Amazon is going to charge a substantially higher amount for its Fulfillment by Amazon (FBA) service during the peak months of November and December. Sellers who outsource their fulfilment to Amazon will pay double for the service around the holidays. With this, Amazon wants to prevent partners from massively stocking products in the etail giant's warehouse during this busy period.
According to Internet Retailer, this forces sellers to decide now how they will store their products. They have to be selective in the products they stock and decide in advance which products will score well during the holiday season. Last year in November and December, it cost 72 cents per cubic foot (0.0283 m3) for standard products and 57 cents per cubic foot for larger products. This will now be increased to $2.25 per cubic foot and $1.15 for larger products. In 'normal months' (between January and September), the etailer charges 54 and 43 cents, respectively.
External sellers face additional costs as a result, potentially making Amazon less attractive as a fulfilment partner. However, there are few alternatives for sellers. So they will have to absorb the costs themselves or pass them on to consumers.
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