Amazon Cancels FBA Small and Light Program, Resulting in Higher Fees After August 29

Amazon announced that on August 29, 2023, the Fulfillment by Amazon (FBA) Small and Light program in the United States will be discontinued.

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The decision to end the program comes as a result of valuable insights gained over the years, highlighting the benefits of lower fees and improved shipping speeds for sellers and customers alike. Instead, Amazon will introduce new lower FBA rates for all low-price products, starting on August 29, 2023.

Under the revised FBA rates, all items priced below $10 will qualify for reduced fees, simplifying the process for sellers to offer low-priced selections while maintaining the fast Amazon delivery speeds that customers have come to appreciate.

Eligible items will automatically receive the low-price rates and will not be subject to 2023 holiday peak fulfillment fees, applicable from October 15, 2023, to January 14, 2024.

This change signifies a shift in Amazon’s approach, aligning with seller and customer preferences. The Small and Light program will be closed simultaneously with the introduction of the new low-price FBA rates, effective August 29, 2023.

Items currently enrolled in the program will continue to benefit from Small and Light rates until this date. However, the enrollment of new products into the program will no longer be accepted after July 17.

Sellers previously enrolled in the Small and Light program with items priced below $10 will experience a slight increase of approximately $0.30 per item; however, they will now benefit from faster FBA fulfillment speeds.

Conversely, sellers whose products were not enrolled in Small and Light and are priced below $10 will enjoy a reduction of approximately $0.77 per item while maintaining the expedited FBA fulfillment speeds.

Standard FBA rates and shipping speeds will automatically apply to items priced above $10.

Impacted Amazon Sellers Should Prepare Now

Amazon said they understand that program and fee changes can impact businesses. To facilitate a smooth transition, sellers will have approximately two months to prepare before the new lower FBA rates for low-price products take effect and the Small and Light program ceases operations.

Amazon recommends sellers review their product offerings, assess inventory status, and familiarize themselves with the updated FBA rates to adapt accordingly.

For more information and detailed guidance on these changes, sellers can visit the Amazon Low Price FBA website.