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As the year approaches its end, Amazon, the world's largest online marketplace, enters its peak season. Similarly, the holiday season is the busiest season for FBA sellers as customers turn to the platform to find the ideal gifts for their family and friends. That’s why, since 2022, Amazon has started to impose a Holiday Peak Fulfillment Fee for Fulfillment by Amazon (FBA) sellers.
In this blog, we are breaking down the Amazon holiday peak fulfillment fee 2023 for different product sizes and categories. Whether you're a seasoned Amazon seller or just starting your e-commerce journey, it is vital for you to know the updated holiday peak season fee to plan your FBA inventory better and navigate the holiday season seamlessly to make the most out of it.
What is the Amazon Holiday Peak Fulfillment Fee?
In 2022, Amazon introduced the holiday peak fulfillment fee to accommodate the increased demand for fulfillment services and charged sellers during the holiday season. According to Amazon, “This seasonal fee is similar to those charged by other major carriers and covers increased fulfillment and transportation operating costs during the busy holiday shopping season.”
Amazon Holiday Peak Fulfillment Fee 2023
The annual holiday peak fulfillment fee for Fulfillment by Amazon will start on October 15, 2023, and will be in effect till January 14, 2024. And on January 15, 2024, the FBA fulfillment fees will return to the standard rates.
Additionally, the holiday peak fulfillment fee will apply to US FBA, Canada FBA, Remote Fulfillment with FBA, and Multi-Channel Fulfillment (MCF) items, except for US FBA items priced under $10. According to the updated peak season fulfillment fee, sellers have to pay an additional fee ranging from $0.20 to $2 depending upon the product size and category.
Here are the 2023 US FBA fulfillment fee changes (non-apparel):
In the non-apparel category, the rise in price ranges between $0.20 to $2.5. For example, for large standard-sized products weighing 8-12 oz, the peak period fulfillment fee changes to $4.54 from $4.24. Check out the table below for the exact peak period fulfillment fee based on size tier and shipping weight.
2023 FBA fee changes for apparel:
During the peak season, the FBA fulfillment fee for apparel increases anywhere between $0.20 to $3. Here’s the detailed fee table that contains both the non-peak period fulfillment fee and the peak period fulfillment fee:
2023 FBA fulfillment fee changes for dangerous goods
FBA has separate fulfillment fees for dangerous goods (also known as hazardous materials or hazmat) that require special handling and storage. Here is the detailed table containing the fee details:
Amazon FBA monthly storage fee during peak season
During the peak season, sellers tend to increase inventories sent to the fulfillment centers owing to the holiday season demand. So, during the peak season, Amazon also increases its monthly storage fees between October to December. Here’s a detailed breakdown of FBA monthly charges:
Dangerous goods storage fee during peak season: For standard-sized dangerous goods, the monthly storage fee is $3.63 per cubic foot, and for oversized products, the storage fee is $2.43.
UPS and FedEx peak season surcharge
Similarly, during the peak season every year, two of the biggest shipping carriers in the U.S. – UPS and FedEx – announce their holiday surcharges. This year, FedEx updated its rates for FedEx express and ground services. The surcharge ranged from $1.35 to $6.95 for the FedEx ground package and $2.40 to $7.40 for the FedEx express package.
UPS has announced its peak surcharge for certain domestic and international shipments, effective from October 1, 2023, through January 13, 2024. Unlike FedEx, UPS did not publish the specific increase in rates but only published an overview of the average rate increases.
Conclusion
Preparation is vital as the holiday season approaches and the demand for online shopping surges. Equipped with the knowledge of Amazon’s updated holiday peak fulfillment fee and the associated monthly storage fees, you can plan your FBA operations effectively, provide exceptional customer service, and make the most out of this exciting, albeit challenging, time of the year.
How can e-commerce operators prepare for peak season?
How a business handles its warehouse operations during the peak season can make or break a company. It’s no secret that order volume during the peak season skyrockets, and e-commerce operators must be prepared months ahead to tackle the peak season issues. For example, a surge in customer orders can strain the complete order fulfillment and processing systems, leading to delays, errors, and potentially dissatisfied customers. Furthermore, it is essential for e-commerce operators to balance stock levels to meet increased demand without overstocking or running out of popular items, which requires precise inventory management.
Other major challenges that e-commerce operators face during the peak season are logistics and ecommerce shipping problems, limited warehouse space, labor shortages, outdated warehouse management systems, etc.
Hopstack provides all the necessary tools that a fulfillment function needs to manage a high volume of orders in this period and solve all the bottlenecks associated with fulfilling the orders. Businesses can achieve 100% efficiency and accuracy in high-volume pick, pack, and ship operations with Hopstack's e-commerce fulfillment software.
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