Amazon FBA Update: Lower Rates for Low-Price Products and the End of Small and Light Program

Understanding the Small and Light Program For years, Amazon's Small and Light program has provided sellers with the option to enroll their low-price, small, and light products. This program offered lower FBA rates, but at the cost of slower shipping speeds compared to standard FBA. Through this initiative, sellers were able to expand their low-price product offerings while customers appreciated the continuous speed improvements.

Introducing Lower FBA Rates for Low-Price Products To better serve sellers and customers, Amazon has decided to end the US FBA Small and Light program. Instead, they will introduce lower FBA rates for all low-price products starting from August 29, 2023. These new rates will simplify the fee structure, making it easier for sellers to benefit from reduced fees on their low-priced selection. The best part? Customers will still enjoy the same fast FBA delivery speeds they love.

Seamless Transition and Benefits for Sellers With the implementation of the new FBA rates, sellers will witness an average decrease of $0.77 per item compared to the current FBA rates for low-price products. For those who were previously enrolled in the Small and Light program, the change means a nominal increase of approximately $0.30 per item, but with the advantage of faster FBA fulfillment speeds. Sellers who weren't part of the program will experience a reduction of about $0.77 per item while enjoying the same speedy FBA fulfillment.

Key Dates and Recommendations Amazon is committed to providing sellers with ample time to adapt to these changes. The Small and Light program will officially close on August 29, 2023, coinciding with the introduction of the new low-price FBA rates. Until then, products already enrolled in Small and Light will continue to benefit from the program. However, enrollment of new products into the program will end after July 17. To prepare for this transition, sellers are encouraged to review their product offerings, check inventory status, and assess any impact on FBA rates.

Detailed information about news and update: https://sellercentral.amazon.com/seller-forums/discussions/t/c94ef3e26ea2dfed5a3939a08411c01f

FAQ: Frequently Asked Questions

Q: What is the reason behind ending the Small and Light program? A: Amazon has observed how lower fees have empowered sellers to offer a wider range of affordable products. Additionally, they have recognized the value customers place on faster delivery speeds. As a result, Amazon has decided to discontinue the Small and Light program and implement lower FBA rates for low-price products, ensuring sellers can provide customers with a better experience.

Q: Will there be a significant difference in fees for low-price products? A: The new FBA rates for low-price products will be, on average, $0.77 lower per item compared to the current rates. Sellers who were enrolled in Small and Light will experience a slight increase of around $0.30 per item, but this comes with the benefit of faster FBA fulfillment speeds. Sellers who were not part of the program will enjoy a reduction of approximately $0.77 per item.

Q: How should sellers prepare for these changes? A: To prepare for the transition, sellers have approximately two months to review their product offerings, check inventory status, and assess the impact of the new FBA rates. It's recommended to stay informed about the latest FBA fees by visiting the Low