Amazon Reduces Logistics Fees for Low-Cost Products

Amazon, has announced a major move that will directly affect products under $10. Starting 29 August, the company will eliminate the “Small and Light” programme, which was previously used by sellers for these items.

Amazon stated its commitment to offer more competitive rates for low-cost products. As of 29 August, the Small and Light programme will be closed in the US, and new low-cost FBA rates will take effect.

Until then, items enrolled in the ‘Small and Light’ programme will continue to be charged at the current rates. However, after 17 July, no new products can be enrolled in this programme. The main objective of this measure is to provide benefits to both sellers and consumers by improving the shopping experience on Amazon.

Commenting on the transformation, the company said: “With this change, we will close the Small and Light programme in the US as of 29 August and the new low-cost FBA rates will take effect. Until then, items enrolled in Small and Light will continue to be charged at the current rates. Enrolment of new products in the programme will end after 17 July.

The company also ensured that any eligible items will automatically receive the low-cost rates and will not be subject to FBA’s higher holiday ‘peak’ rates, which will apply from 15 October 2023 to 14 January 2024. This means that sellers will be able to benefit from more affordable rates over the Christmas period.

Although Amazon has not yet revealed what the new rates will be, it has confirmed that they will apply to all items priced under $10. Importantly, the company has not detailed whether these rates will vary depending on the weight of the product, but the aim of this change is to encourage the sale of low-cost products and improve efficiency in their delivery.

Despite the benefits this change may bring to many sellers, some have expressed dissatisfaction with the new tariff. Currently, Amazon FBA Small and Light offers lower fees for items priced under $12. Some sellers feel that the price should have increased rather than decreased. However, as of 29 August, sellers will only be able to choose between two types of logistics rates: standard, for items priced over $10, and low-cost, for items priced under $10.

Amazon is in the process of implementing a reduction in logistics fees for low-cost products in the US, and while the exact details of the new fees are not yet known, they are expected to boost the sale of affordable products on Amazon, improving the shopping experience for both sellers and customers.

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