Amazon FBA Price Increase – what is all the worry?


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Fulfillment by Amazon (FBA)

Ok, there was a price increase that Amazon did on FBA fees.

It was a whole 10 cents on the Ship-n-Pack fee, from 50c to 60c.  And people seem to be upset for some reason.  That is the first FBA price increase I have seen since I joined, that I am aware of.  (almost 3 years now).   USPS Postage has gone up several times in the time period, and again this week.   UPS has had several price increases.  eBay has at least one price increase a year, and sometimes 2.   So why, did this Amazon FBA upset so many people?

One well-known bookseller even blogged about it, saying how this was going to have a massive impact on the MegaSellers.   Huh?  10c??!??

Ok, color me confused.
Here is the actual price increase notice:
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Dear Fulfillment by Amazon Seller,

On May 19, 2011, Fulfillment by Amazon (FBA) will be making several changes to the FBA Program Fees. The following fees will be affected:

Our goal is to provide a world-class fulfillment and customer-service solution for sellers. As we have not modified our rates in several years, it is necessary for us to adjust these fees at this time.

Standard-Size Media Pick & Pack per Unit fee

The Standard-Size Media Pick & Pack per Unit fee for your items ordered on Amazon.com with a selling price of less than $25 will increase from $0.50 per Unit to $0.60 per Unit.

The adjusted Pick & Pack per Unit fee will apply to Standard-Size books, music, video games, DVDs, and software with a selling price of less than $25 that are sold on Amazon.com. The Pick & Pack per Unit fee for Multi-Channel Fulfillment orders placed through other sales channels will not be affected.

Standard-Size includes any packaged Unit that is 20 lbs or less with its longest side 18″ or less, its shortest side 8″ or less, and its median side 14″ or less. A Unit exceeding any of these dimensions is Oversize.

Learn more about Standard-Size Media Order Fulfillment Fees.

Multi-Channel Fulfillment Weight Handling fees for Oversize Units

Multi-Channel Fulfillment Weight Handling fees for Oversize Units will increase for Standard and Expedited (Two-Day) shipping to the amounts in the table below. Multi-Channel Fulfillment Weight Handling fees for Priority (Next-Day) shipping are not affected by this rate change nor are the Weight Handling fees for orders placed on Amazon.com.

Multi-Channel Fulfillment Weight Handling fees for Oversize* Units
Weight

Standard

Expedited
(Two-Day)

First 15 lbs

$0.50

$0.60

Next 16 – 70 lbs

$0.70

$0.80

Next 71 – 150 lbs

$0.90

$1.00

*Oversize: A packaged Unit that is more than 20 lbs or its longest side is more than 18″; its shortest side is more than 8″, or its median side more than 14″. A Unit exceeding any of these dimensions is Oversize.

Learn more about Oversize Media and Non-Media order fulfillment fees.

Special Handling fee for large-screen televisions

To ensure a high quality delivery experience, FBA has determined that some large, delicate products require special handling for delivery. As this delivery method is more costly, FBA will begin applying a Special Handling fee for large-screen televisions*, including LCD, plasma, projection, and CRT television Units, whether ordered On Amazon.com Fulfillment or through another sales channel.

For On Amazon.com Fulfillment, the Special Handling fee will be $50 per order.

For Multi-Channel Fulfillment, the Special Handling fee will be $75 per order.

In your settlement report, the Weight-based fee will reflect the combined Weight Handling fee and the Special Handling fee as a single line item.

Example for On Amazon.com order for large-screen televisions

If you sell a 42″ LCD TV with a packaged weight of  50 pounds that is ordered on Amazon.com you will incur a $3.00 Pick & Pack for each unit, $0.40 per pound ($20) for Weight Handling, and a $50.00 Special Handling fee for a total of $73.00.

On Amazon.com Fulfillment fees for large-screen televisions
Order Handling (per order)

$0.00

Pick & Pack (per unit)

$3.00

Weight Handling (per lb.)

$0.40

Special Handling (per shipment**) new

$50.00

Example for Multi-Channel Fulfillment order for large-screen televisions

If you sell a 42″ LCD TV with a packaged weight of  50 pounds*** through a sales channel other than Amazon.com that is delivered using standard shipping, you will incur a $7.00 Order Handling fee, a $3.00 Pick & Pack fee, the new Weight Handling fee of $0.50 per pound for the first 15 pounds ($8.50), $0.70 per pound for the remaining 35 pounds ($24.50), and a $75.00 Special Handling fee** for a total of $118.00.

Multi-Channel Fulfillment Fees for large-screen televisions

Shipping Method

Standard

Expedited

Priority

Order Handling (per unit**)

7.00

10.00

17.00

Pick & Pack (per unit)

3.00

3.00

3.00

Weight Handling
(per lb.***)
First 15 lbs.

0.50

0.60

1.50

Next 16 – 70 lbs.

0.70

0.80

1.75

Next 71 – 150 lbs.

0.90

1.00

2.00

Special Handling (per shipment**) new

75.00

75.00

75.00

*Large-screen televisions refers to TVs with screens 42″ or larger. However, smaller televisions could qualify for the Special Handling fee based on other factors such as weight and how delicate the TV is.

**Per Unit and Per Shipment: Each Oversize Unit is generally sent as a single shipment in its own package; therefore Amazon does not aggregate the fees for multiple Unit orders that include both Standard-Size and Oversize Units. When calculating the fulfillment fees for orders that include Oversize Units, each Oversize Unit in the order is assessed the applicable per unit Order Handling fee. Large-screen TVs are assessed the Special Handling fee for each shipment.

***Multi-Channel Fulfillment Weight Handling: Total shipment weight is calculated by adding a dunnage factor of 10 percent to the combined total of the individual Unit weight of each Unit in the shipment, then rounding up to the nearest pound.

Learn more about Oversize Media and Non-Media order fulfillment fees.

Regards,

The Fulfillment by Amazon Team

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Here is the USPS Price Increase (much more substantial, but people don’t seem as upset on this one as they are for the 10c increase on FBA)….   ????    Go figure

========================

On January 13th, the U.S. Postal Service® announced a price change that will take effect April 17th, 2011. The average increase across all mail classes will be 1.7 percent. While the April 17th U.S. Postal Service Price Change will be more straightforward than the January 2011 price change, there are still some very important changes that you should be aware of.

As always, DYMO Endicia will be supporting the new prices and will provide a free software update for all customers. Prior to April 17th, 2011 your DYMO Endicia® software will update to a new version that includes the new U.S. Postal Service prices. Please allow this update to be performed when you are prompted. If you have allowed the update, the software will use the old prices before April 17th and will automatically switch to the new prices for all pieces dated April 17th or later.

In accordance with the Postal Law of 2006, the increases are limited to the Consumer Price Index (CPI) cap of 1.7 percent. This is the first U.S. Postal Service mailing services price change in two years. Prices for shipping services, like Priority Mail® and Express Mail®, will not change April 17th. If you are interested in learning more about the 2011 U.S. Postal Service mailing services price change, register for a DYMO Endicia price change webinar. For a complete list of prices from the U.S. Postal Service, visit www.usps.com/prices.

USPS Pricing Change Overview

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Prices will change for the following mail classes:

  • First-Class Mail® letters greater than 1 oz. The price of a 1oz. First-Class Mail letter will remain unchanged at 44 cents
  • First-Class Mail postcards
  • First-Class Mail Large Envelopes/Flats
  • First-Class Mail Parcels
  • First-Class Mail International
  • Standard Mail®
  • Library Mail
  • Media Mail®
  • Extra Services

The U.S. Postal Service will be offering a Commercial Base rate for customers printing single piece First-Class Mail Parcel postage online. The U.S. Postal Service will reward customers for printing postage online and will discount this mail class from the retail rates. The Commercial Base rate will be supported through DAZzle, DYMO Endicia Professional and Endicia Label Server.

First-Class Mail Pricing

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Postcards, letters, large envelopes (flats) and small packages can be sent using First-Class Mail®. This service is ideal for sending personal correspondence, handwritten or typewritten letters, and bills or statements of account. It may also be used for advertisements and lightweight merchandise. First-Class Mail prices are based on both the shape and weight of the item being mailed. For items weighing more than 13 ounces, use Priority Mail.

First-Class Mail Pricing – Letters & Postcards
Weight Not Over
(ounces)
Letters & Cards
(2010 price)
Letters & Cards
(2011 price)
Change % Change
1 $0.44 $0.44 $ – 0%
2 $0.61 $0.64 $0.03 4.92%
3 $0.78 $0.84 $0.06 7.69%
3.5 $0.95 $1.04 $0.09 9.47%
Postcard $0.28 $0.29 $0.01 3.57%
First-Class Mail Pricing – Large Envelopes
Weight Not Over
(ounces)
Large Envelopes
(2010 price)
Large Envelopes
(2011 price)
Change % Change
1 $0.88 $0.88 $ – 0%
2 $1.05 $1.08 $0.03 2.78%
3 $1.22 $1.28 $0.06 4.69%
5 $1.56 $1.68 $0.12 7.14%
10 $2.41 $2.68 $0.27 10.07%
First-Class Mail Pricing – Parcels
Weight Not Over
(ounces)
Parcels
(2010 price)
Parcels
(2011 price)
Parcels
(2011 Commercial Base price)
Savings Over Retail
1 $1.22 $1.71 $1.56 $0.15
2 $1.39 $1.71 $1.56 $0.15
3 $1.56 $1.71 $1.56 $0.15
5 $1.90 $2.05 $1.90 $0.15
10 $2.75 $2.90 $2.75 $0.15

The following are descriptions for each classification of First-Class Mail:

  • First-Class Mail Cards – rectangular cardstock mailpiece not contained in an envelope.
  • First-Class Mail Letters – small rectangular mailpiece no thicker than 1/4 inch weighing 3.5 ounces or less.
  • First-Class Mail Large Envelopes – flat rectangular mailpiece no thicker than 3/4 inch.
  • First-Class Mail Packages – a box, thick envelope, or tube weighing up to 13 ounces.

Media Mail Pricing

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Mail books, sound recordings, recorded video tapes, printed music, and recorded computer-readable media (such as CDs, DVDs, and diskettes). Media Mail can not contain advertising except for incidental announcements of books. The maximum weight for Media Mail is 70 lbs and no more than 108 inches in combined length and girth.

Media Mail Pricing
Weight Not Over
(pounds)
Large Envelopes &
Parcels(2010 price)
Large Envelopes &
Parcels(2011 price)
Change % Change
1 $2.38 $2.41 $0.03 1.24%
2 $2.77 $2.82 $0.05 1.77%
3 $3.16 $3.23 $0.07 2.17%
5 $3.94 $4.05 $0.11 2.72%
10 $5.89 $6.04 $0.15 2.48%

Parcel Post Pricing

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Parcel Post pricing has been greatly simplified. Most of the price cells will not increase on April 17th, and some cells will actually decrease.

Use Parcel Post when sending small and large packages, thick envelopes and tubes containing gifts and merchandise, delivery to all US addresses-including PO Boxes and military addresses, Saturday and residential deliveries at no extra cost. Package can weigh up to 70 pounds and measure up to 130 inches in combined length and distance around the thickest part.

Parcel Post Pricing
Weight Not Over
(pounds)
Zone Average 2010 Zone Average 2011 Change % Change
1 $4.90 $5.25 $0.35 6.67%
2 $6.34 $6.65 $0.31 4.66%
3 $7.55 $7.78 $0.23 2.96%
5 $9.41 $9.55 $0.14 1.47%
10 $12.51 $12.50 $(0.01) -0.08%

Library Mail Pricing

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Library Mail is only for items sent to, from, or between academic institutions, public libraries, museums, and other qualified organizations. Content is limited to books, sound recordings, academic theses, and certain other items. Library Mail can be up to 70 lbs and no more than 108 inches in combined length and girth.

Library Mail Pricing
Weight Not Over
(pounds)
Large Envelopes &
Parcels (2010 price)
Large Envelopes &
Parcels(2011 price)
Change % Change
1 $2.26 $2.29 $0.03 1.31%
2 $2.63 $2.68 $0.05 1.87%
3 $3.00 $3.07 $0.07 2.28%
5 $3.74 $3.85 $0.11 2.86%
10 $5.59 $5.74 $0.15 2.61%

Domestic Service Fee Changes

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Regular Service Fee Changes
Amount for Merchandise
Insurance Desired
USPS Insurance
(2010 Price)
USPS Insurance
(2011 Price)
Change Endicia Insurance
w/Standard Service
Savings with Standard Endicia Ins. w/
Premium and Mac
Savings with
Premium and Mac
Endicia Ins. w/ Pro. Savings
$0.01 to $50.00 $1.75 $1.80 $0.05 $1.15 $(0.65) $0.80 $(1.00) $0.75 $(1.05)
$50.01 to $100 $2.25 $2.30 $0.05 $1.15 $(1.15) $0.80 $(1.50) $0.75 $(1.55)
$100.01 to $200 $2.75 $2.85 $0.10 $2.30 $(0.55) $1.60 $(1.25) $1.50 $(1.35)
$200.01 to $300 $4.70 $4.75 $0.05 $3.45 $(1.30) $2.40 $(2.35) $2.25 $(2.50)
$300.01 to $5000 (+)$1.00 (+)$1.05 $0.05 $1.15 (+)$0.80 (+)$0.70
Express Mail Insurance
Amount for Merchandise
Insurance Desired
2010 Price 2011 Price Change % Change
$0.01 to $100.00 0 0 0 0%
$100.01 to $200 $0.75 $0.80 $0.05 6.25%
$200.01 to $500 $2.15 $2.20 $0.05 2.27%
$500.01 to $5000 $2.15 plus $1.40 for each $500 or fraction thereof over $500 $2.20 plus $1.45 for each $500 or fraction thereof over $500 (+)$.05 plus $.05
Signature Confirmation
Signature Confirmation 2010 Price 2011 Price Change % Change Savings Over Retail
First-Class Mail (Parcels Only) Retail $2.35 $2.45 $0.10 4.08%
Electronic $1.95 $2.05 $0.10 4.88% -19.51%
Priority Mail Retail $2.35 $2.45 $0.10 4.08%
Electronic $1.95 $2.05 $0.10 4.88% -19.51%
Package Services (Parcels Only) Retail $2.35 $2.45 $0.10 4.08%
Electronic $1.95 $2.05 $0.10 4.88% -19.51%
Collect on Delivery (COD)
Amount to be collected or insurance coverage desired, whichever is higher 2010 Price 2011 Price Change % Change
$0.01 to 50.00 $5.50 $5.75 $0.25 4.35%
$50.01 to $100.00 $6.80 $7.10 $0.30 4.23%
$100.01 to $200.00 $8.10 $8.45 $0.35 4.14%
$200.01 to $300.00 $9.40 $9.80 $0.40 4.08%
$300.01 to $400.00 $10.70 $11.15 $0.45 4.04%
$400.01 to $500.00 $12.00 $12.50 $0.50 4.00%
$500.01 to $600.00 $13.30 $13.85 $0.55 3.97%
$600.01 to $700.00 $14.60 $15.20 $0.60 3.95%
$700.01 to $800.00 $15.90 $16.55 $0.65 3.93%
$800.01 to $900.00 $17.20 $17.90 $0.70 3.91%
$900.01 to $1,000.00 $18.50 $19.25 $0.75 3.90%
Return Receipt
2010 Price 2011 Price Change % Change
Requested at time of mailing $2.30 $2.30 $ – 0%
Requested after mailing $4.60 $4.70 $0.10 2.13%
Electronic $1.10 $1.15 $0.05 4.35%

Registered Mail

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Registered Mail
Registered Mail 2010 Price 2011 Price Change % Change
Without insurance, declared value $0.00 $10.60 $10.75 $0.05 1.40%
With insurance, declared value
$0.01 to $100.00 $11.50 $11.50 0%
$100.01 to $500.00 $13.10 $13.25 $0.15 1.13%
$500.01 to $1,000.00 $14.45 $14.65 $0.20 1.37%
$1,000.01 to $25,000.00 $14.65 plus $1.40 handling charge for each $1,000 or fraction thereof over $1,000.00
$25,000.01 to $1,000,000.00 $48.25 plus $1.40 handling charge for each $1,000 or fraction thereof over $25,000.00
$1,000,000.01 to $15,000,000.00 $1,413.25 plus $1.40 handling charge for each $1,000 or fraction thereof over $1,000,000.00
$15,000,000.00+ $21,013.25 plus amount determined by the Postal Service based on weight, space, and value

International Pricing

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First-Class Mail International – Letter and Postcards
Weight Not Over (ounces) Canada 2010 Canada 2011 Change % Change Mexico 2010 Mexico 2011 Change % Change
1 $0.75 $0.80 $0.05 6.25% $0.79 $0.80 $0.01 1.25%
2 $1.00 $1.08 $0.08 7.41% $1.34 $1.36 $0.02 1.47%
3 $1.25 $1.36 $0.11 8.09% $1.89 $1.92 $0.03 1.56%
3.5 $1.50 $1.64 $0.14 8.54% $2.44 $2.48 $0.04 1.61%
Postcard $0.75 $0.80 $0.05 6.25% $0.79 $0.80 $0.01 1.25%
Weight Not Over (ounces) 3-5 (2010) 3-5 (2011) Change % Change 6-9 (2010) 6-9 (2011) Change % Change
1 $0.98 $0.98 0 0% $0.98 $0.98 $ – 0%
2 $1.82 $1.82 0 0% $1.76 $1.76 $ – 0%
3 $2.66 $2.66 0 0% $2.54 $2.54 $ – 0%
3.5 $3.50 $3.50 0 0% $3.32 $3.32 $ – 0%
First-Class Mail International – Large Envelopes
Weight Not Over (ounces) Canada 2010 Canada 2011 Change % Change Mexico 2010 Mexico 2011 Change % Change
1 $1.03 $1.08 $0.05 4.63% $1.03 $1.08 $0.05 4.63%
2 $1.29 $1.34 $0.05 3.73% $1.59 $1.65 $0.06 3.64%
3 $1.55 $1.60 $0.05 3.13% $2.15 $2.22 $0.07 3.15%
5 $2.07 $2.12 $0.05 2.36% $2.71 $3.36 $0.65 19.35%
Weight Not Over (ounces) 3-5 (2010) 3-5 (2011) Change % Change 6-9 (2010) 6-9 (2011) Change % Change
1 $1.24 $1.30 $0.06 4.62% $1.24 $1.30 $0.06 4.62%
2 $2.08 $2.17 $0.09 4.15% $2.03 $2.13 $0.10 4.69%
3 $2.92 $3.04 $0.12 3.95% $2.82 $2.96 $0.14 4.73%
5 $4.60 $4.78 $0.18 3.77% $3.40 $4.62 $0.22 26.41%
First-Class Mail International – Packages
Weight Not Over (ounces) Canada 2010 Canada 2011 Change % Change Mexico 2010 Mexico 2011 Change % Change
1 $1.23 $1.72 $0.49 28.49% $1.23 $1.72 $0.49 28.49%
2 $1.49 $1.98 $0.49 24.75% $1.79 $2.29 $0.50 21.83%
3 $1.75 $2.24 $0.49 21.88% $2.35 $2.86 $0.51 17.83%
5 $2.27 $2.76 $0.49 17.75% $3.47 $4.00 $0.53 13.25%
16 $5.01 $5.58 $0.57 10.22% $8.25 $8.95 $0.70 7.82%
Weight Not Over (ounces) 3-5 (2010) 3-5 (2011) Change % Change 6-9 (2010) 6-9 (2011) Change % Change
1 $1.44 $1.72 $0.28 16.28% $1.44 $1.72 $0.28 16.28%
2 $2.28 $2.59 $0.31 11.97% $2.23 $2.53 $0.30 11.86%
3 $3.12 $3.46 $0.34 9.83% $3.02 $3.34 $0.32 9.58%
5 $4.80 $5.20 $0.40 7.69% $4.60 $4.96 $0.36 7.26%
16 $10.76 $11.39 $0.63 5.53% $10.31 $10.89 $0.58 5.33%

Certified Mail

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Certified Mail is increasing $.05, from $2.80 to $2.85.

Pickup on Demand Service

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Pickup on Demand Service remains at $15.30.

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Ok, this has turned into a very long Blog Post, due to including the actual increase from AZ FBA and USPS.  It is a fact of life, prices go up (rarely do things go down).

Food is up, gas is way up, postage is up, shipping is up, so you just need to adjust and compensate where you can, and keep moving forward.   Life continues on, and so does Online Selling, so let’s get back to having fun selling!

Bob

About FBARocks Bob Willey

My name is Bob Willey and I own Bob's Neat Books & Bob's Neat Stuff & SellerCoaching.com ***** We've been selling on Amazon using FBA since June of 2008, and on Amazon since 2005. We are mostly FBA and we use FBA to sell practically anything! When it comes to selling on Amazon using FBA, we don't discriminate. The only requirement is that the items are profitable! We sell toys, games, books, and media items such as DVDs, CDs, even VHS tapes! We've also been selling on eBay since 1998 with over 11,000 feedbacks (100% Positive)!! Have been an eBay Trading Assistant for over 9 years. Also sell some Media items on eBay. ***** I also provide Seller Coaching services, designed to be one-on-one via Skype video, to target your exact needs, not generalized training, but specifically what YOU need. http://Facebook.com/SellerCoaching ***** I also moderate the YahooGroup FBAForum (see link below): http://finance.groups.yahoo.com/group/FBAForum ***** My background is varied, as I owned a computer consulting business for 28 years, and a Brick-n-mortar Auction House for 5 years with a weekly auction filling a 15,000 sq ft building. Plus I have done over 150 Estate Appraisals. OK, I enjoy STUFF.... ***** http://SellerCoaching.com
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