US FBA and referral fee changes — coming in February 2020


#1

This year we invested more than $15 billion in infrastructure, programs, people, and 150 new tools and services to help our sellers grow their brands and businesses. We also invested billions of dollars to expand FREE One-Day Delivery to more than 10 million Prime-eligible items. We are thrilled with the response of our mutual customers. Thank you for your continued innovation in providing unique selection and low prices for customers.

Driven by FREE One-Day Delivery, this was the largest one-year investment we have ever made in FBA. Nevertheless, in 2020, we will make only moderate increases (about 3%) in fulfillment fees, below industry average, because we remain committed to your continued success. We will also decrease select referral fees and introduce an exciting new selection program.

Please review the fee change pages below. The changes will take effect February 18, 2020, except where noted.

2020 US referral fee changes
2020 US fulfillment fee changes
2020 FBA fee changes for monthly storage, Label Service and removal orders
2020 Small and Light fee changes
FBA New Selection program

Amazon


pinned globally #2

#3

The shakedown has arrived!


#4

Removal fees for oversize over 10lbs going up almost 400%


#5

I just read this in my email.

My first thought about it was…

  1. Doesn’t surprise me - eBay did the same thing years back. So much so, they were considered “feebay”, not “eBay”. And guess what that resulted in? Many US sellers left!

My second thought about it was…

  1. Great another victory for the Chinese sellers! Now US sellers have to raise prices to consumers, to offset the fee increase, while the Chinese just keep their prices low and absorb the increase in fees, because they easliy can.

#6

@SEAmod I believe this is a duplicate post of this nearly identical post: US FBA and referral fee changes coming February 18, 2020


#7

Where did I miss the text stating that Chinese sellers don’t pay the fee increases?


#8

{auto-responder} Off for 5 days, you’ll have to wait for an official reply. :peace_symbol:


#9

you didn’t miss, what he/she meant is Chinese sellers are able to absorb the fee increase better because they manufacture themselves, they have a way bigger profit margins than US-based sellers who have to rely on importing from China/Chinese factories, and Chinese sellers now on on board with Amazon and compete against them directly, so they will lose in the pricing war…


#10

I’m still confused…

That argument is like saying Tidy Cat has a higher profit margin selling kitty litter, than I do, cuz they mfg the product, and I don’t. Well, duh…isn’t that common sense? I’m pretty sure Weber can sell their bar-b-q grills cheaper than any reseller of their grills.

It has nothing to do with China.
It’s that way when competing against ANY mfg, domestic or abroad.

I swear…so many people are just looking to blame anyone other than themselves, for their failing businesses.


#11

Yep, you are! And convincing you of the serious and major current issue affecting hundreds of US-small business sellers on the US-marketplace, with regards to US-sellers vs China-sellers, probably no one can help you understand at this point. I bet, if you were directly affected on this issue, your thoughts on it may yield different responses.

Failing business has nothing to do with it!

Did amazon make a headline announcement that they (themselves) were heavily recruiting thousands of Chinese sellers to sell here? NO!
Were they supposed to? NO!
Should they have!? YES!
Did US-sellers get blindsided by this action! YES!

US-sellers were just supposed to guess that this would happen and then change their business accordingly!? Nah, market trends on this massive scale are not something any business can foresee. Unless they had insider info on amazons business decisions. (which most don’t)

Most sellers have a great niche that is in demand. However, most sellers facing direct competition with hundreds of ghost brands and Chinese companies, are down 40-70% in revenue since the Chinese were recruited to sell here in massive numbers. This is not an indication of a failing business, this is the US-sellers’ ability to compete with extremely low-prices and multiple ‘ghost brands’ flooding their categories and pushing them waaaaayyyyy back on page 2,3,4,5,6.


And this statement :point_down: - completely irrelevant.


I yield back.


#12

And they are losing in the pricing war! No doubt about it. Like bad! For a US-seller to manufacture product here on US soil, the price to consumer would be very high. So sellers that do import from China (or any other country for that matter) and have built a brand in their niche over the last 10 years, using this exact model, are getting smashed by the Chinese.

Thus the fee increase for FBA, benefits amazon, (of course) and also does in fact benefit the Chinese sellers selling on the US-marketplace directly from Chins via FBA.


#13

Then why did my post get 4 likes, and yours zero?


#14

This is not a popularity contest!

Probably because most active forum posters are on holiday break, and not reading forums? :ok_man::man_facepalming:


#15

Starting to shake in 3, 2, 1…


#16

You are forgot to mention that amazon jumps on the wagon when an item is a hot seller, and then tanks the price, and yanks away the buy box from everyone else.


#17

break on holidays? sound like start a diet on Thanksgiving day… I wish


#18

I quite agree with you


#19

Yep, why not take some more from all of us, why not take away everything we have? Oh wait, you actually do that!

And what do we get in return??? Lost merchandise, Damaged Returned Goods by Amazon’s spoiled customers. Wrongful account suspensions, horrible Seller Support Dis-service.

Thank you very much!!!


#20

Tell me this…why do you think you have all these issues, but I don’t?