Amazon’s FBA New Selection program and Vine enrollment fees have undergone significant updates in 2024, enhancing benefits for sellers. Here’s a consolidated guide on these changes and strategic actions you can take.
FBA New Selection 2024 Enhancements
Rebate on Sales:
- Before: Specific rebates were not provided for non-branded selections.
- After: From March 1, 2024, an average 10% rebate on sales of eligible new-to-FBA parent products is offered, including up to 50 units for non-standard size and up to 100 units for standard-size items, for up to 120 days.
Unit and Timing Eligibility:
- Before: Benefits on up to 30 units for non-standard size products, for up to 90 days.
- After: Extended to 50 units per parent product, with storage and rebate benefits for up to 120 days, starting March 1, 2024.
Reduced IPI Score for Eligibility:
- Before: Required IPI score of 400 or higher.
- After: Lowered to 300 or higher, effective March 1, 2024, making more sellers eligible.
Exemption of Returns Processing Fees:
- Before: Returns processing fees applied broadly.
- After: Waived for up to 20 units of each eligible parent product, specifically for non-apparel and non-shoe products, starting June 1, 2024.
The Amazon Vine program has updated its fee structure to vary based on the number of units enrolled, making early reviews more accessible and cost-effective for sellers.
Example 1: Small
- Before Adjustment: A flat fee of $200 was charged regardless of the number of units enrolled.
- After Adjustment: Enrolling 1-2 units incurs no fee.
Action: A seller enrolling two units for early reviews now saves $200, enhancing product visibility at no cost.
Example 2: Moderate
- Before Adjustment: Regardless of enrolling 3-10 units, a $200 fee applied.
- After Adjustment: The fee for enrolling 3-10 units is now $75.
Action: A seller enrolling three units now pays $125 less, making it more economical to gather a modest amount of early feedback.
Example 3: Larger
- Before Adjustment: Enrolling over 10 units still incurred a flat rate of $200.
- After Adjustment: Enrolling 11-30 units maintains the $200 fee.
Action: A seller enrolling 11 units pays the same fee but benefits from the flexibility for larger quantities without additional costs.
How to Act on It
- Capitalize on Rebates: Prioritize enrolling new-to-FBA products to benefit from the sales rebate. Focus on both standard and non-standard size items to maximize rebates across a broader range of products.
- Optimize Inventory for Extended Benefits: Adjust inventory levels to leverage the increased unit and timing eligibility for non-standard size products. Plan to stock up to 50 units for 120 days to fully utilize free storage and liquidation benefits.
- Strategize Unit Enrollment Based on Goals: Determine whether your primary goal is to gain a few high-quality reviews at no cost or broader feedback for a modest fee.