FBA Fees going up in 2016...YIKES


#1

The big killer for us is Large Standard Size under 1 pound going from $.63 to $.96. This applies to about 70% of our inventory with FBA.

Thats a 50% increase. We will likely move more towards seller fulfilled.

It is a real shame. We have a nice run with FBA.


#2

For my 3-pound book (774 page hardcover), total fulfillment costs goes from $2.33 to $2.71, a 16% increase. Not a killer for me due to my high margins (I wish volume was higher) but it’s part of the continued creeping up of costs at Amazon (they also slightly raised storage fees) and elsewhere.


#3

“…will be adjusting its fees in the U.S. to reflect the rising costs of fulfillment, transportation, storage, and customer service…”

Seems to me, all those are costs that are actually +falling…+


#4

just received email, this is my second month selling, do they raise fees every year ? ugh


#5

Bingo.

I wouldn’t like a 10-15% increase, but we could live with it.

50% is just unacceptable. We have a send a letter to them with our objections.


#6

They went many years without raising them. I believe from 2007-2011, fees were flat (even with sharply increasing fuel costs)

In 2012 they began a series of 10-15% increases each year.

This year’s 50% increase is unprecedented.


#7

2015 Fees went from .55 to .63 a 14.5% increase.

2014 went from .46 to .55 a 19.5% increase

This increase was over 52%

Edited by: HBA Seller on Dec 9, 2015 2:21 PM


#8

FBA is quickly becoming a joke. Merchant fulfilled is getting more appealing all the time. Heck, they are increasingly winning the buy box. What does Amazon give us for this Increase in fees? How about giving sellers features we actually want like on demand payments for all sellers - not just for sellers with older accounts.

Amazon is getting too big for its britches the way eBay did. Customers and sellers will move on to other sales channels if Amazon keeps squeezing us.

/rant


#9

Amazon has always had an idea on the margins sellers make, and they are pushing it to the limit. This, along with the outright assault on the Buy Box, means if you sell $5,000,000 in goods you may clear a $50,000 profit.

Good luck!


#10

>
It is actually about a 10% increase or $0.38 for every large non-media order. Increasing $3.63 to $4.01 for a 2 lb package and 4.41 to $4.79 for a 4 lb package.

It will get added to the price (to cover the referral fee that will be included), about $0.44 per order - might as well just increase your pricing by 50 cents to cover other inflation.

You still need to take a look at what it will cost you to ship a 3 lb package in a box with packing material.

You will not be able to do that with ANY other third party fulfillment service since even with discounted shipping rates and fairly low cost handling fees, it will still be at least $8 to ship almost anything.

If you have your own shipping account and have fully engaged staff, I still think you won’t be able to compete with that cost.

Dave


#11

Yikes.


#12

I tend to think that the buy box issues have a lot to do with the holiday season. Just a wild educated guess here, but shifting the buy box to third party sellers during the holiday season takes some of the stress off of Amazon’s infrastructure. I would not be surprised to see an algorithm update after the holidays that makes FBA preferential again.


#13

> {quote:title=HBA Seller wrote:}> The big killer for us is Large Standard Size under 1 pound going from $.63 to $.96. This applies to about 70% of our inventory with FBA.
>
> Thats a 50% increase. We will likely move more towards seller fulfilled.
>
> It is a real shame. We have a nice run with FBA.{quote}

I agree that I thought the fee increase was pretty large. However, as I’ve said on other posts previously, what is your plan to compete with 1 day shipping as a FBM seller? Same goes for all of the FBA sellers that have all of their inventory go to a single warehouse.


#14

Passing the fees to customers and still be competitive and make a profit is not easy anymore.
The real killer for booksellers is short and long terms storage fees and now this new fee hike.
So much for the holiday spirit; no buy box and more fees. Almost no sales.
I’m so depressed.


#15

Passing increases onto customers is a death sentence in terms of sales.

It takes weeks for competition to adjust prices before they realize they are losing money.


#16

The Buy Box changes started around October


closed #17