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Thread: New FBA fees starting in February
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Permlink Replies: 26 - Pages: 2 [ 1 2 | Next ] - Last Post: 14 Feb, 2013 11:13 AM by: ZIVA
B-Gal Wigs &amp...

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Registered: 05 Mar, 12 5:36 PM
Posted on: 04 Dec, 2012 9:16 PM  
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I was surprised to come over here and find no one posting about this. Maybe I'm the last one to know? LOL!

I can't decide how I feel about the new fee structure. Ambivalent? On the one hand, there is a 9 cent increase in the weight handling for items up to 1 lb. (which most of mine are), but on the other hand, at least they have attempted to come down on the ridiculous $6 oversize charge.

However, now they've got this ridiculous "small standard size" and "large standard size" and "small, medium, large and special" in the oversize, and it seems like it's just going to be a cluster with all those measurement options. Not to mention Amazon has never been very good about their "measurements." I used to sell an item that wasn't oversize, and one day, I noticed them taking this huge chunk (to the point of negative numbers!) for oversize. I had to fight them for about two weeks, but they finally measured and determined that I was right. They didn't know why it got changed to oversize. They did refund me all the oversize fees for those orders as well.

But how much fighting do I want to do? I've started self-fulfilling almost everything now when it used to be the other way around. Between the increase in fees and now the Add-On thing, it's just not worth it for my top sellers. I might start looking into some more expensive items for FBA (has to be at least over $10 for me not to worry it will be changed to "Add On") and maybe reintroduce some stuff I had taken out now that there has been at least a slight reduction in oversize, but counting on Amazon to accurately measure scares the krap out of me.

Anyone else have thoughts on this?

http://www.amazon.com/gp/help/customer/display.html?nodeId=200789180#Product-size-tiers

Edited by: B-Gal Wigs & Costumes on Dec 4, 2012 9:17 PM

Edited by: B-Gal Wigs & Costumes on Dec 4, 2012 9:17 PM
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NextGen Gamer

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Registered: 03 Mar, 12 2:30 AM
Posted on: 04 Dec, 2012 9:38 PM   in response to: B-Gal Wigs &amp... in response to: B-Gal Wigs &amp...  
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If you want to win the Buy Box on a regular basis, you really have no choice. Self-fulfilled featured merchants really have the deck stacked against them, even if they beat the FBA price by a good amount.

The FBA price changes aren't that big a deal compared to changes made over the last couple of years. That's why there's no outrage. We already got that out if our systems :-).
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B-Gal Wigs &amp...

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Posted on: 04 Dec, 2012 11:48 PM   in response to: NextGen Gamer in response to: NextGen Gamer  
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Not really. I sell a lot of things where there are no FBA sellers (item cost is too low) so I control the buy box most of the time. Even if I don't, when the one or two lone FBA sellers run out, I get 100's of orders a day. I just have to wait them out, and I'm making three times the profit they are. I sell things FBA, too, but I think the mix of merchant and FBA fulfilled works - at least for me. :)
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Texas Angel

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Posted on: 05 Dec, 2012 12:08 AM   in response to: B-Gal Wigs &amp... in response to: B-Gal Wigs &amp...  
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I was very critical of the prior FBA fee changes, but this one actually was done right, so I'll give credit where it is due.

I get the small increase in standard size weight fees. They are just taking back the reduction from 40 cents to 37 cents, kicking it up to 42 cents.

But that shouldn't be an issue for anyone, shipping costs do go up.

The nice thing is that oversize items are going down in fees, this was a major issue the last time around, $6 for oversize vs $1 for standard size did not make any sense at all.

They didn't completely fix it, but it does help.
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bingo

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Posted on: 05 Dec, 2012 3:46 AM   in response to: Texas Angel in response to: Texas Angel  
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Going from $6 oversize to $4 for small oversize is like Christmas in February to me.
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Harun

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Posted on: 05 Dec, 2012 11:52 AM   in response to: bingo in response to: bingo  
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Well, the way they used to define "oversize" was so crazy.

Many of my items will become large oversize which will suck, but I will just raise prices and hope the consumer can take the hit. I guess they will since prices for things have been going up all over the place.

What really sucks is when your product is over the limit to the next size up by 3". Grrrrrrr.
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Shop Daddy

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Registered: 05 Dec, 12 9:43 PM
Posted on: 05 Dec, 2012 1:47 PM   in response to: Harun in response to: Harun  
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having tiers for oversize is an improvement, but why have tiered pricing based on size? why not just charge per inch? everything in FBA is measured and weighed, I don't see need for tiers. Charge for the actual size and weight. tiers may help sellers predict costs easier, otherwise i don't see the logic. thoughts?
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Mountain Laurel...

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Registered: 02 Mar, 12 3:13 AM
Posted on: 05 Dec, 2012 2:00 PM   in response to: B-Gal Wigs &amp... in response to: B-Gal Wigs &amp...  
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The biggest problem I see for our business is this:

Why are you introducing a Returns Processing Fee?

The Returns Processing Fee applies to products in selected categories where Amazon’s stated policy offers free returns to customers, which helps to build customer trust and to encourage purchase. These categories include Apparel (including Sports Apparel), Watches, Jewelry, Shoes, and Luggage. The Returns Processing Fee helps offset the additional cost incurred for offering and processing free shipping for returns.

How will you calculate the Returns Processing Fee?

The Returns Processing Fee will be equivalent to the total fulfillment fee (Order Handling, Pick & Pack, and Weight Handling) for a given product using the rate card above. This Fee will only apply to units actually returned by customers, and only for products sold on Amazon.com in selected categories for which we offer free customer return shipping—currently the Apparel (including Sports Apparel), Watches, Jewelry, Shoes, and Luggage categories. When calculating the Returns Processing Fee, we assume a single unit per shipment. In addition, products that were eligible for Zero-Fee Fulfillment will be subject to the Returns Processing Fee; in other words, when calculating the Returns Processing Fee, we assume the sale price to be less than $300. In the case where Amazon takes responsibility for loss or damage to a returned product (for example, lost or broken in transit), the fee will not be assessed.

Please note that in cases where multiple units have been shipped to a customer in a single order, the Returns Processing Fee paid on a single unit may be higher than the fulfillment fees. This can occur because we assume a single unit per shipment when calculating the Returns Processing Fee.

How can I estimate the impact of the Returns Processing Fee?

You can use the Returns report in Seller Central to look up your historical returns, and our fee calculations above to determine the expected fee per unit. As noted above, the Returns Processing Fee only applies to returns in certain categories.

We sell a lot of apparel. That is one of the high return categories because it's hard to buy clothing online without being sure of sizing. SO, the FBA fees for an item will be $2.42 for a 1 lb item. Then if the customer returns the item, Amazon charges us $2.42 again?? That's the way I'm understanding it.

Here's the breakdown of a transaction of ours which was then refunded.

Purchase price: $20.00

Amazon fees
Commission: -$3.00
FBA per order fulfillment fee: -$1.00
FBA per unit fulfillment fee: -$1.00
FBA weight based fee: -$0.37 (This will be $.42 after fee changes)


Change to your seller account balance $14.63


So we received $14.63.

Customer then returned item:

Amazon fees
Commission: $3.00
Refund commission: -$0.60


Change to your seller account balance -$17.60

So we're already in the hole $2.97 after all is said and done, because Amazon keeps most of their fees right? Then add another $2.42 on top of that once the new changes take effect? That's absolutely crazy.

My math could be way off, and I hope it is.

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GGGifts

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Registered: 01 Mar, 12 8:29 PM
Posted on: 05 Dec, 2012 6:20 PM   in response to: Mountain Laurel... in response to: Mountain Laurel...  
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I sell jewelry and I am NOT at all happy about the new fees for processing refunds. FBA used to be fantastic, but they keep making all these changes and I don't know if I can keep up. I thought they wanted more FBA sellers!? They are running us off with all the ridiculous changes and fee increases. There needs to be a line drawn somewhere with their desire to be the most customer-centric company on the planet. It's just getting to be silly now.
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Zelda

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Posted on: 05 Dec, 2012 8:40 PM   in response to: Mountain Laurel... in response to: Mountain Laurel...  
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Given we sell shoes, we're concerned about the returns processing fee too. The way I read it is that for returns, the fee is the amount of the Amazon fee. So, if we sell a pair of shoes for $47.99 and the Amazon fee is $9.94, and the customer returns the shoes, our charge is $9.94. Am I understanding correctly?

Information on fee changes: http://www.amazon.com/gp/help/customer/display.html?nodeId=200789180
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Harun

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Posted on: 05 Dec, 2012 9:57 PM   in response to: GGGifts in response to: GGGifts  
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They control the sales channel. The logical end result is that we don't make any money, and they make it all. We probably will end up with a low salary type of profitability.

Time to explore other options.
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bingo

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Posted on: 06 Dec, 2012 4:27 AM   in response to: Harun in response to: Harun  
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We don't sell in clothing, shoes or jewelry. If we did, I would not be happy. I'm thinking shoes and clothing have a high rate of return as it is. It would seem Amazon is trying to deter FBA in those categories.

As far as charging fees in tiers versus more specific sizes, I do think it's much easier for sellers to calculate costs this way. It's also easier for warehouse staff.
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PammyJ

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Posted on: 06 Dec, 2012 8:32 AM   in response to: bingo in response to: bingo  
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As I understand it the return fees are only for Damaged items. I'm going to send in a feedback asking that the customer contact the seller first before shipping it back. If it is in fact damaged we can send a replacement and they can discard the damaged piece. I have done this before and it works well all around.
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StoptheMadness

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Posted on: 06 Dec, 2012 8:50 AM   in response to: PammyJ in response to: PammyJ  
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PammyJ wrote:
As I understand it the return fees are only for Damaged items. I'm going to send in a feedback asking that the customer contact the seller first before shipping it back. If it is in fact damaged we can send a replacement and they can discard the damaged piece. I have done this before and it works well all around.

What would they do if everyone started to self full fill again, Im sure there will always be people that dont understand Fba, and will do it for a short time until they close up shop.

Everyone go back to self full fill and what in the world would they do with all those warehouses.

Fees are never going to go down, and will always go up, so I can only imagine its only a matter of time, before the profit is so little that no one will want to do it.

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Mountain Laurel...

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Posted on: 06 Dec, 2012 10:52 AM   in response to: PammyJ in response to: PammyJ  
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PammyJ wrote:
As I understand it the return fees are only for Damaged items. I'm going to send in a feedback asking that the customer contact the seller first before shipping it back. If it is in fact damaged we can send a replacement and they can discard the damaged piece. I have done this before and it works well all around.

I don't see anywhere it says that.

The only mention of damaged items is here "This Fee will only apply to units actually returned by customers, and only for products sold on Amazon.com in selected categories for which we offer free customer return shipping—currently the Apparel (including Sports Apparel), Watches, Jewelry, Shoes, and Luggage categories. When calculating the Returns Processing Fee, we assume a single unit per shipment. In addition, products that were eligible for Zero-Fee Fulfillment will be subject to the Returns Processing Fee; in other words, when calculating the Returns Processing Fee, we assume the sale price to be less than $300. In the case where Amazon takes responsibility for loss or damage to a returned product (for example, lost or broken in transit), the fee will not be assessed"
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