How to Adapt to Amazon's Low-Price FBA Program: A Guide for Sellers

Amazon announced it will replace its Small and Light FBA program with a new Low-Price FBA program in all regions. This change will affect sellers who offer low-cost products that meet certain weight and size requirements. In this article, we will explain what the Low-Price FBA program is, how it differs from the Small and Light program, and what are the pros and cons of this change for sellers.

What is Low-Price FBA and how is it different from Small and Light?

Low-Price FBA is a new fulfillment option that offers reduced FBA fees for ASINs priced under a certain threshold. The price threshold varies by marketplace, see Fact list below. Unlike Small and Light, which had a separate fulfillment network and slower shipping speeds, Low-Price FBA will use the same fulfillment centers and offer the same fast delivery as standard FBA. This means that your low-priced products will be eligible for Prime benefits and faster  shipping for all customers.

To qualify for Low-Price FBA your products simply needs to price under the threshold and be eligible for FBA. Amazon will automatically apply Low-Price FBA rates. No action is required!

What are the pros and cons of Low-Price FBA?

The main advantage of Low-Price FBA is that it can help you improve your margins and competitiveness on low-cost products. By offering faster and free shipping to your customers, you can increase your sales and conversions. You can also save on fulfillment costs, as Low-Price FBA fees are lower than standard FBA fees.

For example, according to Amazon's fee chart comparison below, Low-Price FBA rates have significantly reduced fulfillment fees when compared to Standard FBA with a $0.77 savings across the board

When comparing to Small and Light, the biggest advantage to Low-Price FBA is the automatic enrollment for eligible products. No more product by product enrollment which was necessary with Small and Light!

The main drawback of Low-Price FBA vs Small and Light is the price threshold for eligibility is $2 lower for the US marketplace vs Small & Light. Further, the fulfillment discount is lower, on average, which means certain products that were enrolled in Small and Light will will see increase in fulfillment cost.

Low-Price FBA Fact List

• Small and Light (S&L) FBA Fulfillment discount program is being replaced by Low-Price FBA
• Small and Light rates continue to apply until the program expires on August 29, 2023 in US and September 26, 2023 for EU marketplaces.
• Enrollment of new Small and Light ends after July 17th, 2023 in US and September 14, 2023 for EU.
• Low-Price FBA applies automatically for all items priced below:
  • $10 in US (reduction from $12 vs. S&L)
  • £10 in the UK*,
  • €11 in Germany*,
  • €12 in France, Italy, Spain and the Netherlands*,
  • SEK 140 in Sweden*,
  • PLN 55 in Poland*.

*EU Price thresholds shown including VAT and remain unchanged vs S&L.

• Small and Light used slower shipping speeds than standard FBA and Low-Price FBA will ship at standard (faster) FBA speeds
• Low-Price FBA eligibility is automatic & rates & won't be subject to 2023 holiday peak fulfillment fees (October 15, 2023, through January 14, 2024).
• Low-Price FBA rates will be an average of $0.77 lower per item than the current FBA rates for these products in the US.
• If your products were enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.22 more per item than with Small and Light, but your items will now ship with the faster FBA fulfillment speeds.
• If your products were not enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.77 less per item while continuing to enjoy the fast FBA fulfillment speeds you have been receiving.

Compare Low-Price vs Small & Light vs Standard FBA Fees

How do Low-Price FBA fees compare to the previous Small & Light program. How do Low-Price FBA fees compare to standard FBA fulfillment?

United States (US) FBA Fee comparison

In the US marketplace, Low-Price FBA rates have significantly reduced fulfillment fees when compared to Standard FBA with a $0.77 savings across the board. When comparing Low Price FBA fees vs Small & Light, results vary with standard size tiers seeing an average cost cost increase of $0.22 using Low Cost FBA.

The Large standard size tiers between 4oz - 12oz see the largest disadvantage for Low-Price FBA vs Small & Light with a cost increase of up to $0.54.

¹Shipping weight is calculated based on the item’s unit weight or dimensional weight.

* Most products (non-dangerous goods, non-apparel)

Source-https://sellercentral.amazon.com/help/hub/reference/GJTAVU7P2W2VE8Q9

United Kingdom (UK) FBA Fee comparison

In the UK marketplace, Low-Price FBA rates provide a moderate reduction in fulfillment fees when compared to Standard FBA with a £0.37 savings across the board. When comparing Low Price FBA fees vs Small & Light, fees are on average £0.22 less with Small & Light.

Small envelope standard size tier with ≤80g shipping weight has the largest disadvantage for Low-Price FBA vs Small & Light with a cost increase of £0.48.

Germany (DE) FBA Fee comparison

In the DE marketplace, Low-Price FBA rates provide significantly reduced fulfillment fees when compared to Standard FBA with a €0.71 savings across the board. When comparing Low Price FBA fees vs Small & Light, results are mixed with Low-Price FBA €0.18 more expensive on average in the envelope size tiers and up to €0.35 less expensive in Small Parcel.

France (FR) FBA Fee comparison

In the France marketplace, Low-Price FBA rates provide significantly reduced fulfillment fees when compared to Standard FBA with a €0.61 savings across the board. When comparing Low Price FBA fees vs Small & Light, results are mixed with Low-Price FBA €0.21 more expensive on average in the envelope size tiers and up to €0.17 less expensive in Small Parcel.

Spain (ES) FBA Fee comparison

In the Spain marketplace, Low-Price FBA rates provide significantly reduced fulfillment fees when compared to Standard FBA with a €0.59 savings across the board. When comparing Low Price FBA fees vs Small & Light, results are mixed with Low-Price FBA €0.38 more expensive on average in the envelope size tiers and up to €0.11 less expensive in Small Parcel.

Italy (IT) FBA Fee comparison

In the Italy marketplace, Low-Price FBA rates provide significantly reduced fulfillment fees when compared to Standard FBA with a €0.64 savings across the board. When comparing Low Price FBA fees vs Small & Light, results are mixed with Low-Price FBA €0.26 more expensive on average in the envelope size tiers and up to €0.31 less expensive in Small Parcel.

¹ Shipping weight is calculated based on the item’s unit weight. Learn how to determine your product's shipping weight.

² The fees will differ if you have FBA inventory in Germany and do not participate in the Fulfillment Network Expansion, authorizing Amazon to store and process German FBA inventory in our fulfillment network, including Poland and the Czech Republic. You are charged an additional fulfillment fee of £0.26 for the UK, €0.26 for Germany, €0.27 for France, Spain, Italy and the Netherlands (inclusive of the Digital Sales Tax for France), SEK 2.50 for Sweden or PLN 1.15 for Poland, per FBA unit shipped from German fulfillment centers for both standard FBA and low-priced FBA items.

Source-https://sellercentral-europe.amazon.com/help/hub/reference/GJTAVU7P2W2VE8Q9

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