Amazon reminds sellers: From October 15th to January 14th, holiday peak delivery fees will be charged for all Multi-Channel Fulfillment orders including the United States and Canada. With the busy season approaching, Amazon's entire supply chain will be fully operational to help sellers sell, but this will also lead to increased operating costs. At this time, a group of sellers did not increase their prices, but instead rolled in the spiral at ultra-low prices. Their counterparts bluntly said: "They are all doing charity, and there is no profit at all."

In the context of fierce competition, profit is definitely the core keyword for cross-border people this year.

Until then, Amazon has done its best to absorb this part of the cost increase, but seasonal fees continue to break new highs.

Therefore, Amazon officially made a decision: Amazon will charge the 2022 Holiday Peak Fulfillment Fee during the peak season of each year.

Specific fee increases vary by item size, category and weight. Compared to off-peak delivery fees, the range of this fee increase is not small.

Below are the cost adjustments:

American Station

Major FBA fulfillment fee changes (except apparel)

Major FBA peak fulfillment fees will be in effect from October 15, 2022 to January 14, 2023 . On January 15, 2023, FBA fulfillment fees will revert to off-peak rates. For all large standard-size and oversized items (except special oversized items), the shipping weight will be calculated by taking the greater of the item weight or dimensional weight.

Changes to FBA fulfillment fees for apparel products

From October 15, 2022 to January 14, 2023 , we will implement peak delivery fees for apparel items in the Apparel & Accessories category. On January 15, 2023, FBA fulfillment fees will revert to off-peak rates. For all standard-size and oversize products (except special oversize) over 0.75 lbs, the shipping weight will be calculated by taking the greater of the product weight or dimensional weight.

Canada Station

FBA fulfillment fee changes

The adjusted FBA fulfillment fees shown below will be effective from October 15, 2022 to January 14, 2023 .

Remote Shipping Fee Changes

From October 15, 2022 to January 14, 2023, FBA remote fulfillment fees will be charged at peak shipping rates.

On January 15, 2023, FBA remote fulfillment fees will revert to off-peak rates.

Amazon Multi-Channel Fulfillment Fees

From October 15, 2022 to January 14, 2023, we will be charging holiday peak shipping fees for all Multi-Channel Fulfillment orders within the United States.

On January 15, 2023, FBA fulfillment fees will revert to off-peak rates.

Specific fee adjustments can be found at this link:

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Amazon officials know that the adjustment of logistics costs must have a significant impact on the seller's business. In view of this, Amazon has also taken corresponding important measures in advance, that is, the previously announced maximum 5% sales rebate activity and logistics fee discount plan to help sellers reduce costs, which will not be elaborated here.

Amazon Fulfillment Fees Rising, Will Sellers Raise Prices?

It is Amazon's consistent practice to charge additional delivery fees during peak seasons. Not only delivery fees, but also storage fees during peak seasons.

In response to the reason for the price increase in distribution, the platform said that due to the high concentration of shipments in the year-end sales season, the entire industry will face the pressure of increasing logistics and warehousing costs.

In fact, not only Amazon will increase delivery fees during the peak season every year, but the US Postal Service, FedEx, etc. will also increase prices. No matter which channel cross-border sellers take, operating costs will increase.

As the price increase day is approaching, Amazon sellers suddenly wake up: "It turns out that the delivery fee is going to increase again, and the profit of some products is not 0.35 cents. Can I increase the price?"

Immediately, a colleague pointed out: "Look at the prices of competitors, do you dare to increase the price?"

According to feedback from multiple sellers, the delivery fee is about to rise, and everyone is still buying in at low prices.

An old seller said that when he found that his competitors were selling at a 70% discount, he quickly rushed to the top 2 of the small category. This kind of unprofitable gameplay is destined to not last for too long. Another seller introduced that there are indeed many low-price discounts recently. The product on sale is 48 dollars. Inexplicably, a similar product of 32 dollars is offered at a 10% discount.

When the old sellers compete, the new sellers release ruthless tactics to gain a firm foothold, and sellers in many categories report that the phenomenon of low price involution by new sellers is common. Some sellers are helpless: "In my category, new sellers are lowering the price by 8-15 dollars, and they are still selling at a 10% discount. I really don't know how they make money?"

Under the low price involution, many sellers have negative profits. While doing charity for European and American consumers at a loss, they complained that they did not make money. As inflation intensifies and European and American consumption downgrades, the profits of cross-border sellers have generally declined this year. At this moment, it is very important to reduce costs and increase efficiency.