Dive Brief:
- Amazon won't increase or add new fulfillment fees for its third-party sellers in 2025, according to an announcement Tuesday.
- The e-commerce giant said it continues to lower its cost to serve customers after shifting to a regional fulfillment model, allowing it to avoid hiking Fulfillment by Amazon fees even in the face of inflation and employee investments.
- Amazon will also lower charges in certain cases. This includes inbound placement service fees for large and bulky products under the company's "minimal shipment splits" plan, which will drop by $0.58 per unit on average starting Jan. 15.
Dive Insight:
Amazon levied new seller fees related to inbound shipping and low inventory levels this year, which helped the company cover costs as it worked to boost delivery speeds and place products closer to customers.
However, Amazon also acknowledged that the charges introduced added complexity and required sellers to adjust their businesses in some cases. As a result, the company said it wants "to focus on simplicity and stability" and minimize sellers' operational burdens and expenses next year.
That shift in focus could be well-received by businesses that are still trying to refine how they can best leverage Amazon's logistics capabilities without straining their budgets.
"For years, we’ve seen fees steadily climb, making this announcement a welcomed pivot toward easing seller costs and empowering growth on the platform," said Eva Hart, senior manager of demand generation at Jungle Scout, a provider of Amazon seller software, in a LinkedIn post.
But the pivot doesn’t undo years of incremental fee increases that sellers continue to shoulder, according to Tyler Wallis, founder and CEO of TripleLine, which provides services for brands on Amazon.
“If you’re a seller, use this brief reprieve wisely,” Wallis said in a LinkedIn post. “Focus on profitability, optimize your listings, and diversify your inbound supply options.”
Beyond new fees this year, Amazon sellers have also had to navigate capacity constraints at West Coast warehouses and an earlier inventory deadline for the holidays.
