Fee Changes

Changes in Amazon.in Fees effective December 1, 2020

Dear Seller,

We appreciate and thank you for your continued participation as a seller on Amazon.in. Over the past few months, Amazon.in has taken several initiatives to help its seller community of more than 7 lakh sellers to mitigate the challenges due to the pandemic, and to get their businesses back on track. These include Covid-19 health insurance (offered by Acko in partnership with Amazon), fee waivers on inventory storage fees and 50% waiver on ‘Sell on Amazon’ fees for small sellers, and deferring the marketplace fee revisions to December 2020 to help sellers leverage the sale season and grow your business.

Today, we’re launching our revised fee structure along with the Amazon STEP (Click here or visit amazon.in/step to learn more), a new initiative aimed at helping you grow and be successful on Amazon.in. STEP is a performance-based benefits program which will simplify your experience by providing you customized and actionable recommendations, helping you improve key customer experience metrics and in turn, your growth.

We’ve designed fee changes incorporating your feedback & to help you sustain your business growth and are excited to announce fee benefits linked to STEP. Following are the highlights-
  • • Reduced FC Closing Fees: We understand that the cost of operations may vary significantly by price in some categories and to enable you, we’re reducing FC closing fee charges for certain categories in low price range
  • • Shipment based FBA Weight Handling Fee: To provide benefits for shipping in multiple quantities, we’re changing the FBA weight handling fee charge computation from unit based charge to shipment based charges.
  • • Waivers on Weight Handling Fee & Lightning Deal Fee as STEP benefit: As you improve your performance, you unlock weight handling fee & lightning deal fee waiver as benefits by moving into ‘Standard’, ‘Advanced’, ‘Premium’ and more levels
  • • We are also introducing FC disposals at no additional charge as part of this change.
  • • We continue to offer Weight handling fee & Pick and Pack fee at no additional cost for Standard sized items priced higher than INR 20,000
Revisions effective from 1st December 2020:
  • • Selling on Amazon Referral Fee: Amazon.in has revised referral fees across 60 product categories including reduction in 15 product categories, refer Table 1 below.
    • Note: Please ensure that your ASIN is subcategorized correctly by mapping it to the right browse node. You can refer to the help page on Seller Central for further details.
  • • Selling on Amazon Closing Fee: Fixed Closing Fee structure has been revised for certain channels. We have introduced lower closing fees for select categories which are shipped through Amazon FCs in < INR 500 price range. Please refer Table 2 and Table 3 below for the revised fixed closing fee.
  • • Lightning Deal Fee: Sellers in ‘Standard’, ‘Advanced’ and ‘Premium’ levels will receive waivers up to INR 33 on Lightning Deal Fees. Please refer Table 8 for Lightning Deal fee details.
  • • Fulfilment by Amazon (FBA):
    • • FBA Weight Handling fee:
      • o Based on seller feedback we have changed the weight handling fee computation from units to shipments & will charge the shipment based on the aggregated billing weight of all units in the shipment. This will encourage you to ship more & save more.
      • o Irrespective of scale weight, weight handling fee will be charged based on billing weight (higher of scale weight or volumetric weight). We understand that there are certain categories, by nature of their packaging tend to have disproportionate volumetric weight. For such categories, if the scale weight is less than 1 kg and volumetric weight is more than 2 times scale weight, then the billing weight would be capped at 2 times the scale weight.
      • o We have also simplified the FBA weight handling fee into 2 size bands - Standard & Heavy Bulky.
      • o Sellers in ‘Standard’, ‘Advanced’ and ‘Premium’ levels will receive waivers up to INR 12 on weight handling fees. Please refer Table 6 for the FBA weight handling fee details.
    • • FBA Pick and Pack Fee: As we simplify our size bands to 2 bands, FBA Pick and Pack fee for Oversize items will see a reduction from INR 25 per unit to INR 10 per unit. There are no changes to the FBA pick and pack fee for Standard & Heavy Bulky items. Please refer Table 4 below for revised FBA Pick and Pack Fee.
    • • Zero Fulfillment Fee for Shipments over INR 20,000: To taste the success of FBA at no additional cost, we will continue to offer Zero fulfillment Fee (Weight handling Fee & Pick & Pack Fee) for all Standard-size shipments priced over INR 20,000.
    • • FBA Removal fee: FBA Removal fee for Oversize items will see a reduction from INR 25 per unit to INR 10 per unit. We have revised self-pick up, standard shipping and expedited shipping charges. Please refer Table 9 below for revised FBA Removal fee.
    • • FBA Disposal Fee: Amazon has introduced no-cost disposal to all sellers who operate from Amazon FCs.
    • • FBA Storage Fee: There will be no change to the FBA storage fee. We will continue to offer FBA Storage Fee at INR 20 per cubic foot per month.
    • • FBA Long Term Storage Fee (LTSF): We are introducing minimum LTSF fee per unit as part of this revision. This new charge will be applicable from Jan’21 LTSF charge cycle. Please refer Table 10 below for revised Long term Storage fee.
  • • Easy Ship (ES):
    • • Easy Ship Weight Handling Fee: Easy Ship weight handling fee has been simplified to two size bands – Standard and Heavy & Bulky and we have also revised the fees. Sellers in ‘Standard’, ‘Advanced’ and ‘Premium’ levels will receive waivers up to INR 12 on weight handling fees. Please refer Table 6 for Easy Ship weight handling fees.
    Note: All the fee types listed above are displayed excluding Goods and Services Tax. We will apply 18% Goods and Services Tax (GST) to all fees displayed above.

    About Amazon STEP

    STEP is a performance-based benefits program which will simplify your experience by providing you customized and actionable recommendations, helping you improve key customer experience metrics and in turn, your growth. Your performance on key metrics and the associated benefits are transparent, easy to understand and applicable to sellers of all sizes and tenure on Amazon.in. As you improve your performance on key metrics like cancellation rate, late dispatch rate and return rate, among others, you unlock benefits by moving through ‘Basic’, ‘Standard’, ‘Advanced’, ‘Premium’ levels & more. These benefits include fee waivers, faster disbursement cycles, priority seller support and free world-class account management.

    Starting 1 December 2020, sellers on Amazon.in will enjoy ‘Standard’ benefits up to 31 March 2021, and effective 1 April 2021 you will be eligible for ‘Basic’, 'Standard', ‘Advanced’ or ‘Premium’ benefits based on your performance from 1 January to 31 March 2021. These benefits include waivers on Weight Handling Fee and Lightning Deal Fee, which are detailed in Tables 6, 7 and 8 below. You will get an opportunity to upgrade your benefits based on your performance every quarter, while sellers with consistent performance at ‘Premium’ level have an opportunity to unlock even more benefits. For more information, please visit the STEP help page.
    Please feel free to write to in-fee-feedback@amazon.com to provide your feedback on the new changes.

    Regards,

    Amazon Services
Table 1: Category Level Referral Fee
Table 2: Closing fee changes for FBA
Table 3: Closing fee changes for Easy Ship, Easy Ship Prime and MFN
Table 4: FBA Pick and Pack fees
Table 5: FBA Disposal fee
Table 6: Channel and STEP level wise weight handling fees
Table 7: Examples to elucidate weight handling fee changes
For a seller in ‘Standard’ level, shipping locally, the following table showcases examples which will help you understand the change in weight handling fees.
For a seller who moves from Standard level to Advanced level on 1st April 2021, the following examples showcase the weight handling fee benefits.
Table 8: STEP – Level wise Lightning Deal fee rate cards
Table 9: FBA Removal fees
Table 10: FBA Long Term Storage Fees
Please feel free to write to in-fee-feedback@amazon.com to provide your feedback on the new changes.