Amazon Update Alert: Essential Changes for Sellers

Stay ahead of the curve with our latest roundup of Amazon updates! 🙌

We review the major changes to the UK Multi-Channel Fulfillment fees, ensuring you have clarity on your costs and can make informed decisions about your fulfillment strategies.

Additionally, we highlight essential Amazon policy updates that could impact your selling journey, emphasizing the importance of staying compliant with the platform’s guidelines. We’ll also unveil some cool upgrades to Price Discounts, Fulfillment Insight, and Buy Shipping.

Keeping abreast of these developments is crucial for maintaining a competitive edge and ensuring continued success on Amazon.

UK/EU Amazon Fee Changes

2024 UK Multi-Channel Fulfillment (MCF) Fee Updates

Effective May 16, 2024, expect to see upcoming changes to Amazon’s MCF fees in the UK. These adjustments are being made to accommodate the rising costs of fulfillment and transport.

Below are the key updates:

1. Fee Increases

On average, UK MCF fees will rise by approximately 5.6%.
The extent of the fee changes will vary based on ship speed, size tier, and the number of units in an order.
Some size tiers, such as standard shipping envelope size tiers below 460 g, will not experience any increase.

2. Introduction of New Size Tiers

Six new small-parcel size bands (ranging from 150 g to 3.9 kg) and one extra-large envelope size band will be introduced.
These new bands aim to better reflect the weight and dimensions of your products, providing more accurate fee assessments.

Note that the impact of these fee adjustments on your business will depend on the specific mix of size tier and shipping speed (standard or expedited) for your products. We encourage you to review the updated fee structure carefully to understand how it may affect your fulfillment costs.

Here are examples of fee changes based on the new fee structure:

Standard Shipping

This table illustrates how fees for different size tiers and unit per order (UPO) quantities will change before and after May 16, 2024, reflecting Amazon’s adjustments to UK MCF fees.

Considering the upcoming adjustments in MCF fees for most size tiers, it’s important to be strategic in your fulfillment approach for 2024 and beyond to maintain profitability.

One option is to adjust your pricing to accommodate these fee changes effectively. Alternatively, you might consider transitioning to Low-Price FBA (for items priced below £10) or joining the Ships in Product Packaging program, benefiting from reduced fulfillment fees.

Another approach could involve encouraging customers to purchase multiple units within a single order, enabling you to qualify for shipping discounts (25% on average) offered through MCF.

Evaluating these strategies can help to optimize your fulfillment processes and ensure continued profitability amidst evolving fee structures.

Amazon Reduces Referral Fees for Low-Priced Clothing and Accessories

Possibly as a play toward remaining competitive with competitors such as Shein and Temu, starting May 15, 2024, Amazon is set to implement a reduction in referral fees for low-priced Clothing and Accessories.

This move will see the referral fee drop from 15% to 8% for Clothing and Accessories priced below £15 in the UK, below €15 in Germany, France, Italy, Spain, the Netherlands, and Belgium, and below SEK 175 in Sweden.

In Poland, the referral fee for Clothing and Accessories priced below PLN 65 will be lowered from 10% to 8%. While this reduction specifically targets low-priced Clothing and Accessories, referral fees for other category types will remain unchanged.

This adjustment holds significant implications for sellers, offering them the opportunity to expand their product offerings, particularly in the low-price range. With lower referral fees, sellers can offer customers a wider selection of affordable products, catering to various budget ranges and potentially driving increased sales.

As Amazon implements these changes, sellers will want to re-evaluate their product pricing strategies and determine whether reduced pricing could lead to increased profits.

Amazon Policy Updates

Amazon’s Annual Business Info Check for INFORM Act

As of April 2024, Amazon has implemented a new policy requiring sellers with 200 or more transactions or $5,000 or more in revenue over a continuous 12-month period to annually review and certify their business information.

This initiative, mandated by the US INFORM Consumers Act, aims to enhance transparency and accountability. Sellers are encouraged to proactively review and update their information on the Account Health page to avoid potential account deactivation.

While sellers will receive formal notifications for review and certification, taking proactive steps now can prevent account deactivation later. Sellers are urged to visit their Account Health page and review their information promptly. Certification must be completed within 10 days upon viewing the Notice and Certification page.

If encountering certification challenges, they may stem from eligibility criteria, such as sales thresholds, or the requirement for the primary user with specific permissions to certify, according to Vanessa Hung, Seller Assist Co-Founder.

Neglecting certification can result in account suspension due to INFORM, which occurs when Amazon cannot verify updated information within the specified timeframe or if certification is not completed within 10 days of receiving the notice.

In a LinkedIn post, Hung reminds sellers that ocassionally, even after completing the certification, they may still receive a notification. In such instances, allow Amazon a window of 48 to 72 hours to update and remove the notification automatically. There’s no requirement for recertification or further action on your part during this period.

Click here to view the step-by-step process for certifying your business.

Amazon Grants More Time for Adjustment to Low Inventory Fee

Amazon’s recent announcement regarding adjustments to the low-inventory-level fee for third-party sellers has sparked a mixed response within the seller community.

Originally introduced as a means to cover costs associated with enhancing delivery speeds and in-stock levels, the fee has prompted concerns among sellers due to its potential impact on their businesses.

However, Amazon’s decision to extend the credit period for sellers affected by the fee until May 14th has been met with some relief. Sellers can expect to receive credits by May 31st, providing them with additional time to adjust to the new fee structure.

Furthermore, Amazon has introduced several changes aimed at mitigating the fee’s impact in certain situations. These changes include:

Exempting products with low sales volume (less than 20 units in the last 7 days) from the fee.
Crediting sellers for any low inventory level fees incurred due to excessive inbound delays caused by Amazon.
Providing a time-bound exception on the fee for products featured in select promotional Amazon Deals like Prime Day.

While some sellers have welcomed these adjustments, others have expressed frustration over the complexity of managing the fee. Concerns have been raised regarding the lack of transparency surrounding the fee, as well as its impact on low-margin products and the overall seller experience.

Despite these challenges, sellers are hopeful that Amazon will continue to listen to their feedback and work towards implementing solutions that address their concerns effectively.

Preparing for the General Product Safety Regulation (GPSR) on Amazon

Amazon has recently shared crucial updates regarding the impending implementation of the GPSR in the EU, including Northern Ireland under the Northern Ireland Protocol.

Set to take effect on December 13, 2024, this regulation marks a significant milestone in ensuring the safety and integrity of non-food consumer products in the EU market.

For sellers operating on Amazon UK, no additional information submission is required. However, for listings on Amazon EU-based stores, compliance with GPSR mandates is necessary. Sellers are urged to follow instructions published on Seller Central for the EU-based store where they sell products within the scope of GPSR.

GPSR Scope and Requirements

Under GPSR, most non-food consumer products offered for sale in the EU are subject to compliance, including used, repaired, and reconditioned items.

Key Requirements:

Responsible Person (RP): Assign an RP within the EU for non-food products and ensure products are labeled with their contact information in one of the EU’s official languages.
Manufacturer Information: Ensure that your products are labeled with the manufacturer’s contact details and, where applicable, the importer’s information. Make sure this information is prominently visible on both the physical products and their online listings.
Labelling and Traceability: Comply with the regulations outlined in the GPSR and adhere to existing labeling mandates. Guarantee that each product is equipped with a distinctive identifier for effortless recognition. Furnish essential warning and safety details, both visibly on the product and within online listings.

What Sellers Need to Do

To maintain compliance with GPSR and Amazon’s policies, sellers are advised to take the following actions:

Demonstrate Compliance to Amazon: Guarantee adherence to GPSR regulations for EU-based stores to avoid potential listing removal and maintain eligibility for flash sales.
Brand Owners: Prove product compliance, register with Amazon Brand Registry, designate an RP, provide manufacturer information, and publish essential information on product pages.
Resellers: Prove product compliance, designate an RP, provide manufacturer information, and display product images and safety details.
Removing Products from Sale: If not continuing sales in EU stores, remove affected products from inventory via Manage Inventory dashboard or FBA.
Displaying Information on Product Pages: Within 24 hours of confirmation, product detail pages will feature details of your RP and manufacturer, accompanied by relevant images and safety documentation.

Submitting Compliance Details to Amazon

Use the Add Compliance Information widget in the Manage Your Compliance dashboard to provide necessary details. Submit Responsible Person and manufacturer information for FR, DE, IT, ES.

New Seller Tools and Updates

Amazon Launches the New Manage All Inventory BETA Tool

Amazon recently introduced the Manage All Inventory BETA tool to streamline inventory management. With improved visibility by displaying up to 250 listings per page, sellers will get a more comprehensive view of their inventory at a glance. The tool offers both a condensed view and a more detailed layout.

To set your tool defaults, click the gear icon in the dashboard to navigate to the Preferences page, where you can customize your view according to your unique workflow.

Variations are now tied to parent ASINs and can be expanded or contracted in their parent/child groupings.

The “All filters” option provides a convenient way to sort and organize inventory based on specific criteria such as listing conditions.

Another welcome addition to the Manage All Inventory BETA tool is the ability to add business prices and quantity discounts directly from the inventory management interface. This feature simplifies the process of setting competitive prices and incentivizing bulk purchases, helping sellers maximize their sales potential.

For sellers looking to learn more about the new Manage All Inventory BETA tool and explore its full range of features and capabilities, Amazon offers a comprehensive tour of the product updates.

Visit the Manage All Inventory BETA page to access valuable resources and guides to help them make the most of this new tool.

Amazon Unveils New Price Discounts Dashboard

In a bid to empower sellers and enhance their ability to manage inventory effectively, Amazon has released the Price Discounts dashboard. This new feature allows sellers to offer discounted prices on limited quantities for up to 30 days, providing a strategic avenue to sell through inventory and stimulate sales.

When a price discount is activated, shoppers browsing the platform will see the reduced price prominently displayed alongside a strikethrough reference price. This visual representation serves to highlight the potential savings, effectively capturing the attention of potential buyers and encouraging conversions. Once the designated period elapses or the allocated quantity is exhausted, the discounted price seamlessly reverts to its regular rate.

Pro tip: Take it a step further by offering customized percentage-off or flat-rate discounts on products with brand-tailored coupons. Choose “Brand” as the audience type to effectively target high-intent customers within distinct categories, including repeat customers, recent customers, brand cart abandoners, and high-spend customers.

Strategic Discount Pricing

The flexibility of the Price Discounts tool allows sellers to execute pricing initiatives on a global scale. Sellers have the freedom to select the Amazon store in which they wish to offer discounted prices, tailoring their approach to specific market dynamics and consumer preferences.

The comprehensive performance tracking capabilities of the Price Discounts tool extend beyond individual listings, offering sellers valuable insights into their global sales performance. Sellers have the option to analyze performance metrics by region, Amazon store, and ASIN, facilitating informed decision-making and strategic planning.

Overall, the introduction of the Price Discounts tool heralds a new era of flexibility and control for Amazon sellers, offering a powerful solution to address inventory challenges and drive sales growth. By leveraging this innovative tool, sellers can effectively navigate seasonal fluctuations, clear excess inventory, and capitalize on strategic sales opportunities to maximize profitability.

Personalized Recommendations Now on the Fulfillment Insight Dashboard

Amazon’s latest introduction of the Fulfillment Insight Dashboard brings a powerful tool for sellers to enhance their delivery performance.

With this dashboard, sellers gain valuable insights into their fulfillment operations, particularly for seller-fulfilled, non-Prime orders. The dashboard offers personalized recommendations tailored to specific categories like handling time and on-time delivery rate, enabling sellers to address any issues that may be impacting their fulfillment performance.

This not only ensures a smoother experience for customers but also helps sellers maintain high standards and meet Amazon’s stringent requirements.

Monitor SAFE-T Claims Summary with New Dashboard

Amazon has recently launched a new SAFE-T dashboard aimed at giving sellers the ability to track their SAFE-T claims and related reimbursements more effectively.

This dashboard provides sellers with detailed insights into their claims, including the percentage of claims granted, claim amount granted, top three claim denial reasons, and the top three products with claims.

SAFE-T, which stands for “Sold as New, Fulfilled by Amazon, Transferred Customer Returns,” allows sellers to appeal Amazon’s decision to issue a customer refund. In cases where Amazon determines that sellers were not at fault, they may be issued a reimbursement at Amazon’s sole discretion.

However, sellers have expressed various concerns and frustrations regarding the claims process. Some have highlighted the absence of a standardized form for submitting claims, suggesting that such a form could potentially reduce the likelihood of claim denials.

Others have emphasized the need for policy clarification and consistent adjudication, particularly concerning return shipping charges. There is a consensus among sellers that adherence to rules and policies does not always guarantee reimbursement, leading to feelings of frustration and confusion. Some sellers have questioned the fairness and transparency of Amazon’s policies and procedures.
Overall, while the new SAFE-T dashboard represents a step forward in providing sellers with greater visibility and control over their claims, there remains a need for ongoing improvements and enhancements to ensure a fair and equitable claims process for all sellers.

Amazon Adds UPS Ground Saver to Buy Shipping

In response to the evolving needs of sellers and customers alike, Amazon has recently integrated UPS Ground Saver into its array of shipping options available through Amazon Buy Shipping. This addition offers sellers a reliable solution specifically tailored for residential deliveries, ensuring packages reach their destinations efficiently and effectively.

With UPS Ground Saver, sellers can purchase shipping labels directly through Seller Central, Shipping API v2, or select multichannel shipping integrators. This service brings several advantages to the table, including the ability to deliver seven days a week and cater to non-urgent residential packages.

Moreover, UPS Ground Saver extends its reach beyond traditional addresses, allowing deliveries to PO boxes, US territories, and military addresses worldwide.

Another notable feature of UPS Ground Saver is its flexibility in accepting packages of varying sizes, accommodating parcels up to a maximum size of 130 total inches.

For sellers utilizing multichannel-order management tools or proprietary software linked to Amazon’s APIs, integrating UPS Ground Saver into their shipping methods may initially require manual configuration. However, this setup paves the way for seamless automation of order fulfillment processes using this convenient shipping option.

By leveraging UPS Ground Saver, sellers can streamline shipping operations, expand delivery capabilities, and ultimately drive greater satisfaction among their customer base.
Visit UPS shipping services and restrictions for more information.

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Chelsea Cohen

Chelsea Cohen is an Amazon seller, speaker & consultant. An Amazon expert, her regular clients include 7 & 8-figure sellers. She has been featured on AM/PM Podcast, 7-Figure Sellers Summit, and the Prosper Show & Amazing Summit stages, among others.