On June 29, 2023, Amazon announced they will end the FBA Small and Light program on August 29, 2023.
Amazon will replace the old Small and Light Program with new Low-Price FBA rates, still saving sellers money – but not as much as Small and Light would have.
Here’s what you need to know about the Small and Light Program ending and what will replace it.
What was the Amazon FBA Small and Light Program?
The Small and Light Program allowed sellers to offer smaller, lighter, and cheaper products for a reduced fulfillment fee.
Amazon FBA fees would typically make selling low-priced items unprofitable, but the Small and Light Program reduced those fulfillment costs for products that met certain criteria, including weight, size, and price.
Amazon was able to provide lower fulfillment costs for products enrolled in Small and Light because it provided slower shipping speeds than standard FBA.
If your products were enrolled in Small and Light, that will end on August 29, 2023.
READ MORE | How to Reduce Amazon FBA Fees: 13 Tips for 2023
What are the new Low-Price FBA rates?
Amazon will replace Small and Light with Low-Price FBA rates, which will still lower the standard FBA rates for all low-price products while providing the “same, fast FBA delivery speeds that customers love.”
Basically, if you sell low-priced products on Amazon, your products will have the same shipping speeds as higher-priced products. With Small and Light, you had lower FBA fees, but your products also shipped slower to your customers.
Here is what Amazon states in its News update:
- The new FBA rates for low-price products will be an average of $0.77 lower per item than the current FBA rates for these products.
- If your products were enrolled in Small and Light and are priced below $10, this change will mean that you will pay about $0.30 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.
- For items priced above $10, they will automatically have the standard FBA rates and shipping speeds applied.”
In short, if your products are priced below $10 and were enrolled in Small and Light, you will pay about $0.30 more per item with the new low-price rates.
Overall, that isn’t too bad, considering your products will now be shipping faster with the standard FBA fulfillment speeds.
Eligibility for the Low-Price FBA fees
- Products priced below $10
That’s it. If your product is priced below $10, you will pay a little bit less in fulfillment fees. The Small and Light Program had more eligibility criteria.
Low-Price FBA fulfillment fees
Low-Price FBA rates are $0.77 less than standard FBA rates; let’s look at the fee table:
Do you sell low-priced items?
If your products were enrolled in Amazon’s Small and Light Program, this news may come as a surprise. But with the new low-price FBA rates, you will still save some money on fees, while getting your products to your customers much faster.
Do you have more questions about this update? Let us know in the comments.