Upcoming important changes to Referral fees on Amazon.com


#1

Just got this email…

Dear seller,

Starting on February 22, 2018 (midnight PST), we will reduce the Referral fee for eligible Jewelry items for one year. We will also increase the Referral fee for Clothing & Accessories and eligible products in Shoes, Handbags & Sunglasses starting on April 15, 2018 (midnight PST).

Current Referral fees:
• Jewelry – 20% of the total sales price, with a minimum fee of $2.00 per item.
• Shoes, Handbags & Sunglasses – 15% of the total sales price, with a minimum fee of $1.00 per item.
• Clothing & Accessories - 15% of the total sales price, with a minimum fee of $1.00 per item.

New Referral fees:
• Jewelry – 20% on the portion of the total sales price up to $250, and 5% for any portion of the total price greater than $250, with a minimum fee of $2.00 per item. This fee reduction will take effect on February 22, 2018 (midnight PST), and last until February 21, 2019 (11:59 PM PST). Starting on February 22, 2019 (midnight PST), the Referral fee will go back to 20% of the total sales price, with a minimum fee of $2.00 per item.
• Shoes, Handbags & Sunglasses – 15% on items with a total sales price up to $75, and 18% on items with a total sales price greater than $75, with a minimum fee of $1.00 per item. This change will take effect on April 15, 2018 (midnight PST).
• Clothing & Accessories – 17% of the total sales price, with a minimum fee of $1.00 per item. This change will take effect at on April 15, 2018 (midnight PST).

Examples:
• On a Jewelry item with a total sales price of $200, the referral fee will be $40.00, calculated as 20% of the total sales price.
• On a Jewelry item with a total sales price of $750, the referral fee will be $75, calculated as 20% of the total sales price up to $250 ($50), and 5% on the portion above $250 ($25).
• On Shoes, Handbags & Sunglasses with a total sales price of $75, the referral fee will be $11.25, calculated as 15% of the total sales price.
• On Shoes, Handbags & Sunglasses with a total sales price of $100, the referral fee will be $18.00, calculated as 18% of the total sales price.
• On a Clothing & Accessories item with a total sales price of $20, the referral fee will be $3.40, calculated as 17% of the total sales price.

For all products, Amazon deducts the greater of the applicable Referral fee percentage or applicable per-item minimum Referral fee. Referral fees are calculated on the total sales price excluding any taxes calculated through Amazon tax calculation services. The total sales price is the total amount paid by the buyer, including the item price, and any delivery or gift wrapping charges.

Regards,
Amazon Services


#2

This is also a headline on your seller central page.


#3

It’s a bit comical how amazon wants to be the lowest price yet has by far the highest fees and highest amount of required padding because of all the deductions they take from us.

In many categories amazon cannot compete price-wise, but amazon buyers aren’t necessarily shopping price. They want no responsibility for anything and are willing to pay a premium for it.


#4

Yeah…saw that.

So they want to corner that market, maybe? 17 and 18%? They’re begging those sellers to go to other platforms. I know, I know, they won’t.

We don’t sell much over $75 in clothing, so won’t be affected a lot. But couple that with the FBA fee increase…


#5

It just never ends, They are squeezing 3P Sellers dry, How can we deliver quality product and service to our customers when Amazon wants so much of the pie, Leaves us pennies to operate on… Disgusting.


#6

Because you will. And they know it. Or you’ll not make it online.

Until it goes too far…a lot of companies have made it to the top, but went too far. But NOBODY is even remotely close to Amazon.

Maybe they’re trying to squeeze sellers out, now that we supplied the funds to build the infrastructure?


#7

Greed at it’s finest is what it is.


#8

Those lower corporate tax rates are really paying off.

(for someone.)


#9

Amazon just Invested Big in clothing Will they increase fees on it’s own listing Lol


#10

I think selling on Amazon is no longer profitable. Due to recent USPS price increase and later Amazon fee increase and more and more 3rd party seller competing with each other.

It’s really time for me to look for another career.


#11

All the effected inventory that I have with the change, I increased my offer price. For earnings to be roughly the same from 15% to 18%, add 3.66% to your offer.


closed #12

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