Amazon Takes Too Much from Us
It's getting to the point where it's not sustainable anymore. Within the past year, Amazon has constricted profitability and growth to where it's just about a complete standstill. After all calculations are done, pretty much working for free now. They've made it where you can't survive or thrive on their platform without giving them a minimum of 50% of sales. They've done this by hiking up fees, and making it where you have to spend heftily on ads. And if not.....minimal sales and visibility. They've made products harder to find by relevant organic search. It's gotten crazy, it's too much for what it's worth now.
It's really unfortunate, as we've been in business for almost 20 years. Amazon has almost 40% of retail market share, possibly more by this year. A LOT if not most retailers rely on them to stay in business. For the 1st time in 20 years..... about to throw in the towel. We have to price our sh#% higher than we want to just so we can pay all the fees, and the pay to play tactics. It's really really crappy on Amazon's part to do this to sellers. It's really really crappy that they do this to their customers.
48 replies
Seller_i6S8knzW6zU6Z
Hi @Seller_BYn3ICHDweKIc,
I think many of us can relate to feeling this way at some point. It reminds me of that quote from Rocky: "It ain’t about how hard you hit; it’s about how hard you can get hit and keep moving forward."
There are certainly product categories where the economics just don’t work—click prices have gotten so high that breaking even feels impossible. Unfortunately, that’s the reality in some areas.
The key is to focus on whether there are still opportunities (categories or niches) where it makes sense to operate. With your 20 years of e-commerce experience, I’m confident you can still find places in the pond where it’s worth fishing.
Wishing you the best,
Michael
Seller_kUy3lOm5llD4g
I am also struggling with this. I'm by no means a big seller on this platform, just a single mom of 3 trying to pay my bills. I have sold on here for a few years though and I've never had an issue like I'm having now. Anytime I try to call support for the issue and asking why are the amazon fees so high they tell me to go through each transaction to see the fees, I'm totaling 30% of what they are actually charging me.
Maybe someone here can help me make sense of it...
Beginning Balance: $374.34
Sales: $986.60
Shipping: $3.84
inventory Reimbursements: $34.25
Other: $8.48
Refunded expenses: $50.33
Refunded Sales: -$258.28
Promo rebates: -$3.83
FBA Fees: -$103.75
Advertising: -$105.12
Shipping Charges: -$61.75
Amazon Fees: -$383.72
Other: -$4.43
Account Level reserve: -$474.06
Net Proceeds: $62.88
Is there a new hidden fee in the Amazon fees? I have never started with $374 in my account, then had $900 in sales but only get $62 check. That was my last pay statement. The current one has my net proceeds and account level reserve less than my beginning balance with addition to me making sales?? I am so confused.
The advertising charge is bologna too. I was overpaying for advertising a product (that was my fault) but on the product I have the setting applied to raise and lower my price to ensure the buy box. After looking into it I saw that they weren't actually lowering my price when they should have, which meant I was paying to advertise for someone else to get the buy box. Couldn't get help with that issue either.
I have a business loan through amazon just to try to get caught back up with business. They charge me 15% of the weekly sales. I literally can't even afford to pay them the 15%. How can I pay $147 when my net is only $62???
Seller_6CL4jjlEJs4vR
The return rate is too high and inexplicable, which I strongly dislike.
Seller_GvRH5MSoMBmh9
It's true. I feel like I'm working for Amazon for free. I plan to quit.
Seller_bEpehKABXmZnP
I don't know what problems sellers who have been in business for a long time run into, but the problem I've run into as a new seller is that Amazon won't index new listings, which makes newly created listings no longer show up in searches!
Seller_3RoLAuCqvb4QW
I have said multiple times:
Everyone doing ads = No one doing ads
Seller_SNSeO3kgywz44
Completely agree. They take take take, harass harass, and blow you off, theg gate and restrict you. Impossible to grow or continue doing business with Amazon, worst year of my seven years here now.
Seller_iwGyJUWC4pcve
I am in the same boat as every one else. Since 2018, my average was around 20k-23k a month for 4th quarter, this year average is 10k a month and amazon takes a lot larger share. Then with the addition of placement fees, and everyone selling to make pennies per sale, we do not even have enough to cove the CC bill for the items. This will be the 1st time since we started (2018) that we will be at a loss. I do not even want to pay for advertising as there is no room left in the kitty. Amazon makes their money from ads so we should just stop using it, then they will have to adjust. They will not change anything as long as people put up with them.
Last few months amazon is not holding a " Account Level Reserve" on my account any longer. What I sell after fees I get after the 2 weeks. Starts off at 0 balance for the next 2 weeks. Anyone else notice no more Account Level Reserve? Nice as I do not have to wait for the money, just hard to get use to it.
Net Proceeds
11/21/2024
$693.28
Beginning Balance
$0.00
Sales
$1,225.66
Refunds
-$17.58
Expenses
-$514.80
Account Level Reserve
$0.00
Seller_wIWpQn1VUQyEa
I wholeheartedly agree. I do my accounting on a monthly basis, and total out my sales, expenses, fees, losses, etc. With Amazon, I've taken more losses than gains. Scammers and Amazon's BS regulations about returns are an absolute killer of any seller's career. The fact that any customer can return an item after it's used and expect to get 50% of what they paid, while the seller eats the wholesale cost of the item, return shipping (due to bogus return reason), and refund 50% of the sale.... WHAT?!?!?!?! I've never heard of that in any platform, not even eBay. I have storage units full of items that I can't re-sell, but have taken the loss on their return.
The cheapest item I sell is $600. Multiple that by 4 when a customer buys a set, that's $2,400. A turn of the items damaged, dented, used, scratches, unsellable, I'm required to refund half. What kind of BS is that. Amazon has made it harder to communicate with customer, no one ever answers emails from Amazon messaging, but we're required to just eat the losses? That's BS IMHO. Every seller should be able to withhold the full cost of the item, if the item is returned used and damaged. Regardless of the return reason, we should be able to charge the return shipping as well.
Seller Support is horrible, Amazon regulations are horrible, lack of customer contact is horrible... it's all horrible.
Enough venting for me, but I feel your pain.
Seller_sUCPPgZ4lnYXh
It's true. I have better sales and financial return from other platform not to mentioned easier to operate than here.
