Amazon Seller Fees
Is anybody else extremely frustrated with the current Amazon seller fees?
I am working as a reseller to distribute products to Amazon customers and over 1/2 of my small profit margin is automatically deducted by Amazon, and around the same amount of the "Referral" fee being deducted for shipping.
For example; a product that cost me $25 is being listed for $35,
Amazon automatically deducts a referral fee of $5
Leaving me with $30
Followed by another deduction for shipping around $4
Giving me a profit of $1
Which directly goes to my own Merchant fulfilled packaging.
The Amazon fees are giving us little to no room for profit. We are the ones working to resell and distribute these products. I don't understand how other sellers have not made complaints regarding this issue for a change. FBA shipments are even more absurd with the seller fees. As a reseller, unless you are lucky with stock items, there's not much room to make profit at a target price. Raising prices does not fix the issue because doing so removes you from being featured.
I am at a loss financially. I guess reselling from major retailers is not a good idea here. Where else is there to find products good quality and genuine with today's inflation rate. also, I've read the similar discussions which seems like others are having the same complaints with these issues. Where is the change being done?
1 reply
Cooper_Amazon
Good Evening @Seller_kfVn2YBhJ539o,
I wanted to stop by and see if there was something in particular I could assist/address in regards to your feedback on different fees?
There was a large fee update about 4 months ago that provided quite a few updates, I wanted to share with you HERE.
I noticed you mentioned referral fees being a big impact to your business. The update mentioned, "We will reduce referral fees for apparel products priced below $20. For items priced under $15, we will decrease referral fees from 17% to 5%. For products priced between $15 and $20, we will decrease referral fees from 17% to 10%. Other referral fees will remain unchanged. These reduced fees will apply starting January 15, 2024."
I also wanted to link the referral fee help page just in case you would like to review it. If you have any questions please don't hesitate to reach out to us on this discussion or you may contact Selling Partner Support at anytime. Looking forward to hearing from you soon. Have a lovely rest of your week and take care.
Sincerely, Cooper_Amazon
