Amazon Canada FBA Fee Overhaul: New Charges, Discounts, and Inventory Penalties
Starting Feb 2024 Amazon Canada raises FBA fulfillment fees by about $0.20 CAD per unit (average $0.22 CAD increase). New discounts include a $0.55 CAD low‑price reduction and SIPP savings of $0.05‑$1.68 CAD, while a $0.30 CAD under‑stock surcharge begins Apr 1 and aged‑inventory penalties start Apr 15.
Overview
Amazon is rolling out a series of FBA fee adjustments for the Canadian marketplace beginning in February 2024. While the average increase per unit is about $0.22 CAD, the overhaul introduces new discounts, a low‑inventory surcharge, and tighter aged‑inventory penalties that directly affect cash flow and stock‑planning. Sellers who adapt quickly can offset the added costs or even improve their margins.
Key Points
- Average fee rise — Fulfillment fees climb roughly $0.20 CAD per unit, resulting in a net $0.22 CAD increase across most product categories.
- Low‑price discount — Items priced under $11 CAD qualify for a $0.55 CAD reduction in the fulfillment charge, easing pressure on low‑margin listings.
- SIPP savings — Products that ship in their own packaging (Ships In Product Packaging) can save between $0.05 and $1.68 CAD per unit, depending on size and weight.
- Under‑stock surcharge — Beginning April 1, sellers with fewer than four weeks of inventory on hand for envelope or standard‑size items will incur a new fee.
- Aged inventory penalties — From April 15, inventory stored 271‑365 days will attract a surcharge, and fees for stock older than 365 days increase further.
- Returns processing fee — Starting June 1, categories with high return rates—such as apparel and shoes—will be charged an additional processing fee per return.
What's Changing
- Baseline fulfillment fee increase — Amazon adds a modest bump to the core pick‑and‑pack charge; for a 12‑oz, standard‑size item the fee moves from $2.50 CAD to $2.70 CAD, illustrating the $0.20 CAD average lift.
- Low‑price product discount — A $0.55 CAD reduction applies to any SKU listed at $10.99 CAD or lower; a $9.99 CAD kitchen gadget that previously paid $1.80 CAD in fees now pays $1.25 CAD.
- Ships In Product Packaging (SIPP) discount — When a seller ships a 3‑lb, medium‑size toy in its original box without an extra Amazon box, the per‑unit fee drops by $0.90 CAD, compared with the $1.68 CAD maximum saving for heavier items.
Analysis & Recommendations
Why This Matters
The $0.30 CAD per‑unit surcharge for less than four weeks of stock forces sellers to keep larger buffers, increasing inbound shipping costs. Conversely, the $0.55 CAD low‑price discount and up to $1.68 CAD SIPP savings can offset the $0.22 CAD average fee rise if applied correctly.
Key Takeaways
- Average fulfillment fee rises $0.20 CAD per unit (net $0.22 CAD increase) across most categories.
- Low‑price discount of $0.55 CAD applies to SKUs priced ≤ $10.99 CAD.
- Under‑stock surcharge of $0.30 CAD per unit starts Apr 1 for inventory under four weeks.
- Aged inventory penalty adds $0.15 CAD per day after 300 days, effective Apr 15.
Recommended Actions
- →In Seller Central, go to Settings > Fulfillment Fees to update cost models with the $0.22 CAD increase and new surcharges.
- →Run a catalog report (Inventory > Manage Inventory > Download) to flag SKUs ≤ $10.99 CAD and enable the low‑price discount.
- →Create a replenishment plan in Inventory > Restock Inventory to maintain a four‑week buffer for envelope and standard‑size items, avoiding the $0.3...
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