Amazon Canada Raises Referral and FBA Fees, Introduces Fuel Surcharge
Effective this quarter, Amazon.ca raises referral fees by up to 0.5% for apparel and 0.3% for electronics, adds CAD 0.30 per standard‑size unit and CAD 1.20 per oversized shipment to FBA fulfillment fees, bumps storage rates to CAD 0.90 per cubic foot for Oct‑Dec, and applies a 3% fuel & inflation surcharge on all fulfillment fees.
Overview
Amazon Canada is rolling out a comprehensive fee revision that touches referral rates, Fulfillment by Amazon (FBA) charges, storage costs, and removal fees. In addition, a new fuel and inflation surcharge will be applied to all Canadian sellers on an ongoing basis. The changes take effect this quarter, and sellers must adjust pricing, inventory, and fulfillment strategies to protect margins.
Key Points
- Referral fee rise — Category‑specific percentages increase by up to 0.5 % for apparel and 0.3 % for electronics, directly adding to the cost of each sale.
- FBA fulfillment fee hike — Standard-size items now cost an extra CAD 0.30 per unit, while oversized items see a CAD 1.20 increase per shipment.
- Storage fee adjustment – Monthly storage rates for October‑December climb from CAD 0.75 to CAD 0.90 per cubic foot, and long‑term fees jump 15 % across all Canadian fulfillment centers.
- Removal and disposal fee boost – Pulling a standard‑size unit from a Canadian warehouse now costs CAD 0.50, compared with CAD 0.35 previously.
- Fuel & inflation surcharge – A variable charge, currently set at 3 % of the fulfillment fee, will be applied to every FBA order and may fluctuate with market conditions.
- Marketplace growth backdrop – Third‑party sellers shipped more than 110 million items on Amazon.ca in the latest period, and the seller base grew 14 % year‑over‑year.
What's Changing
- Referral fee update — Amazon recalibrates the percentage taken from each sale; for example, a CAD 100 kitchen gadget in the “Home & Kitchen” category will now incur a CAD 15.00 referral fee instead of CAD 14.50.
- FBA fulfillment fee increase — The per‑unit charge for standard items rises; a seller shipping 500 units of a CAD 25 toy will see the fulfillment cost climb from CAD 3.00 per unit to CAD 3.30, adding CAD 150 to total expenses.
- Storage fee revision — Monthly storage is billed at a higher rate per cubic foot; a retailer storing 2 cubic meters of winter apparel from October to December will pay CAD 1,800 instead of CAD 1,500.
Analysis & Recommendations
Why This Matters
The combined fee hikes can erode margins by several dollars per SKU, forcing sellers to re‑price, trim inventory, or shift to merchant‑fulfilled models. With over 110 million items shipped and a 14% seller‑base growth, the impact spreads across many Canadian sellers.
Key Takeaways
- Referral fees increase up to 0.5% for apparel and 0.3% for electronics.
- Standard‑size FBA fulfillment fee rises by CAD 0.30 per unit; oversized fee adds CAD 1.20 per shipment.
- Monthly storage rates for Oct‑Dec go from CAD 0.75 to CAD 0.90 per cubic foot.
- A variable fuel & inflation surcharge of 3% is applied to every fulfillment fee.
Recommended Actions
- →Update pricing in Seller Central > Pricing > Manage Pricing to incorporate the extra CAD 0.30 fulfillment cost and 3% surcharge.
- →Re‑run cost calculations in Seller Central > Reports > Fulfillment > Fee Preview to see new total fees per SKU.
- →Set up automated email alerts in Seller Central > Notifications > Fee Schedule Updates to be notified of any surcharge changes.
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