Amazon sellers in Japan face new challenges as the e-commerce giant announces significant adjustments to its Fulfillment by Amazon (FBA) fee structure, effective March 2024. The changes affect multiple aspects including sales commissions, storage fees, long-term storage fees, and fulfillment charges, potentially squeezing profit margins and forcing strategic reevaluations.
Tiered Commission Structure Targets Fashion Categories
The most notable changes involve a new tiered commission system for three product categories:
Apparel and Fashion Accessories
- 12% commission on total sales below ¥3,000
- 8% commission on amounts exceeding ¥3,000
Footwear and Bags
- 12% commission on total sales below ¥7,500
- 6% commission on amounts exceeding ¥7,500
Jewelry
- 10% commission on total sales below ¥10,000
- 6% commission on amounts exceeding ¥10,000
This restructuring requires sellers to carefully analyze pricing strategies to maintain profitability under the new commission model. The changes may also influence product development plans for 2024.
Comprehensive FBA Fee Increases
Effective April 1, 2024, Amazon will implement broader FBA fee adjustments:
Small and Light Program
An additional ¥15 per item shipping fee will apply to lightweight products.
FBA Fulfillment Fees
Amazon introduces three new size tiers within the Standard-2 category:
- Standard-2a (under 40cm): ¥434 per item
- Standard-2b (under 50cm): ¥465 per item
- Standard-2c (under 60cm): ¥485 per item
Storage and Long-Term Inventory Fees
Small/standard-sized items (excluding apparel and bags) will face increased storage fees. The most significant change involves long-term storage:
- Over 30% increase in fees for inventory stored over one year
- New charge for redundant inventory stored 271-365 days
The new 271-365 day fee tier means sellers will begin paying long-term storage costs three months earlier than before, significantly increasing expenses for slow-moving inventory.
Strategic Recommendations for Sellers
To navigate these changes, sellers should consider several operational adjustments:
Pricing Optimization
Reevaluate product pricing structures to account for increased fees while maintaining market competitiveness.
Inventory Management
Improve inventory turnover through better forecasting and promotional strategies to minimize long-term storage costs.
Operational Efficiency
Leverage Amazon's tools for inventory management and advertising to streamline operations.
Sales Channel Diversification
Explore alternative sales platforms to reduce dependence on Amazon's marketplace.
While these fee increases present challenges, they also create opportunities for sellers who can adapt through strategic planning and operational improvements.