazon’s fulfillment network.
• FBA Inventory Report: This shows current inventory levels and recommended minimum stock.

Check out the FBA Peak Readiness playbook for more information.