Raising rates at the beginning of each new year has become the status quo for businesses in the delivery services industry.UPS, FedEx, and USPS have already announced their rate increases and additional surcharges for 2025. (If you missed it, we also shared a way to minimize the impact of those rate hikes.) As the major carriers prepare for significant increases, Amazon is making news because it's chosen not to increase fees on US Referral and Fulfillment by Amazon. Today, we'll look at what will and won't change for Amazon sellers in the new year.

The Amazon announcement for US Referral and Fulfillment by Amazon fees

In mid-November, Amazon released a statement thanking its sellers for their "partnership and the tremendous innovation and customer benefit that we have delivered together."

The tech giant's gratitude wasn't just an empty platitude. In its statement, Amazon said that in 2025, it wants "to focus on simplicity and stability, minimizing your operational burden and costs, while continuing to work together to delight customers and drive growth for your business."

Amazon will not increase US referral and Fulfillment by Amazon fees, nor will it introduce any new fee types. Amazon also announced its plans to:

●       Reduce inbound placement service fees for large, bulky-size products by an average of $0.58 per unit for minimal shipment splits beginning January 15, 2025

●       Waive the inbound placement service fee on the first 100 inbounded units for qualifying new parent Amazon Standard Identification Numbers between December 1, 2024, and March 31, 2025

●       Enhance New Seller Incentives and FBA New Selection programs with more significant fee discounts

●       Invest in improvements to product experiences, like fee calculators and previews, to give sellers more insights into their business

For sellers who have been inundated with increases over the years, this reprieve offers an opportunity for growth and diversification.

Why isn't Amazon raising its fees?

Despite surpassing UPS last year to become the largest delivery business, Amazon is taking a different path in assessing yearly fee increases. The tech company explained its decision not to increase its fees, saying, "While inflation continues to impact our expenses and we made the biggest ever investment in pay and benefits for our fulfillment and transportation employees, we have also continued to make significant progress in lowering our costs to serve by driving innovation, improving efficiency, and removing defects."

The fee freeze may also be related to a jump in fees in 2024 that left sellers unhappy. Last December, Amazon introduced an inbound placement service fee and low-inventory-level fee, which led to an average fee increase of $0.15 per unit sold. Now, it admits that those "changes and new fee types introduced complexity, requiring some of you to modify your operations, invest in different packaging, and navigate additional business decisions."

Amazon's influence in the parcel industry has a direct effect on your relationship with UPS and FedEx. As Amazon shakes up the status quo, now is a great time to talk to the team at ShipRx about renegotiating your existing contracts with UPS or FedEx.