How the Latest Incentives Could Transform Your 2024 Sales

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Overview

In recent months, platforms like SHEIN, TEMU, and TikTok have seen breathtaking sales performance—either breaking records in the tens of billions or smashing historical records. Major markets are expanding at lightning speed, with sales and user numbers climbing continuously, setting the stage to even surpass Amazon. At this very moment, Amazon is acting like it’s under siege—rolling out layer upon layer of discounts, fee reductions, and other seller incentives. Many Amazon sellers already feel as if they’re reaping huge profits even though their 2024 inventory hasn’t sold yet. Let’s break down the upcoming benefits you’re about to enjoy!

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PART.01: Clothing Item Commissions

Starting January 15, 2024 (U.S. time), Amazon will lower sales commissions for the following apparel:

• For clothing priced under US$15, commissions will drop from 17% to 5%.
• For clothing priced between US$15 and US$20, commissions will decrease from 17% to 10%.
  Other product categories remain unchanged.
  These changes mean that new sellers listing clothing under US$20 can benefit from reduced fees along with the new seller introductory package (up to US$1 million in sales gets an extra 5% discount). In reality, sellers might end up paying extremely low—or even no—commissions!

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PART.02: 10% Rebate on New Product Inbound

Starting March 1, 2024 (U.S. time), Amazon will offer an average 10% sales commission rebate for new products registered under the Brand Registry. Now, even non-branded items that meet the criteria can enjoy this rebate!

• For qualifying bulky items, up to 30 products per parent ASIN can receive rebates over 90 days.
• For qualifying standard-size products, up to 100 items per parent ASIN can enjoy rebates for up to 120 days.

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PART.03: Lower Costs for Obtaining Reviews

For products registered on or after October 19, 2023, Amazon will process Vine applications at the latest (lowest) prices available—drastically reducing the cost for sellers to gain reviews.
If no reviews are received or the first Amazon Vine review is published more than 90 days after registration, Amazon will not charge any Vine registration fee.

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PART.04: Significant Drop in FBA Shipping Fees

Effective April 15, 2024 (U.S. time), Amazon will reduce FBA (Fulfillment by Amazon) shipping fees:

• Standard-size items will see an average reduction of US$0.20 per unit.
• Non-standard items will drop by an average of US$0.61 per unit.
• Items priced under US$10 continue to enjoy an extra discount of US$0.77 per unit.
  Unlike previous years when shipping fee updates always meant increases, this year, logistics fees are finally dropping—an absolute cause for celebration!

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PART.05: No Warehousing Fees for Low‐Sales New Buyers

Starting April 1, 2024 (U.S. time), new sellers with low-selling products will be charged zero warehousing fees, eliminating the fear of high storage costs and allowing them to grow fearlessly.
The low-stock fee applies only if the current inventory (relative to historical demand, measured in “historical supply days”) is below 28 days. Only if both the long-term (past 90 days) and short-term (past 30 days) historical supply days are less than 28 does Amazon charge the low-stock fee.

• New professional selling accounts receive a 365‑day waiver on warehousing fees for the first batch of inventory received.
• New parent ASINs are exempt from these fees for 180 days once the first batch is received, provided sellers join the Amazon New Product Inbound Incentive Program.
• Items using Amazon’s automatic replenishment also qualify for this fee waiver.
  For established sellers or new sellers not meeting these policies, standard fee structures apply.

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PART.06: Reduced Monthly Storage Fees for Standard Items

Starting April 1, 2024 (U.S. time), monthly storage fees for standard-size items during the off-peak period (January to September) will decrease:

• On average, fees will drop from US$0.87 per cubic foot to US$0.78 per cubic foot—a reduction of US$0.09 per cubic foot.
• Non-standard-size items’ fees remain unchanged.
  Ever since excess inventory builds up and slow-moving stock piles incur high monthly storage fees (plus long-term storage fees), many sellers have felt the pain. Although the reduction isn’t massive, every little bit counts—especially when every fee matters!

The platform isn’t just about capturing consumer loyalty; it’s about winning the hearts—and wallets—of sellers, ensuring that more excellent companies remain on the platform to offer better products to customers.

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Conclusion

As sellers gear up for 2024, these new policies signal a major shift. With reduced commissions, attractive rebates for new product listings, lower logistics and storage fees, and innovative review cost reductions, Amazon is laying out an irresistible bounty. If you haven’t sold your 2024 inventory yet, it might already feel like you’re raking in the profits. Get ready to harvest the benefits!