What is the reason Amazon charges 1.80 extra on Media?


#1

Just recently started selling dvds, on a 34 dollar dvd, that extra fee makes the total fees about 20 percent. Ive searched and cant find the reason behind that extra fee, what exactly is the reasoning about that fee.
Just curious.


#2

Because they can? Because it has been there since forever.
In the old days there had been penny listers and no percentage on shipping so Amazon made zilch on the listing/sale.


#3

Yes I understand that, but now its all changed about the regular fees, and with shipping cost going up on first class it seems a little overboard for usually cheaper items? So you think the reason behind it was when they didnt charge fees on shipping they charged the 1.80 to prevent penny sellers?


#4

It did not prevent them but it did give Amazon some money per order. Similar to the per item for Individual Seller Accounts.


#5

Either way, the fee is there. It has been for like every and is unlikely to go away. You need to price your product accordingly.


#6

Yes I fully understand that, it pretty much makes media 20 percent fees. If they did this back in the day to get some money, with now rising shipping cost, and them charging fees for shipping now as well, it would seem that would be an outdated fee schedule. I do know amazon hardly ever changes anything, just seems like an outdated fee to me. And was curious on exactly what the reasoning behind it was.


#7

Why do you charge $34 for a DVD that likely costs pennies to manufacture? (I know your cost is much more, probably something like $15)
And why is your supplier charging you that $15 for that item that again likely costs pennies to manufacture?


#8

I get where you going, but I dont think that has anything to do with the question. Again the question is, what is the reason behind the 1.80? Not because Amazon can, if the reason is because they needed to charge something on the penny sellers I get it, but isnt that pretty much outdated?


#9

The reason is the same for the questions I submitted as it is for the $1.80 charge. BOTTOM LINE PROFIT


#10

So why is that not charged on every category? I mean if Amazon can just do it, and thats the answer, then why not do it on every single item and category? So I dont believe that is the reason.


#11

How is anyone here supposed to know? We are other sellers. We are not involved in determining the fees that Amazon charges.

Maybe you can email Jeff and ask him.


#12

My guess is that Amazon does not make any extra money selling you postage on media as you get the same price at the post office counter as you get from Amazon. (a possible reason)


#13

IF it bothers you so much about someone asking a legit question, maybe you shouldnt respond.

Im sure there is some long term dvd media category sellers here, that might know about the extra fee. I thought at one point, the media category didnt have the fee, but I can not remember back that long, and I havent really sold in the media category much in the past 12 years, so I was curious as to why that fee is there, and pretty much makes 20 percent in fees, for generally a cheaper item category.


#14

A possible reason yes, but wasnt this fee around much much longer before Amazon was doing shipping thing. I can only think that this was added because the items are normally cheaper items overall, and they needed to make some money somewhere on the category, but today it seems a little outdated to me due to high shipping cost, and charging fees on shipping cost now.


#15

This conversation is now pointless since you will never be satisfied with any response that you will get here.


#16

I suppose its pointless to you, but if you look at the responses, most of them are saying, because they can. That really cant be the real reason. Looks like you and a few others have no desire in having a conversation about the fee and a possible reason behind it. If you didnt have any kind of knowledge about the fee, then why would you even respond? That seems pointless to me.


#17

Why does the supermarket charge $5.99 for a 12-pack of Pepsi?

Why do you charge $34 for a DVD?


#18

@StoptheMadness, based on a brief online search, it appears that in 2016, Amazon announced 3 changes that affected booksellers and other media sellers, that were put into place on Mar 1 2017:

  1. Booksellers could compete for the Buy Box in “new” condition.
  2. Referral fees became a category-dependent percentage of the total of sales charge + shipping charge (BMVD was and is 15%).
  3. Closing fees changed from “variable” to “fixed” for media (changing from $1.35 to $1.80…not sure how $1.35 was “variable” though…).

You seem to be wondering whether the closing fee and current referral fee composition (percentage of price + shipping) were redundant methods of reducing books priced at 1¢.
:small_blue_diamond:Referral fees based on price + shipping primarily affect FBM offers.
:small_blue_diamond:Closing fees apply to all BMVD, both FBA and FBM.

This way, regardless of fulfillment method, Amazon gets the closing fees AND makes the media offer strategy of underpricing the item and overcharging the shipping less appealing to FBM.

In this way, changes 2 and 3 above were not redundant but likely both contributed to a single Amazon goal.


#19

Yes, basically because they can.

Once upon a time it was $1.35 and came directly off the shipping allowance. It was a shipping skim, pure and simple. Only with a much more hypocritical name.

Then they got more creative with their bookkeeping and naming and transferred it away from shipping directly to the order, and called it a closing fee.


#20

Are you asking why the closing fee does not apply to all categories? I suspect that it has to do with historical “abuses” in the media category that were/are simply not able to be duplicated in other categories. :woman_shrugging: