Topic of the Week - Amazon Modifies FBA Fees and Announces Prime Day
Amazon is making changes to its Fulfilment by Amazon (FBA) programme, reducing package fees for online sellers in the clothing, accessories, backpacks, and handbags categories. The fees will now be calculated based on package size category and unit weight, rather than the higher of unit weight and volume weight. This change will apply to all European markets of Amazon and will also affect the Fulfilment Network in Europe, remote fulfilment between the UK and the EU, and the 'shipped without additional Amazon packaging' programme in Spain, Germany, Italy, and the UK.
Additionally, Amazon is introducing seven package size categories, replacing the previous 16 size categories, and will refund return processing fees for products with high return rates in these categories. This change is expected to benefit small and medium-sized businesses, which make up over 60% of sales on Amazon's marketplace.
Prime Day Announcement and Tariff Concerns
Amazon has announced its Prime Day event, which will take place in July, offering "deep discounts" across over 35 categories, including electronics, beauty, and apparel. However, some small and medium-sized businesses are pulling out of the event or reducing the scope of discounted merchandise due to concerns over tariffs and profit margins.
Amazon has stated that it has had a "strong response" from its selling partners and is working to support them in adapting to the developing environment while maintaining low prices for customers. However, the White House has responded negatively to Amazon's plan, calling it a "hostile and political act" and encouraging Americans to "buy British".
Consumer expectations have fallen 32% this year, partly due to high tariffs, and expectations for inflation have risen to 6.5%, the highest level since 1981. Amazon has not responded to questions about the White House's comments.
Overall, Amazon's modifications to its FBA fees and Prime Day announcement are aimed at supporting small and medium-sized businesses and maintaining low prices for customers, despite the challenges posed by tariffs and consumer uncertainty.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Amazon eCommerce stats
- Amazon accounts for around 42.1% of the US e-commerce market share.
- Around 80% of Amazon sellers use Fulfillment by Amazon (FBA).
- There are over 240 million Amazon Prime members globally.
- Global e-commerce sales are expected to reach 8.1 trillion by 2025, up from 7.3 trillion in 2024.
- The average US tariff rate has increased to 4.5% in 2025, up from 4.2% in 2024.
That’s all for this week…
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