Amazon UK Multi-Channel Fulfilment Fees Rising 5.6% on Average
Amazon UK Multi‑Channel Fulfilment fees rise an average of 5.6% on 16 May 2024. New small‑parcel bands (150 g‑3.9 kg) and an extra‑large envelope tier are added, while envelopes under 460 g stay unchanged. Expedited speeds incur larger bumps.
Overview
Amazon is raising its United Kingdom Multi‑Channel Fulfilment (MCF) fees by an average of 5.6 % starting May 16 2024. The adjustment adds several new size bands to better match charges with product weight and dimensions. Sellers who rely on MCF to ship orders from e‑bay, Shopify, or their own websites need to reassess per‑unit costs and margin calculations.
Key Points
- Average fee rise of 5.6 % — All UK MCF rates increase, though the exact impact varies by SKU, size tier, and delivery speed.
- Envelope tier under 460 g unchanged — Standard‑speed envelopes lighter than 460 g keep their current price, protecting sellers of very small items.
- New small‑parcel bands (150 g‑3.9 kg) — Six additional tiers introduce finer pricing for the weight range that covers most consumer goods.
- Extra‑large envelope tier added — A new category bridges the gap between existing envelope and parcel classifications, reducing mismatched pricing.
- Expedited speeds see larger bumps — Faster delivery options (two‑day, next‑day) receive higher percentage increases than standard‑speed services.
- Margin pressure for high‑volume sellers — Even a modest per‑unit rise can erode profitability when thousands of orders are fulfilled each month.
How Multi‑Channel Fulfilment Works
- Inventory centralisation — Sellers send stock to Amazon’s fulfillment centres; the same pool is used for both Amazon sales and orders from external platforms. Example: A Shopify store pulls products from the same FBA stock that fulfills Amazon Prime orders.
- Order routing — When a non‑Amazon sale occurs, the seller creates an MCF shipment request in Seller Central, selecting the desired delivery speed. Example: An eBay buyer purchases a handheld blender, triggering an MCF request for two‑day delivery.
- Pick, pack, ship — Amazon staff locate the item, package it according to the appropriate size band, and hand it to the carrier.
Analysis & Recommendations
Why This Matters
The 5.6% average increase starting 16 May 2024 lifts per‑unit MCF charges – a 1.2 kg parcel moves from £2.20 to £2.45 (standard) or £2.80 (two‑day). High‑volume sellers can lose profit on thousands of orders, forcing price or shipping‑method adjustments.
Key Takeaways
- Average UK MCF fees increase by 5.6% effective 16 May 2024.
- Envelope tier under 460 g remains unchanged, protecting very small items.
- Six new small‑parcel weight bands (150 g‑3.9 kg) and an extra‑large envelope tier are introduced.
- Expedited delivery options see larger percentage hikes; e.g., two‑day fee for a 1.2 kg parcel rises to £2.80.
Recommended Actions
- →Export your recent MCF order list in Seller Central > Reports > Fulfillment > MCF shipments, map each SKU to the new size bands, and recalculate fees.
- →Adjust product prices or shipping charges in your external channels (Shopify, eBay) to reflect the higher MCF cost, using the new fee amounts.
- →Review expedited delivery options in Seller Central > Settings > Shipping Settings and consider limiting two‑day service for heavy SKUs.
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