Amazon's FBA Small and Light Program Ends: What Sellers Need to Do

End of an Era: Small and Light Program Discontinuation

Amazon announced recently a significant change to its Fulfillment by Amazon (FBA) service: the discontinuation of the "Small and Light" program. The program has, for many years, provided sellers the opportunity to enroll small, lightweight, and low-priced products to receive lower FBA fees due to slower shipping speeds. However, as of August 29, 2023, Amazon will instead lower the standard FBA rates for all items priced below $10.

Benefits of the Change: Lower Fees and Faster Shipping

The change comes after learning how the program's lower fees have allowed sellers to offer an expanded range of low-priced items, and recognizing customer appreciation for improved shipping speeds. The new structure simplifies the process for sellers by automatically applying the reduced fees on their low-priced selection. Crucially, these products will now benefit from faster FBA delivery speeds that customers highly value. Additionally, the eligible items will be exempt from the 2023 holiday peak fulfillment fees, applied from October 15, 2023, through January 14, 2024.

Missed Opportunities: The Downside of the Change

However, the discontinuation of the Small and Light program does not come without its setbacks. The program was not opted into by all sellers, leading to potential opportunities for those who took advantage of its lower fees. Unfortunately, with the ending of this program, such 'hacks' will no longer be available, which comes as a disappointment to many.

New Fee Structure: What It Means for Sellers

The new low-price FBA rates will be on average $0.77 lower per item than the current FBA rates for the said products. For items previously enrolled in the Small and Light program and priced below $10, sellers will pay about $0.30 more per item than before but will now benefit from faster FBA fulfillment speeds. For products not enrolled in the program and priced under $10, this change translates to a fee reduction of about $0.77 per item, without a change in shipping speed. Products priced above $10 will continue with the standard FBA rates and shipping speeds.

Preparing for the Transition: Seller Recommendations

Amazon is providing a two-month transition period for sellers to review their product offerings, inventory status, and the new FBA rates.