{"id":64853,"date":"2020-03-12T09:01:46","date_gmt":"2020-03-12T08:01:46","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/?p=64853"},"modified":"2020-04-02T12:01:46","modified_gmt":"2020-04-02T10:01:46","slug":"increase-of-amazon-fulfilment-fees","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/increase-of-amazon-fulfilment-fees\/","title":{"rendered":"Amazon Sellers watch out: FBA Fees increased significantly &#8211; 1 April 2020"},"content":{"rendered":"\n<p>Amazon has increased fulfillment, removal order and referral fees on 1 April 2020. For some sellers, this might change quite a lot and deciding to start with Pan-European FBA could potentially save a lot of money \u2013 especially when selling standard size items and when selling with EFN.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/new-amazon-fba-fulfilment-fees-2020-1024x536.jpg\" alt=\"\" class=\"wp-image-65055\" srcset=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/new-amazon-fba-fulfilment-fees-2020-1024x536.jpg 1024w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/new-amazon-fba-fulfilment-fees-2020-300x157.jpg 300w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/new-amazon-fba-fulfilment-fees-2020-768x402.jpg 768w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/new-amazon-fba-fulfilment-fees-2020.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Why these\nnew fees for fulfilment?<\/h2>\n\n\n\n<p>So far, Amazon has already\ninvested <strong>more than $4 billion<\/strong> to expand its infrastructure, programmes,\nemployees, tools and services in 2020. The high costs were mainly due to the <strong>free\nOne-Day Delivery<\/strong> which was added to more than 6 million prime items. <\/p>\n\n\n\n<p>In addition, a <strong>new starting programme<\/strong> was introduced as well as an <strong>adjustment for fulfilment and other fees<\/strong>. We will take a closer look on the last aspect, the rising fees ins this article.<\/p>\n\n\n\n<p>As already mentioned, the changes came into force on&nbsp;<strong>April 1, 2020<\/strong> and are applicable in all European marketplaces.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How are the Amazon\nFBA fees going to change?<\/h2>\n\n\n\n<p>FBA fulfilment fees were adjusted for local FBA, <a href=\"https:\/\/hellotax.com\/blog\/amazon\/fba\/europe\/pan-eu\/\">Pan-European FBA<\/a> and the <a href=\"https:\/\/hellotax.com\/blog\/amazon\/fba\/europe\/efn\/\">European fulfilment Network (EFN)<\/a> in all countries with Amazon marketplaces. For <a href=\"https:\/\/hellotax.com\/blog\/amazon\/fba\/europe\/central-europe-program\/\">CEE<\/a> still the <strong>\u20ac0,50 reduction per unit<\/strong> is valid, calculated from the new fees. <\/p>\n\n\n\n<p>As you know, Amazon has marketplaces in the United Kingdom, Germany, France, Italy, and in Spain. Especially in Germany and the UK, the rise of the fees is quite significant, with <strong>increases of up to 15%<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Amazon FBA Fees increase significantly in 2020\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Q1tMYTeIw6M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>We created a <strong>calculation spreadsheet<\/strong> for all fees, all product sizes, all countries and all FBA programmes. This is not only super useful, but also, we don\u2019t have to include huge tables of different fees in this article. <\/p>\n\n\n\n<p>Simply use the Excel spreadsheet, to see how much you need to pay for fulfilment and when the hellotax service is already covered.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><a href=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/Fee-Calculator-EN-hellotax.xlsx\">&gt;&gt;&gt;Fulfilment Fee Calculator&lt;&lt;&lt;<\/a><\/h3>\n\n\n\n<p>Before you start calculating, let\u2019s take a look on how these changes affect the differently sized products, as the change of your current FBA programme makes sense especially when selling <strong>standard-sized products<\/strong> or when selling OVERSIZE products via EFN. Let\u2019s find out if you should take action.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Standard-size fulfilment fees<\/h3>\n\n\n\n<p>Fulfilment fees for standard-sized envelopes and parcels were increased on all Amazon marketplaces \u2013 with individual rises in each country (as there are currently individual fees as well) when we talk about <strong>local fulfilment<\/strong> and <strong>shipping with Pan-EU<\/strong>. The increases of <strong>EFN fees<\/strong> are, just like before, divided into two categories: <strong>UK and non-UK<\/strong>.<\/p>\n\n\n\n<p><strong>IMPORTANT<\/strong>: The increase in fees for standard-sized products not only varies from country to country, but also depends on the FBA service which is used! This means that Amazon sellers who sell standard-sized products should consider selling with the Pan-European Fulfilment Network (Pan-EU) instead of Amazon&#8217;s EFN or CEE program, <strong>as the fees for Pan-EU have increased comparatively little<\/strong>. More about that later.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"766\" height=\"259\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-standard-size.png\" alt=\"\" class=\"wp-image-64891\" srcset=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-standard-size.png 766w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-standard-size-300x101.png 300w\" sizes=\"(max-width: 766px) 100vw, 766px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">2. Oversize local fulfilment fees<\/h3>\n\n\n\n<p>When it comes to <strong>local<\/strong> fulfilment fees for OVERSIZE products, interestingly, these fees <strong>remained the same in Italy in France<\/strong>. However, in the UK, in Germany and Spain, the fees were increased as well.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: <em>Local\nfulfilment of standard oversize packages of 5,000g for example, the French\nfulfilment fee of \u20ac9,46 will stay at \u20ac9,46, while for the same package sold and\nshipped in Spain, the fee increases from \u20ac5,99 to \u20ac6,89. <\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Oversize EFN and Pan-European FBA fulfilment fees<\/h3>\n\n\n\n<p>When selling oversize products with <strong>EFN<\/strong>, the fulfilment fees for <strong>countries outside the UK<\/strong> did stay the same, the fees in the <strong>UK<\/strong> were increased a little bit. The <strong>fees for Pan-EU<\/strong> when selling oversize products were increased in Germany, the UK and in Spain \u2013 in Italy and France the fees stayed the same.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"772\" height=\"258\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-oversize.png\" alt=\"\" class=\"wp-image-64893\" srcset=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-oversize.png 772w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-oversize-300x100.png 300w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/table-savings-pan-eu-oversize-768x257.png 768w\" sizes=\"(max-width: 772px) 100vw, 772px\" \/><\/figure><\/div>\n\n\n\n<p>However, compared to the EFN fees for oversize products, the according Pan-EU fees are still way lower and therefore, a calculation for those products also makes sense.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What to do\nnow?<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\">Step\n1: Check the adjustments for your product(s).<\/h2>\n\n\n\n<p>As the product size is crucial<strong>,\nidentify your product\u2019s size tier<\/strong>, take its dimensions (in centimetres) and\nits shipping weight (in grams), and start your calculation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Product types and size\ntiers<\/h3>\n\n\n\n<p>To know\ninto which category your products belong, here are the Amazon definitions for\nstandard-size and oversize. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Standard-size<\/strong>: <em>A packaged unit that weighs 12 kg or less,\nmeasures 45 cm or less on its longest side, 34 cm or less on its median side\nand 26 cm or less on its shortest side.<\/em><\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Oversize<\/strong>: <em>A packaged unit that exceeds any of the following\nmeasurements is oversize: 12 kg, 45 cm on its longest side, 34 cm on its median\nside or 26 cm on its shortest side.<\/em><\/li><\/ul>\n\n\n\n<p>The shipping weight is equal to the weight of your\nunit(s) plus the packaging weight. <a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/201105770\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to see\nthe official Amazon regulations for product size tiers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 2: Think about changing\nyour current FBA programme<\/h2>\n\n\n\n<p>When you are selling STANDARD-SIZE products, <strong>EFN and CEE sellers have to deal with the biggest increases <\/strong>for fulfilment fees. Pan-EU is of course connected with higher administrative tasks but as for this FBA service the increase is not that significant, it pays off rather quickly.<\/p>\n\n\n\n<p>If you mainly sell oversize products, of course you need to recalculate you pricing but at least changing your current FBA service is not really relevant.<\/p>\n\n\n<div class=\"cta-shortcode cta-shortcode-normal \"><div class=\"cta-image\"><figure><img decoding=\"async\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2019\/10\/Samer.jpg\" alt=\"\"><\/figure><\/div><div class=\"cta-content\"><h3 class=\"font600\">Book a free consultation<\/h3><p>Our VAT experts are happy to help you. Book a free consultation today!<\/p>\n<div class=\"button-container\"><a href=\"https:\/\/hellotax.com\/contact-us?button=blog\" class=\"button button-secondary uppercase\">Free consultation<\/a><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Why Pan-EU can\nbe worth it<\/h2>\n\n\n\n<p>We already spoke about that going for Pan-EU could really save a lot of\nmoney, mainly when selling standard-sized items. Let\u2019s make it a bit clearer\nwith an example:<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong><em>: A parcel of 1000g shipped from Germany via EFN will cost \u20ac7.23 (+\u20ac0.5 if you\u2019re not in the CEE programme) in fulfilment fees, while the same package sent from a German warehouse when using Pan-EU costs \u201conly\u201d \u20ac3.22. <\/em>That\u2019s a <strong>difference of 4.01\u20ac PER UNIT<\/strong>!<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/pan-european-fba-pan-eu-1024x536.jpg\" alt=\"\" class=\"wp-image-64865\" srcset=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/pan-european-fba-pan-eu-1024x536.jpg 1024w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/pan-european-fba-pan-eu-300x157.jpg 300w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/pan-european-fba-pan-eu-768x402.jpg 768w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/03\/pan-european-fba-pan-eu.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>If you choose Pan-EU, we can\ntake care of all <strong>registrations<\/strong> and <strong>VAT returns<\/strong>, <strong>EC sales lists<\/strong>,\netc. in all Pan-EU countries. That means countries with <a href=\"https:\/\/hellotax.com\/blog\/amazon\/warehouse\/\">Amazon warehouses<\/a>: Germany, France,\nItaly, Spain, United Kingdom, Poland and the Czech Republic. <\/p>\n\n\n\n<p>For example, if you are now\nselling with EFN and you are only registered in one country, then Pan-EU means\nVAT registrations, returns, EC sales lists, etc. in 6 additional countries. <\/p>\n\n\n\n<p>Now you might think that this\nwill be really expensive and that the savings from the lower fees are already\ngone again. But we\ncan reassure you&#8230; that&#8217;s not the case!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Just do the\nmath<\/strong><strong><\/strong><\/h2>\n\n\n\n<p>We offer 2 different\nsubscriptions <a href=\"https:\/\/hellotax.com\/pricing\/\">on our pricing page<\/a>:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Yearly\nSubscription:<\/strong><\/li><\/ol>\n\n\n\n<p>FREE VAT registrations in all\nPan-EU countries if you book our service for one year \u2013 you will only have to\npay the monthly price for the ongoing VAT service. That means \u20ac99 per\ncountry\/month for our VAT service and \u20ac0 for VAT registrations.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Monthly\nSubscription:<\/strong><\/li><\/ul>\n\n\n\n<p>If you decide to go with the monthly subscription, we offer (EXCLUSIVELY THIS MONTH!) a 50% discount for each registration (so 150\u20ac instead of \u20ac300 \u2013 this is a one-time cost) and the VAT service on a monthly basis costs \u20ac119 per country\/month.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">So how does this save you money?<\/h2>\n\n\n\n<p>Let\u2019s assume you add to your one country subscription, the yearly subscription for the remaining <strong>6 Pan-EU countries<\/strong> which costs <strong>594\u20ac\/month<\/strong> \u2013 so you will then be registered in all EU countries with Amazon warehousesand we take care of all VAT-related tasks.<\/p>\n\n\n\n<p>Continuing the example with\nthe saving of about <strong>\u20ac4 per unit<\/strong>, when selling <strong>150 units per month, <\/strong>our\nservice is already covered.<\/p>\n\n\n\n<p>When you want to give it a try\nfirst and start with the monthly subscription, the monthly costs for <strong>6\ncountries<\/strong> would be <strong>\u20ac714<\/strong> and it is covered when you sell <strong>180 units\nper month<\/strong>.*<\/p>\n\n\n\n<p>For each and every unit you sell above those minimum turnovers, you already save money!<\/p>\n\n\n\n<p>On top of that, you become a Pan-EU seller which brings a lot of other advantages. Pan-EU is not only the FBA programme with the <strong>highest potential turnover<\/strong>, you also have <strong>the fastest delivery times<\/strong>, <strong>highest visibility<\/strong> on Amazon and \u2013 and this will be a biggest plus from next month on \u2013 the <strong>lowest fulfilment fees<\/strong>!<\/p>\n\n\n\n<p class=\"has-text-align-left\" style=\"font-size:14px\">*This does not include the one-time registration fees. But those are comparatively low and as already mentioned, there is even a 50% discount this month. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Not only Fees for fulfilment were changed<\/h2>\n\n\n\n<p>Despite the fulfilment fees for Amazon FBA, there are also other fees which were adjusted on 1 April 2020. These fees are:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>FBA minimum long-term storage fees<\/li><li>FBA removal order fees<\/li><\/ol>\n\n\n\n<p><a href=\"https:\/\/hellotax.com\/blog\/new-amazon-fees-for-storage-and-removal-orders\/\">Click here <\/a>to read more about this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon has increased fulfillment, removal order and referral fees on 1 April 2020. For some sellers, this might change quite a lot and deciding to start with Pan-European FBA could potentially save a lot of money \u2013 especially when selling standard size items and when selling with EFN. Why these new fees for fulfilment? So [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":65055,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5593],"tags":[],"class_list":{"0":"post-64853","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-vat-compliance","8":"entry"},"acf":[],"modified_by":"Niki Stanev","_links":{"self":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/64853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/comments?post=64853"}],"version-history":[{"count":0,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/64853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media\/65055"}],"wp:attachment":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media?parent=64853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/categories?post=64853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/tags?post=64853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}