US FBA and referral fee changes — coming in February 2020


#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?


#21

What’s your point?


#22

My point is, if you’re having all these issues, (Lost merchandise, Damaged Returned Goods by Amazon’s spoiled customers. Wrongful account suspensions, horrible Seller Support Dis-service) as well as most other sellers do not…perhaps you should be blaming yourself, and not Amazon.


#23

It’s not just us, it’s more sellers than you can wrap your head around. Have you seen what’s going on in the forums?

Why do you think amazon doesn’t release the numbers from all those silly polls they pose to sellers, is it because the numbers are so good?

Have you called or opened a case with SS and the issue was resolved in one call, or message, without having to go back and forth several times?

Has amazon marked your product as Hazmat out of the blue, and even after submitting all of the requested paperwork, had to remove the item from FBA warehouses?

Have you ever shipped 50K of merchandise into FBA, that was stuck in FBA as in transit for 4 months?

Has amazon ever lost merchandise, and refused to issue reimbursement, even after being provided with invoices, tracking information, including dimensions and weight?

Has amazon ever received damaged goods that was sold by vendor to another dealer, and was returned by an amazon buyer to you instead?

Have you ever notified amazon of repeat return buyers, and after sending the same old canned message that they have forwarded to the team investigating buyer fraud, the same buyer comes back and does the same thing several times?

Now, why should we blame ourselves for this?

Most abusers in domestic abuse cases blame the victims, unfortunately most victims end up blaming themselves. We cannot be blamed for any of the above mentioned.

Go and ask any mid-size seller if they love amazon and the same goes for most vendors.

BTW: The reason more Sellers are not complaining is because a) they believe it won’t change anything. b) They are scared of retribution.


#24

This just posted by another seller. Surely you will blame them!


#25

Sure because at this scale it’s hard for me to wrap my head around the kind of numbers Amazon deals with.

Yes, most of the time, though I never call, just message. Often it does take Amazon time to research the issue but the regular status updates dont’ require responses from me.

No

No

Yes, though most recently it was when I told them I shipped 3 units, they recieved 2 units, but for some reason for the weight of the package I entered only 1 units worth. Unfortunately I can’t actually confirm how many units I sent them to refute their claim that I only sent 2. This is why the majority of my stuff is processed by a prep center who uses barcode scanners to ensure everything is 100% accurate.

Yes

Not sure what a midsize seller is but I did 4.2 million last year and I love Amazon and will be forever grateful for their huge opportunity they provided me and for the forever lasting impact it has had on my life.


#26

If money is all you’re after, and you feel as though 4.2 million in sales with 20-40K profits is “mid-size”, you might have issues down the road.


#27

As I said I wasn’t sure what a midsize seller is but try again on the profits… 2018 profit after all expenses excluding my own salary and my own income/payroll taxes was 12% on 2.2 million and this year I’m hoping it’s inched up a bit, maybe a 13 or 14%.