An Overview of Amazon's 2024 Seller Fee Changes

Author name

Understanding Amazon's fee changes in 2024 is like finding your way through a maze. There's a lot to figure out, but with the right knowledge, you can navigate it successfully. These changes are all about making things run smoother, being more eco-friendly, and helping sellers like you do better. Let's break down these adjustments and see how you can make the most of them in your online business journey.


 Main Updates

  • Product Size Tiers: Better Categorization
  • Referral Amazon Fees: Adjustments for Apparel
  • Inbound Placement Service and Defect Fees: Simplifying Inventory and Quality
  • FBA Fulfillment Fees: Managing Costs Better
  • Ships in Product Packaging Program: Eco-Friendly Discounts
  • Prep Service Fees: Keeping Products Safe
  • Removal/Disposal Fees: Managing Old Inventory
  • Returns Processing Fee: Ensuring Quality
  • Conclusion: Adapting to Change


Product Size Tiers: Better Categorization

 

In 2024, Amazon has overhauled its size categorization system for FBA products, moving beyond the broad "Oversized" label to more specific tiers such as Large Bulky and Extra-Large. This nuanced classification allows for more accurate fee assessments based on a product’s dimensions and weight.

For example, a product previously categorized under a generic "Oversized" category may now be classified under "Large Bulky," potentially resulting in different fee structures. This ensures fairer fee allocation and benefits sellers with diverse product sizes and weights. By categorizing products more precisely, Amazon enhances the transparency and predictability of fees, allowing sellers to better manage their costs and pricing strategies.

 

Referral Amazon Fees: Adjustments for Apparel

 

Amazon is making targeted adjustments to referral fees for apparel items, particularly for those priced under $20. Sellers will see reduced referral fees for clothing items priced below $15 and those in the $15-$20 range.

For instance, a t-shirt priced at $18, which previously incurred a higher referral fee, will now have a lower fee, enabling sellers to price their products more competitively. This fee adjustment aims to support sellers in the highly competitive apparel market, encouraging them to offer more competitively priced items. Lower referral fees help sellers reduce costs, which can be passed on to consumers through better pricing, thus enhancing the overall shopping experience.

 

Inbound Placement Service and Defect Fees: Simplifying Inventory and Quality

 

To streamline inventory management, Amazon now offers Premium and Discounted service levels for inbound inventory placement. Sellers can choose a service level that best fits their operational needs and budget constraints. Additionally, a new fee structure has been introduced to encourage timely and accurate shipments, reflecting Amazon's commitment to high service standards.

For example, sellers opting for the Premium service might benefit from quicker processing times, while those choosing the Discounted service can keep costs lower. This change underscores the importance of accurate inventory handling and efficient shipping practices, benefiting sellers by reducing potential delays and improving customer satisfaction.

 

FBA Fulfillment Fees: Managing Costs Better

 

Amazon's adjustment of FBA fulfillment fees based on new size categories will impact sellers of various products, particularly in the apparel and dangerous goods sectors. Standard-sized items will see a reduction in fulfillment fees, while fees for larger items will be recalibrated according to their new categories. 

This realignment aims to better match fulfillment fees with the actual costs associated with handling and storing items of different sizes. Sellers of large or bulky products should review these changes to understand their cost implications. This adjustment helps ensure fair pricing across diverse product types and reflects Amazon’s efforts to optimize its fulfillment network, offering competitive rates for sellers.

 

Ships in Product Packaging Program: Eco-Friendly Discounts

 

Amazon is encouraging sellers to adopt eco-friendly packaging through its Ships in Product Packaging program, previously known as Ship in Own Container (SIOC). Sellers using sustainable packaging solutions will benefit from discounts on fulfillment costs. For example, a seller who switches to recyclable or biodegradable packaging materials may receive a discount, reducing overall fulfillment expenses. 

This initiative aligns with Amazon’s broader sustainability goals, promoting environmentally responsible practices among its sellers. By incentivizing eco-friendly packaging, Amazon aims to reduce its environmental impact while providing cost savings to sellers, supporting a more sustainable ecommerce ecosystem.

 

Prep Service Fees: Keeping Products Safe

 

Amazon has revised its prep service fees to reflect changes in packaging material costs. The price of bubble wrap has increased to ensure better protection for products during shipping, while labeling fees remain unchanged to maintain clear identification of items. 

For instance, the cost for bubble-wrapping a fragile item has risen, but this ensures that items are better protected from damage. Maintaining consistent labeling fees helps minimize shipping errors, enhancing customer satisfaction. Sellers should incorporate these changes into their budgeting and pricing strategies to ensure their products are adequately protected and accurately labeled, reducing the risk of damage and returns.


Removal/Disposal Fees: Managing Old Inventory

 

To encourage better inventory management, Amazon is updating its fees for removing or disposing of inventory. These adjustments are designed to incentivize sellers to prioritize inventory turnover and avoid the accumulation of excess or obsolete stock. 

For example, fees for removing outdated products from Amazon’s warehouses have been increased, prompting sellers to manage inventory more efficiently. By aligning removal and disposal fees with the actual costs of handling inventory, Amazon encourages proactive inventory management. 


Sellers should plan for timely removal or disposal of excess stock to minimize associated fees, improving overall operational efficiency and reducing costs.

 

Returns Processing Fee: Ensuring Quality

 

A new fee is added for handling returns in most categories, except for clothes and shoes. This encourages sellers to focus on quality to reduce returns and make customers happier. This fee adjustment incentivizes sellers to prioritize product quality and customer satisfaction, reducing the incidence of returns and improving the overall shopping experience.

 

By introducing a returns processing fee, Amazon aims to deter sellers from listing low-quality or defective products, thereby reducing the frequency of returns and associated costs. Sellers should focus on providing accurate product descriptions, high-quality images, and excellent customer service to minimize returns and mitigate the impact of this fee on their bottom line.

 

Conclusion: Adapting to Change

 

As Amazon sellers, it is crucial to understand these fee changes and adapt strategies accordingly. By managing costs better, optimizing inventory, and offering high-quality products and services, sellers can navigate the evolving landscape of ecommerce with confidence and success. 


These adjustments reflect Amazon's ongoing efforts to support sellers, enhance customer satisfaction, and promote sustainability across its platform. Staying informed and proactive in response to these changes will help sellers maintain competitiveness and achieve long-term success in the dynamic ecommerce market.

A hand is holding a magnifying glass with a graph on it.

The Psychology of Product Images: How to Create Visuals That Drive Clicks & Conversions

By William Fikhman • July 30, 2025
In the split-second decision-making world of Amazon, your product images are your first impression—and often your last chance to win the sale . Before a shopper reads a bullet point or sees your pricing, they judge your product based on the thumbnail. One glance decides if they click… or keep scrolling. And once they land on your listing? Each image either builds trust or fuels hesitation. This isn’t just about photography—it’s about psychology . Strategic, emotion-driven visuals can skyrocket your conversions, increase perceived value, and tell a complete brand story without saying a word. In this blog, we’ll dive into the psychology behind product images and how to craft visuals that don't just look good—but sell . Why Images Matter More Than Copy Amazon shoppers are visual. They scan. They skim. They compare. Here’s why product images are so powerful: 90% of information transmitted to the brain is visual Shoppers process images 60,000x faster than text On mobile, images often load before text , and thumbnails dominate screen space Strong visuals reduce doubts, increase trust, and enhance perceived quality Even if your bullet points are genius, they won’t matter if your images don’t stop the scroll. 1. The Thumbnail Trap: Win the Click with Visual Clarity Your main image (the thumbnail ) is your product's billboard in the search results. It needs to grab attention and clearly communicate what the product is. Psychological triggers to leverage: Simplicity: A clean, high-resolution product image on a pure white background helps the brain quickly process shape and form. Visual clutter = confusion. Contrast: Bright or bold products stand out better among muted competitors. Shape recognition: The human brain is wired to recognize familiar outlines—make sure your product is clearly distinguishable even in small thumbnails. Tips: Use 1000x1000px minimum for zoom capability Avoid props or shadows in the main image Show the product in its most iconic or recognizable form 2. Image #2 = Hook Their Imagination Once they click, the second image should answer the question: "What is this and why do I need it?" This is your chance to connect emotionally and help the shopper visualize the product in their life. Use: Lifestyle photography that shows the product being used in context Emotionally charged imagery : joy, relief, satisfaction, convenience Demographics that reflect your target audience Psychological principle: Mirror neurons. When shoppers see someone using and enjoying your product, their brain simulates that experience, making them more likely to convert. 3. Infographics That Reduce Risk & Build Trust After desire, the brain looks for reassurance . It asks: “Is this really going to solve my problem?” “Will it fit/work/do what I expect?” Infographic-style images answer these questions visually . Examples: Dimensions and sizing guides Compatibility info (e.g., “Works with iPhone 13–15”) Key features with icons (e.g., “Waterproof,” “BPA-free,” “30-day battery life”) Why it works: Cognitive fluency : Visual data is easier to process than text Trust amplification : Visual proof is perceived as more truthful than a sales claim 4. Comparison Charts = Competitive Psychology Your buyer is looking at other options. Don’t hide from it— control the comparison . Create an image that: Shows your product next to generic versions or key competitors Highlights clear advantages (material, warranty, features, bundle inclusions) Psychological principle: Anchoring. People make decisions based on relative comparisons. By showing your value directly, you "anchor" them to the idea that yours is the superior choice. 5. User Intent Matching = Click to Conversion Ask yourself: What would make a shopper feel “This is exactly what I was looking for”? Each image should match buyer intent and eliminate objections: “Will this fit in my space?” → Add scale reference or room context “Is it complicated to use?” → Add a simple step-by-step use guide “Will it last?” → Add a zoomed-in texture shot or highlight materials Brain hack: The brain avoids uncertainty. Remove friction and guesswork with visuals that reassure and inform. 6. Tell a Story from Image 1 to Image 7 Too many listings treat product images as isolated pieces. Instead, think of your image set as a visual story arc . Ideal flow: Main image – Clear, clean, scroll-stopping Lifestyle shot – Show the product in use Infographic – Highlight top features Comparison chart – Establish superiority Benefit-led image – Focus on how it makes life better How it works – Instructions or setup Guarantee, certifications, or bundling – Final trust boost This mimics the emotional journey a buyer takes: curiosity → desire → logic → trust → purchase. 7. Color Psychology in Product Imagery Color isn't just aesthetics—it influences mood and behavior . Use color intentionally: Red = urgency, energy (great for fitness or limited-time offers) Blue = trust, reliability (ideal for tech or health products) Green = calm, nature, eco-friendliness Black/Gold = luxury, high-end appeal Even if your product is neutral, use colored background accents, icons, or overlays to guide emotion. 8. Optimize for Mobile Viewing Over 70% of Amazon shoppers browse on mobile. That means: Small screens Faster scrolls Quick decision windows Mobile-friendly image tips: Keep text overlays large and minimal (no small paragraphs) Use vertical or square images to fill mobile screens Ensure key info is visible in the top ⅓ of the image 9. Real People = Real Conversions Stock photos are obvious. So are AI-generated faces. Want trust? Use real, diverse people that mirror your buyer avatar . Why it works: Authenticity reduces skepticism Faces increase engagement (especially eye contact) Representation makes your product more relatable and inclusive Final Thoughts: Images Sell Before Words Do You can’t afford to treat product images like an afterthought. Great Amazon listings don’t just “look nice”—they convert . They tell stories, answer questions, tap into psychology, and guide the shopper to “Add to Cart” with confidence. So stop thinking like a photographer. Start thinking like a buyer. Need help redesigning your Amazon image stack for better conversion? We specialize in data-backed, psychology-driven visuals that turn browsers into buyers. Let’s build image assets that actually sell. Schedule a call now with CMO !
A banner for amazon seo with an illustration of a computer screen.

SEO for Sellers: How to Reverse Engineer Bestselling Listings

By William Fikhman • July 30, 2025
In the world of Amazon, ranking = revenue . And if your product isn’t ranking on page one for high-converting keywords, you’re leaving serious money on the table. The good news? You don’t need to guess what works. You just need to reverse engineer what already is working. Top-performing listings on Amazon are optimized for visibility, conversion, and trust. They’ve already cracked the code—and smart sellers use them as a blueprint to build better listings, faster . In this post, we’ll break down how to reverse engineer Amazon’s bestselling listings to improve your own SEO and climb the ranks. Why Reverse Engineering Works Amazon’s algorithm—A9—rewards performance. It pushes products that convert, maintain strong sales velocity, and check all the right boxes for SEO. When you analyze top listings in your category, you get a shortcut to: The keywords they’re ranking for The copy structure that converts The images and A+ layouts that close the sale What buyers love (and complain about) You’re not copying—you’re learning. And then optimizing smarter. Step 1: Identify Your True Competitors Start by searching your top 3-5 most relevant keywords on Amazon. These are the terms your ideal customer would type when looking for a product like yours. Ask: Who keeps showing up on page one? Are their products similar in price, size, category, or function? Are they organically ranked, or relying on ads? Pick 3-5 top competitors whose listings are consistently visible—especially organic results , not just sponsored placements. Step 2: Analyze Their Keyword Strategy Now that you’ve got your competitor ASINs, it’s time to uncover which keywords are driving their traffic. Tools you can use: Helium 10 – Cerebro Jungle Scout – Reverse ASIN Lookup ZonGuru or DataDive Amazon Brand Analytics (if you’re brand registered) What to extract: Top-ranking keywords (organic) High search volume + high relevancy terms Long-tail keywords Backend (hidden) keywords they might be targeting Pro Tip: Export the keywords from all 3-5 competitor ASINs and look for overlapping terms. These shared keywords should form the core of your SEO plan. Step 3: Deconstruct Their Listing Copy Now dive into the listing itself. Focus on how they’re using keywords and what tone or structure they’re using to convert shoppers. Title Where are the most important keywords placed? (Front-loaded?) Are they keyword-stuffed or clean and benefit-driven? Are they using compatibility terms, size, or use cases? Example: Instead of “LED Night Light for Kids,” a top listing might say “Soft-Glow LED Night Light for Kids, Plug-in Wall Lamp for Nursery, Bedroom & Bathroom.” This variation blends keywords with clarity. Bullet Points Are they leading with features or benefits ? How long are they? Are they repetitive or concise? Look for keyword usage in natural language , not robotic stuffing. Description / A+ Content If your competitor has A+ Content, study: Headings (SEO hint: these are indexed) Image-text layout Storytelling techniques Product comparisons Even though A+ Content doesn’t directly index in traditional SEO, Amazon crawls some elements , and it definitely boosts conversion , which impacts ranking indirectly. Step 4: Evaluate Their Visual SEO Images speak louder than words on Amazon. Top listings don’t just rank—they convert with compelling visuals. Look for: Infographics with keywords (e.g., “BPA-Free | Travel-Safe | Fits in Cup Holders”) Size comparison charts Lifestyle photos that match search intent Text overlays that highlight benefits Don’t underestimate image text . While Amazon doesn’t index image alt text directly, customer behavior influenced by visuals affects performance metrics like time on page and conversion rate. Step 5: Harvest Review Insights for Keyword & Messaging Clues Amazon customers write your copy for you—all you have to do is listen. Analyze competitor reviews: What words do customers repeatedly use? (e.g., “lightweight,” “easy to clean,” “perfect for travel”) What are positive themes ? What problems or objections do they raise? Use these insights to: Improve your bullet points Refine your images Add new keyword variations (especially emotional or pain-point terms) Step 6: Spy on Their Backend Keywords You can’t see backend search terms directly, but you can make educated guesses based on what they’re ranking for but not mentioning visibly in the listing. Use reverse ASIN tools to find: Keywords they rank for that don’t appear in the title, bullets, or description → These are likely in their backend search terms . Use this to expand your own hidden keywords without cluttering your copy. Step 7: Benchmark Performance Metrics Use tools like: Helium 10 – Market Tracker DataDive – Listing Scores Sellerboard – Competitor Monitoring Track: BSR (Best Seller Rank) Number of reviews Average rating Price changes New variations launched This helps you understand why they’re ranking well —and what you can emulate or beat. Step 8: Build a Listing That’s Better, Not Just Similar Now it’s time to apply what you’ve learned—but do it in a way that’s strategic, original, and compliant . Focus on: Keyword density without stuffing Front-loaded title with clarity High-converting bullet points that address pain points and benefits Backend terms that add long-tail support Mobile optimization (bullet length, image order, thumbnail clarity) Better visuals than your competitors Clear differentiation (USP) Don’t just match your competitors. Outperform them . Step 9: Track, Test, and Iterate Amazon SEO is not a one-time task—it’s an ongoing process . After optimizing: Track keyword rankings with tools like Keyword Tracker Monitor CTR and CVR using Amazon Brand Analytics (if available) Split test titles or images with tools like PickFu or Manage Your Experiments Keep what works. Replace what doesn’t. Final Thoughts: Data-Driven Creativity Wins Reverse engineering isn’t about copying—it’s about learning what works, why it works, and how to do it even better . By dissecting bestselling listings: You shorten the SEO learning curve You gain insight into buyer behavior You build listings designed for ranking + converting In the ultra-competitive Amazon marketplace, guesswork is a liability. Use real data from real winners to build a smarter strategy that puts your product on page one—and keeps it there. Need help with listing teardown, SEO keyword mapping, or a full optimization? Our team can reverse engineer your top competitors and build a tailored listing strategy that ranks and converts. Book a call now with CMO !