FBA Small and Light program deprecation
Amazon ended the U.S. Small and Light (SnL) program on August 29 2023 and the Canadian version on September 2 2023, replacing it with a Low‑Price fee schedule that calculates fulfillment fees per unit based on size tier and actual weight (e.g., ≤ 16 oz for standard‑size). The new model can raise fees for heavier items while keeping similar costs for light SKUs.
Overview
Amazon retired the United States FBA Small and Light (SnL) program on August 29 2023 and introduced a Low‑Price fulfillment fee structure in its place. The same shift reached Canadian sellers on September 2 2023. The change forces merchants who previously depended on SnL for cheap, lightweight items to adopt the new rate card or rethink how they fulfill those products.
Key Points
- Program end dates — The SnL program stopped for U.S. sellers on August 29 2023; Canadian sellers saw the same termination on September 2 2023.
- New pricing model — Amazon now uses a Low‑Price fee schedule that calculates charges based on size tier and actual weight instead of a flat SnL rate.
- Eligibility adjustments — Items that met the SnL criteria (price ≤ $7, weight ≤ 12 oz, standard‑size packaging) must now satisfy the Low‑Price limits, which broaden the price range but tighten weight caps.
- Seller communication — Amazon emailed affected merchants and refreshed the Seller Central help articles, pointing sellers to the Low‑Price fee reference page.
- Margin implications — Early feedback indicates many products see fees similar to the old SnL charge, while heavier units may incur noticeably higher costs.
- Conversion aid — A “Convert to Low‑Price” button appears in the inventory management view, allowing bulk migration of listings.
How Low‑Price FBA Rates Work
- Check eligibility — Verify each SKU fits within the Low‑Price size and weight thresholds (e.g., standard‑size, ≤ 16 oz). A 3 × 3 × 1 in paperback priced at $5 would qualify, whereas a 20‑oz snack pack would not.
- Select the Low‑Price rate card — In Seller Central go to Settings → Fulfillment by Amazon → Fee Preview and pick the “Low‑Price” option. The tool then shows a per‑unit charge that bundles storage, pick‑and‑pack, and outbound shipping. For a 10‑oz toy listed at $4, the preview might display a $2.30 total fee.
- Apply the new fee to listings — Use the “Convert to Low‑Price” bulk action or edit individual products to switch to the new structure. The updated fee appears in the “Fulfilled by Amazon” column within roughly 24 hours.
Analysis & Recommendations
Why This Matters
Merchants who relied on the flat $2.50 SnL fee must now recalculate costs; a 12‑oz gadget may jump from $2.50 to $3.10, eroding profit. Adjusting packaging or list prices is essential to stay competitive before the Sep 2 deadline.
Key Takeaways
- SnL program termination dates: U.S. on Aug 29 2023, Canada on Sep 2 2023.
- Low‑Price fee schedule uses size tier and weight (standard‑size ≤ 16 oz) instead of a flat rate.
- Example fee change: a 12‑oz kitchen gadget may increase from $2.50 to $3.10 under Low‑Price.
- A “Convert to Low‑Price” bulk button is available in the inventory management view for migration.
Recommended Actions
- →Export an inventory report in Seller Central, filter SKUs by current SnL status, and run the Low‑Price fee preview (Settings → Fulfillment by Amazo...
- →Use the “Convert to Low‑Price” bulk action in the inventory page to migrate listings before Sep 2 2023.
- →If a SKU exceeds the 16 oz limit, redesign packaging (e.g., switch to slimmer cardboard) and re‑run the fee preview to confirm lower fees.
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