A few days ago, Amazon officially announced that it will close the Small and Light Program in the United States on August 29, 2023 (the day when the new Amazon logistics rates for low-priced goods take effect). 1. What will happen to the FBA Small and Light program? On August 29, 2023, the FBA Small and Light program will end, and then low FBA rates will be introduced. The new rates will make it easy for every seller to enjoy low fees for low-priced products, while also providing the FBA delivery speeds that buyers love. Any eligible products will automatically enjoy the low rates and will not be affected by the 2023 peak season delivery fees. Products enrolled in the Small and Light program will continue to be charged Small and Light rates until August 28. FBA Small and Light will no longer accept new product registrations after July 17, 2023. 2. How do the new low-priced FBA rates work? For products priced under $10, the new low-priced FBA rates will offer a $0.77 discount compared to standard FBA rates. If your products are enrolled in the Small and Light program and qualify for low-priced FBA rates, you’ll pay an average of $0.30 more per unit, but they’ll be delivered at the same speed as standard FBA rates. For items enrolled in the Small and Light program that do not qualify for low-priced FBA rates (items priced between $10-12), standard FBA shipping rates and delivery speeds will automatically be applied. 3. Will items with low-priced FBA rates appear to customers as Prime? The Prime badge experience will be the same as for standard FBA items. This adjustment will have the greatest impact on sellers whose products are priced between $10 and $12 . Sellers whose products are priced in this range will face a dilemma of "balancing costs by raising prices" or "reducing prices to reduce profit margins to enjoy low rates." Given the current economic environment of consumption downgrade, many sellers believe that the latter will account for the majority of sellers. |
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