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Amazon Slashes Small-Package Shipping Prices

Posted on 6.16.2016

Amazon is reducing the fees it charges merchants to sell USB cables, smartphone screen protectors and other small, flat items that can be sent in envelopes.

Under the new rates, which take effect July 1, merchants will pay $1.61 to ship three, flat, 1-ounce packages. That is a 67 percent reduction from the current cost according to the official announcement sent through email to Amazon sellers.

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The new pricing applies to merchants using the Fulfillment By Amazon Small and Light program, a program introduced last year to offer shoppers free shipping on small items such as makeup, mobile phone accessories and stickers. Most of the inventory comes from third-party merchants who give Amazon a cut of each sale for handling storage, packaging and delivery. Most items cost $10 or less, making low delivery costs essential for profitability.

Amazon shoppers in the U.S. order tens of millions of units annually that fit the small and light dimensions, according to company documents reviewed by Bloomberg News.

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