An Overview of Amazon's 2024 Seller Fee Changes

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Understanding Amazon's fee changes in 2024 is like finding your way through a maze. There's a lot to figure out, but with the right knowledge, you can navigate it successfully. These changes are all about making things run smoother, being more eco-friendly, and helping sellers like you do better. Let's break down these adjustments and see how you can make the most of them in your online business journey.


 Main Updates

  • Product Size Tiers: Better Categorization
  • Referral Amazon Fees: Adjustments for Apparel
  • Inbound Placement Service and Defect Fees: Simplifying Inventory and Quality
  • FBA Fulfillment Fees: Managing Costs Better
  • Ships in Product Packaging Program: Eco-Friendly Discounts
  • Prep Service Fees: Keeping Products Safe
  • Removal/Disposal Fees: Managing Old Inventory
  • Returns Processing Fee: Ensuring Quality
  • Conclusion: Adapting to Change


Product Size Tiers: Better Categorization

 

In 2024, Amazon has overhauled its size categorization system for FBA products, moving beyond the broad "Oversized" label to more specific tiers such as Large Bulky and Extra-Large. This nuanced classification allows for more accurate fee assessments based on a product’s dimensions and weight.

For example, a product previously categorized under a generic "Oversized" category may now be classified under "Large Bulky," potentially resulting in different fee structures. This ensures fairer fee allocation and benefits sellers with diverse product sizes and weights. By categorizing products more precisely, Amazon enhances the transparency and predictability of fees, allowing sellers to better manage their costs and pricing strategies.

 

Referral Amazon Fees: Adjustments for Apparel

 

Amazon is making targeted adjustments to referral fees for apparel items, particularly for those priced under $20. Sellers will see reduced referral fees for clothing items priced below $15 and those in the $15-$20 range.

For instance, a t-shirt priced at $18, which previously incurred a higher referral fee, will now have a lower fee, enabling sellers to price their products more competitively. This fee adjustment aims to support sellers in the highly competitive apparel market, encouraging them to offer more competitively priced items. Lower referral fees help sellers reduce costs, which can be passed on to consumers through better pricing, thus enhancing the overall shopping experience.

 

Inbound Placement Service and Defect Fees: Simplifying Inventory and Quality

 

To streamline inventory management, Amazon now offers Premium and Discounted service levels for inbound inventory placement. Sellers can choose a service level that best fits their operational needs and budget constraints. Additionally, a new fee structure has been introduced to encourage timely and accurate shipments, reflecting Amazon's commitment to high service standards.

For example, sellers opting for the Premium service might benefit from quicker processing times, while those choosing the Discounted service can keep costs lower. This change underscores the importance of accurate inventory handling and efficient shipping practices, benefiting sellers by reducing potential delays and improving customer satisfaction.

 

FBA Fulfillment Fees: Managing Costs Better

 

Amazon's adjustment of FBA fulfillment fees based on new size categories will impact sellers of various products, particularly in the apparel and dangerous goods sectors. Standard-sized items will see a reduction in fulfillment fees, while fees for larger items will be recalibrated according to their new categories. 

This realignment aims to better match fulfillment fees with the actual costs associated with handling and storing items of different sizes. Sellers of large or bulky products should review these changes to understand their cost implications. This adjustment helps ensure fair pricing across diverse product types and reflects Amazon’s efforts to optimize its fulfillment network, offering competitive rates for sellers.

 

Ships in Product Packaging Program: Eco-Friendly Discounts

 

Amazon is encouraging sellers to adopt eco-friendly packaging through its Ships in Product Packaging program, previously known as Ship in Own Container (SIOC). Sellers using sustainable packaging solutions will benefit from discounts on fulfillment costs. For example, a seller who switches to recyclable or biodegradable packaging materials may receive a discount, reducing overall fulfillment expenses. 

This initiative aligns with Amazon’s broader sustainability goals, promoting environmentally responsible practices among its sellers. By incentivizing eco-friendly packaging, Amazon aims to reduce its environmental impact while providing cost savings to sellers, supporting a more sustainable ecommerce ecosystem.

 

Prep Service Fees: Keeping Products Safe

 

Amazon has revised its prep service fees to reflect changes in packaging material costs. The price of bubble wrap has increased to ensure better protection for products during shipping, while labeling fees remain unchanged to maintain clear identification of items. 

For instance, the cost for bubble-wrapping a fragile item has risen, but this ensures that items are better protected from damage. Maintaining consistent labeling fees helps minimize shipping errors, enhancing customer satisfaction. Sellers should incorporate these changes into their budgeting and pricing strategies to ensure their products are adequately protected and accurately labeled, reducing the risk of damage and returns.


Removal/Disposal Fees: Managing Old Inventory

 

To encourage better inventory management, Amazon is updating its fees for removing or disposing of inventory. These adjustments are designed to incentivize sellers to prioritize inventory turnover and avoid the accumulation of excess or obsolete stock. 

For example, fees for removing outdated products from Amazon’s warehouses have been increased, prompting sellers to manage inventory more efficiently. By aligning removal and disposal fees with the actual costs of handling inventory, Amazon encourages proactive inventory management. 


Sellers should plan for timely removal or disposal of excess stock to minimize associated fees, improving overall operational efficiency and reducing costs.

 

Returns Processing Fee: Ensuring Quality

 

A new fee is added for handling returns in most categories, except for clothes and shoes. This encourages sellers to focus on quality to reduce returns and make customers happier. This fee adjustment incentivizes sellers to prioritize product quality and customer satisfaction, reducing the incidence of returns and improving the overall shopping experience.

 

By introducing a returns processing fee, Amazon aims to deter sellers from listing low-quality or defective products, thereby reducing the frequency of returns and associated costs. Sellers should focus on providing accurate product descriptions, high-quality images, and excellent customer service to minimize returns and mitigate the impact of this fee on their bottom line.

 

Conclusion: Adapting to Change

 

As Amazon sellers, it is crucial to understand these fee changes and adapt strategies accordingly. By managing costs better, optimizing inventory, and offering high-quality products and services, sellers can navigate the evolving landscape of ecommerce with confidence and success. 


These adjustments reflect Amazon's ongoing efforts to support sellers, enhance customer satisfaction, and promote sustainability across its platform. Staying informed and proactive in response to these changes will help sellers maintain competitiveness and achieve long-term success in the dynamic ecommerce market.

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The Do’s and Don’ts of Amazon Customer Service to Protect Your Account

By William Fikhman • April 15, 2025
In today’s hyper-competitive ecommerce landscape, where Amazon dominates as the go-to destination for online shopping, customer service isn’t just a perk – it’s a core pillar of brand protection and long-term success. Every message, reply, and interaction is a direct reflection of your brand. Get it right, and you earn loyalty. Get it wrong, and you invite returns, negative reviews, and even account risks. At CMO, we’ve helped hundreds of Amazon sellers scale their operations and avoid costly mistakes, and one of the biggest recurring issues we see is poor customer support. So if you’re serious about protecting your account health, maintaining your seller metrics, and keeping your customers happy, here are the must-know do's and don’ts of Amazon customer service. What is Customer Support for Amazon FBA Sellers? "Doesn’t Amazon handle customer service for FBA orders?" Technically, yes – but only to a point. Amazon will manage logistics-related inquiries, such as shipping times and returns. However, the bulk of pre-sale and post-sale support still falls on you . That includes answering product-specific questions, clarifying usage, troubleshooting post-delivery issues, and even reassuring hesitant shoppers before they buy. In other words, if you're not actively managing your customer experience, you're risking: Bad reviews High return rates Lost sales Long-term account health issues The Benefits of Positive Customer Support Exceptional support doesn’t just prevent problems. It actively boosts your brand. Increases positive reviews : Happy customers are far more likely to leave glowing feedback. Drives word-of-mouth marketing : Delighted shoppers love to share good experiences. Reduces returns : Most return requests are a result of confusion, not dissatisfaction. Clear communication solves that. Boosts conversions : Prompt answers can help close a sale that would have otherwise gone to a competitor. Improves account health : Amazon metrics like Order Defect Rate (ODR) depend on satisfied customers. Do: Prioritize Fast Response Times Speed matters. In a world where most people get Amazon deliveries in less than 48 hours, slow replies feel out of touch. Aim to respond to all customer inquiries within 24 hours – and faster if possible. Pre-sale questions should be top priority, as these directly affect conversions. Even if you don’t have the answer yet, a simple message like, "Thanks for reaching out! I'm looking into this and will follow up shortly," goes a long way. Don't: Send rushed, low-effort responses just to meet time requirements. Customers can tell when you're phoning it in. If you need more time, say so – then follow through. Do: Hire Customer Support Reps as You Scale Your time is valuable. As your store grows, the last thing you want is to spend hours answering customer messages when you should be focusing on strategy, marketing, and sourcing. Professional customer support reps can: Increase efficiency Improve response quality Boost customer satisfaction Prevent burnout Don't: Try to do it all yourself forever. And don’t hire cheap overseas labor without proper training – low-cost support often results in low-quality experiences that cost you more in the long run. Do: Use an Autoresponder to Acknowledge Messages Autoresponders are a simple, effective way to let customers know you've received their message. This provides reassurance, sets expectations, and buys you time to write a thoughtful reply. A good autoresponder might say: "Thanks for reaching out! We received your message and will get back to you within 24 hours. In the meantime, here’s a link to our FAQ that might have what you need." Don't: Leave customers in the dark with silence. That’s a surefire way to spark impatience and, eventually, negative feedback. Do: Create Templates for Common Questions Streamline your process. If you get the same 10 questions every week, it makes sense to have high-quality, pre-written responses ready to go. Templates for shipping, product use, compatibility, and troubleshooting can save time and keep responses consistent. Don’t: Use templates as a crutch. Customers can spot copy-paste jobs a mile away. Always customize your response to match their question. Do: Show Empathy – Especially with Upset Customers Empathy builds trust. Customers don’t just want a refund or replacement – they want to be heard. When someone is upset, acknowledge their frustration and show you care. "I completely understand how frustrating that must be. I’d be upset too. Let’s work together to find a solution." This simple human touch diffuses tension and opens the door for resolution. Don’t: Get defensive. Avoid blaming the customer or minimizing their experience. Your job is to fix the problem, not argue. Do: Personalize Every Interaction Personalization is powerful. Refer to the customer by name. Reference the exact product they bought. Mention specific details from their message. These little touches show you’re paying attention. Example: "Hi Sarah, I saw your question about the 12-piece kitchen set you ordered last week. I'm so sorry to hear a piece was missing." Don’t: Treat all customers like ticket numbers. Generic, impersonal messages damage your reputation. Do: Add Customer Q&A to Your Listings If multiple people are asking the same question, that’s a sign your listing needs an update. You can preempt common objections and concerns by answering them directly in your bullet points or A+ Content. This also boosts conversion rates, as hesitant shoppers can find reassurance before they reach out. Don’t: Let your listing gather dust. Update it regularly based on real customer feedback. Do: Cross-Sell When Relevant Smart support agents don’t just solve problems – they grow revenue. If someone asks about a backpack’s compatibility with a laptop sleeve you also sell, let them know. If they love your product, recommend the next item in the bundle. Don’t: Push products just for the sake of it. Cross-selling should feel like help, not a hard sell. Bonus Tips for Amazon Customer Service Excellence Document Everything : Keep records of all customer conversations in case of A-to-Z claims or chargebacks. Use Buyer-Seller Messaging Properly : Stay compliant with Amazon's policies. Avoid promotional content or outside links. Monitor Feedback Daily : Resolve issues quickly to maintain a strong seller rating. Learn From Negative Reviews : Every 1-star review is an opportunity to improve your product or service. Final Thoughts At CMO, we always remind our clients: your Amazon business is only as strong as your customer support. Support is more than an afterthought. It’s a marketing channel. A retention tool. A reputation builder. A safety net against returns and poor reviews. If you want to stay competitive in the Amazon marketplace, customer service must be built into your operations from Day 1. Whether you’re a new seller or a top 1% brand, these do's and don’ts should guide your every customer interaction. Need help building a customer support system that scales with your brand? Contact CMO here and let’s elevate your Amazon presence the right way.  Let’s protect your brand, grow your reviews, and keep your customers coming back.
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Outsourcing Your Amazon PPC: Why It’s the Best Move for Long-Term Profitability

By William Fikhman • April 15, 2025
Amazon has become the go-to marketplace for both shoppers and sellers. But as the competition intensifies, simply having a great product and a well-optimized listing isn’t enough. To win the digital shelf and convert clicks into customers, Pay-Per-Click (PPC) advertising is essential. However, effective Amazon PPC management is a full-time job. With constant algorithm updates, shifting bid strategies, keyword research, campaign structuring, and performance tracking, it’s easy for sellers to get overwhelmed — or worse, burn through ad spend without a positive return. That’s where outsourcing comes in. Whether you're considering a specialized virtual assistant (VA) or a professional agency, handing over your PPC efforts to experts is one of the smartest long-term investments you can make. Here’s why. 1. You’ll Get a Strategy — Not Just Ads Most DIY advertisers focus on basic tasks like running Auto campaigns or targeting high-volume keywords. A PPC expert does more than just place ads — they build strategies. When you outsource to an agency or specialist VA, you gain access to structured plans built around: Product lifecycle (launch, growth, maturity) Profitability goals Inventory health Market trends Strategic campaign layering (branded, competitor, category), dayparting, negative keyword sculpting, and advanced tactics like Single Keyword Campaigns (SKAGs) become part of the plan — driving precision and performance. 2. Cost Efficiency: Save More by Spending Wisely Ironically, many sellers resist outsourcing due to cost, but it’s usually DIY campaigns that result in wasted spend. A poorly managed PPC account can eat up profits through: Irrelevant clicks Poor keyword targeting Overbidding or underbidding Ignoring seasonal trends PPC experts know how to maximize every dollar . They focus on ACoS (Advertising Cost of Sales) and TACoS (Total Advertising Cost of Sales) to ensure profitability — not just visibility. In many cases, outsourcing reduces your total ad spend while increasing sales volume, because the ad dollars are being used more effectively. 3. Time is Money: Free Yourself from the Dashboard How many hours per week do you spend: Pulling reports? Checking keyword performance? Adjusting bids? Launching campaigns? These tasks add up fast — especially if you’re juggling inventory management, customer service, listing optimization, and logistics. Outsourcing frees up your time so you can focus on scaling your business, sourcing new products, or even just taking a breath. 4. Stay Ahead of the Curve with Expertise and Tools PPC platforms evolve constantly. Amazon adds new ad types like Sponsored Display, changes to targeting options, or introduces programmatic features — and sellers who don’t adapt fall behind. An agency or seasoned VA is constantly learning, testing, and optimizing. They often have access to: Premium tools like Helium 10, Pacvue, Perpetua, or DataHawk Automation scripts for bid optimization Competitive intelligence platforms Internal Amazon beta programs Keeping up with these trends on your own is a full-time job. Let the pros stay ahead so you don’t fall behind. 5. Better Decisions with Data-Driven Insights PPC management isn’t guesswork. Expert managers track and analyze data relentlessly to drive better decisions. They dive deep into: Keyword conversion rates Search term reports Placement analytics Ad group structure performance A/B testing results This data informs decisions not only for PPC but also for your product listings , pricing , and even inventory forecasting . With the right team, your PPC efforts become an integrated part of your overall business strategy — not just an isolated channel. 6. Custom Campaigns for Every Product Different products require different PPC approaches. Launching a new ASIN, pushing a slow mover, or defending your brand all demand unique strategies. A specialized VA or agency can tailor: Aggressive launch strategies with low ACoS goals Defensive campaigns to fend off competitors Long-tail keyword strategies for niche products Seasonal promotions and lightning deal amplification These nuances make the difference between an okay campaign and a highly profitable one. 7. Scalability Without Growing Pains As your catalog grows, managing PPC in-house becomes exponentially harder. More ASINs mean more campaigns, more keywords, and more data to analyze. An outsourced team is built to scale with you. Whether you're adding 10 new SKUs or launching in a new marketplace (like Amazon UK or CA), they can expand your ad strategy without a hitch — ensuring performance doesn’t drop as your store grows. 8. Gain an Edge with Cross-Functional Support Some agencies go beyond PPC — offering cross-functional support like: Listing optimization (images, copy, A+ content) Brand storefront design DSP advertising (Demand Side Platform) External traffic strategies (Google Ads, influencers) Brand protection services This full-service model means your advertising doesn’t exist in a silo. Everything works together to drive growth — from your keywords to your creative to your brand integrity. 9. Avoid Costly Mistakes and Amazon Violations Amazon has strict advertising policies. One mistake — like using restricted keywords or violating category rules — can get your ads suspended, or worse, get your account flagged. PPC professionals know how to operate within Amazon’s rules while pushing the envelope to win market share. They can also navigate ad suspensions or technical issues faster than a solo seller fumbling through support tickets. 10. Peace of Mind = Better Business Decisions Lastly, outsourcing gives you peace of mind . Instead of stressing over ACoS or chasing keyword changes, you can make confident, data-driven decisions about your business. You’ll know your ads are in good hands — and that your PPC engine is driving profitability, not draining it. In Conclusion Amazon PPC is no longer a set-it-and-forget-it game. It's a fast-paced, data-heavy, constantly evolving battlefield. If you want long-term success — not just short-term wins — investing in expert PPC management is one of the smartest decisions you can make. Whether you go with a boutique agency or a trusted VA, outsourcing your PPC is about more than delegation — it’s about elevating your brand , improving margins, and freeing your time to focus on growth. Don’t Wait Until It’s Too Late. Let CMO Secure Your Brand Today. 🔒 Book a FREE Consultation with CMO to discuss how we can: ✔️ Enroll you in Amazon Brand Registry , Transparency & Project Zero ✔️ Remove unauthorized resellers and counterfeiters ✔️ Ensure your brand is protected with an expert-led strategy 📞 Schedule Your Free Strategy Call Now! 👉 Your brand’s success starts with protection. Let CMO handle the hard work while you focus on growing your Amazon business. #AmazonBrandProtection #BrandRegistry #CMOServices #IPProtection #EcommerceSecurity #ChiefMarketplaceOfficer #CMO