Amazon Introduces New Fees for FBA Prep and Labeling Services Starting May 2024
Effective May 15 2024 Amazon adds per‑unit fees for FBA prep and labeling: $0.30 for each FNSKU label, $0.15 for poly‑bagging, $0.20 for bubble‑wrap, and $0.10 for taping. Sellers must audit current prep usage and compare these costs to third‑party options to protect margins, especially on items under $10.
Overview
Effective May 15 2024, Amazon will add per‑unit charges for its FBA preparation and labeling services. The new fees apply to sellers who rely on Amazon to bag, wrap, or affix barcode labels before inventory enters the fulfillment network. Because the added cost can erode margins on low‑priced items, sellers must reassess whether to keep using Amazon’s service, shift to an external prep center, or bring the work in‑house.
Key Points
- Fee rollout date — The updated prep and labeling price list becomes active on May 15 2024, giving sellers a short window to adjust their workflows.
- Barcode labeling charge — Each unit that Amazon labels with a FNSKU now incurs a flat fee (e.g., $0.30 per label for standard items).
- Packaging fees — New per‑unit rates apply to common prep tasks such as poly‑bagging ($0.15), bubble‑wrapping ($0.20), and taping ($0.10).
- Tiered pricing for volume — Sellers moving more than 10,000 units per month may qualify for a modest discount, but the baseline fees still affect all accounts.
- Cost‑benefit shift — The convenience of a single‑step “Amazon‑handles‑everything” model is now weighed against higher unit costs, especially for products priced under $10.
How the New Fee Structure Works
- Enable labeling in your FBA settings — In Seller Central, navigate to Settings → Fulfillment by Amazon and turn on the “Amazon‑labeling” toggle. For example, a seller of silicone kitchen tools activates the option, allowing Amazon to apply barcode labels during inbound processing.
- Select prep services per shipment — When creating a shipping plan, choose the specific prep tasks (e.g., poly‑bagging, bubble wrap) for each SKU. A seller shipping 5,000 units of scented candles might opt for bubble‑wrap only, triggering the $0.20 per‑unit charge for that service.
- Amazon applies fees at receipt — Once the inventory arrives at a fulfillment center, Amazon automatically deducts the applicable prep and labeling fees from the seller’s account balance. If the same candle shipment includes both labeling and bubble‑wrap, the system records $0.30 + $0.20 = $0.50 per unit, which appears on the daily transaction report.
Analysis & Recommendations
Why This Matters
The new fees can erode margins on low‑priced products; a seller sending 200 units now faces an extra $90 (200 × ($0.30+$0.15)). High‑volume sellers (e.g., 25,000 units) must evaluate whether third‑party prep at $0.35 per unit is cheaper than Amazon’s $0.45 total fee.
Key Takeaways
- Labeling fee is $0.30 per unit starting May 15 2024.
- Packaging fees are $0.15 per poly‑bag, $0.20 per bubble‑wrap, and $0.10 per taping.
- Volume discount applies only above 10,000 units/month; baseline fees affect all sellers.
- Example impact: 200‑unit soap shipment adds $90 in prep costs ($0.45 per unit).
Recommended Actions
- →In Seller Central go to Reports → Prep Services and export the current prep usage for all SKUs.
- →Calculate the new per‑unit cost using the $0.30 label, $0.15 bag, $0.20 wrap, $0.10 tape rates and compare to third‑party quotes.
- →If switching, disable the Amazon‑labeling toggle under Settings → Fulfillment by Amazon and schedule the transition at least two weeks before May 15.
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