In a major change for FBM sellers, Amazon has officially announced that price-banded shipping rates will be deprecated on June 30, 2025. Sellers who have relied on price bands to calculate shipping based on order value will need to adjust their shipping settings to per-item or weight-based rates.
This change presents a challenge for many sellers, especially those with variable-sized products or custom items that don’t fit into Amazon’s more rigid shipping models. In this post, we’ll break down what’s changing, what sellers need to do to stay compliant, and how you can adapt to ensure your business continues to thrive.
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What’s Changing with Price-Banded Shipping?
Amazon’s price-banded shipping allowed FBM sellers to set shipping fees based on the total price of the order. However, this model is being removed in favor of more rigid shipping structures that use per-item rates or weight-based shipping.
This means that sellers will no longer have the flexibility to charge $5 for orders under $25, and $20 for orders over $50. Instead, they’ll need to switch to shipping methods that are either per-item or based on the weight of the products being shipped.
How This Will Impact FBM Sellers
For many FBM sellers, this change could create significant challenges. Here’s why:
- Increased Complexity for Custom or Oversized Products
Sellers who offer custom or oversized products will find it difficult to fit into Amazon’s per-item or weight-based shipping models. Small products may cost $10 to ship, while larger products might cost $50 to ship, leading to potential profit loss or overcharging customers.
2. No More Flexibility for Shipping Costs
With price-banded shipping, sellers had a simple way to account for shipping costs across multiple products and order values. Removing this option means sellers will need to either increase their prices across the board or absorb the extra cost for larger and heavier items.
How to Adapt to the New Shipping Rules
- Adjust Your Shipping Templates
The first step is to update your shipping templates in Amazon Seller Central to reflect the new per-item or weight-based rates. Make sure your pricing model accounts for the different sizes and weights of your products. - Split SKUs for Different Sizes
For sellers with multiple size options in one listing, it’s a good idea to split those listings into separate SKUs for each size. This will help ensure accurate shipping costs and avoid any overcharging. - Explore Third-Party Shipping Solutions
If the new per-item or weight-based rates don’t work for your products, consider using third-party logistics (3PL) to manage your shipping and fulfillment outside of Amazon’s system. This could give you more control over shipping costs and the ability to maintain competitive prices.
Stay Agile and Optimize Your FBM Strategy
Amazon’s removal of price-banded shipping presents a challenge for many FBM sellers, but with the right strategy, you can navigate these changes smoothly. By updating your shipping templates, optimizing inventory, and adjusting pricing, you can continue to maintain profitability while staying compliant with Amazon’s new rules.
Need help adapting your FBM strategy to the new shipping requirements?
Contact Big Internet Ecommerce today for expert advice on shipping optimization and FBM strategy.
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