Small & Light Program to be Replaced with New "Low-Price FBA Rates" August 29

Amazon has announced that big changes are coming to FBA selling fees at the end of the summer. Beginning August 29, 2023, depending on whether you were part of the Small & Light program or not, the new Low-Price FBA Rates will either cut or add costs for FBA sellers with products priced under $10. The Small & Light Enrollment Page currently displays the following alert:

“On August 29, 2023, the FBA Small and Light program will end and Low-Price FBA rates will be introduced. Any Low-Price FBA rate eligible items will automatically receive the Low-Price FBA rates. Enrollment of new products into FBA Small and Light ended after July 17, 2023. For more information on Low-Price FBA, go to Low-Price FBA fees. For more information about these changes, go to FBA Small and Light closure FAQ.”

What Was Small & Light?

The Small & Light program was created to offer special discounts to FBA Sellers who sold “Small and Light” products. ASINs that measured 18 x 14 x 8 inches or less, weighed 12oz or less, and priced at $7 were eligible for the Small & Light Program. Enrollment of Small & Light has ended as of July 17, 2023.

When selling low-cost items via FBA – fees (which are fixed, regardless of your selling price) start to really eat into profit margins. Sometimes, profit becomes so low, or even in the negative, preventing Sellers from being able to sell the items through FBA without losing money. Check out our previous post to read more about the Small & Light program.

Why Did Amazon End Small & Light?

Amazon claims the reason is that Small & Light offered lower shipping speeds due to the lower fees, and that the new Low Price FBA Fees will result in faster shipping speeds for these products. We also wonder if Amazon began to see a decline in lower-priced products sold through their channel – and opted to discontinue the Small & Light Program and automatically lower fees for all eligible products priced under $10 for the sake of simplicity and customer satisfaction.

What is the New "Low-Price" FBA?

The Low-Price FBA Fees will automatically apply at the end of August (with Small & Light Fees ending August 28, 2023). All FBA Products priced under $10 will automatically begin to receive the lower fees (or higher, if you were enrolled in Small & Light). No action is required, and there isn’t a way to opt out; although, why would anyone want to opt out of lower fees?

Anyone previously enrolled in Small & Light will start paying about 30 Cents more per unit. Anyone who was not enrolled should begin saving about 77 Cents per unit sold via FBA. We recommend reviewing the Low-Price FBA fees Amazon Help Page for full details!

If you’re a client looking for more information, contact your Account Team! If you’re interested in learning more about how Blue Wheel can aid in your brand efforts in online marketplaces, schedule a consultation with our team, we would love to hear from you.

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