Why Amazon’s Higher Fulfillment Fees Could Generate $3.1 Billion in Revenue

Amazon.com Inc. has announced it will be raising its Fulfillment by Amazon (FBA) fees starting Jan. 18, 2022, a move that could generate $3.1 billion in incremental revenue. What Happened Amazon will be raising FBA fulfillment fees by an average of 5.2 percent. The fee changes will be based on package size and weight. FBA monthly storage fees will also increase from 75 cents to 83 cents in off-peak months of January through September. Why It’s Important In its announcement, Amazon said it has already absorbed billions of dollars in increased costs, and the new fees are still 30 percent lower on average than if sellers were to fulfill orders via alternative shipping options. Amazon also said it has hired more than 628,000 new U.S. employees and increased its average starting wage to $18 per hour. Bank of America analyst Justin Post said Friday that the fee hike could generate …

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