This fee increases by as much as 150%! From January 18, the burden on Amazon sellers is heavier...

In 2021, the first-way freight, raw material cost, labor cost, product promotion cost, etc. will all show an upward trend, but the price and order volume of the most important products for sellers will never rise.

The profit margins of sellers have been continuously compressed. They thought that 2022 was a new beginning, but the reality immediately woke up cross-border people.

Because starting January 18, 2022, Amazon will have six fee increases! Among them, "FBA removal and disposal order fee changes" increased the most.

For sellers, a batch of goods has been shipped from China to FBA. In the early stage, a lot of investment has been made in a series of costs such as product cost, transportation, warehousing, and advertising.

However, the product has been removed by Amazon for various reasons, which may be due to infringement, review, or other circumstances. Or because it can't be sold at all in the low-price spiral war...

In this regard, sellers have to reluctantly choose to move the inventory products in the FBA warehouse to overseas warehouses or other places, or choose to discard them and entrust Amazon to "help" to throw away the inventory in the FBA warehouse.

However, whether it is to remove or discard, it is a difficult choice for sellers, which indicates that this product has encountered temporary or permanent operational setbacks. Some can be re-entered after changing the label, while others have disappeared forever on Amazon. on the platform.

Now, it seems that the seller's last "return to the bottom" fee will also rise, and the rate of increase is not small.

Removal and disposal order fees
Take the common standard size products from 1 pound to 2 pounds as an example, from $0.48 to $1.14, an increase of 130%.
Take the bulky commodity under 1 pound as an example, it has risen from 0.6 US dollars to 1.5 US dollars, an increase of 150%.

The rise in removal and disposal costs once again reminds sellers and friends to choose products carefully, carefully, and more carefully.

If you recklessly carry out FBA shipments without doing sufficient product and category research, assuming that this batch of goods will become unsold unsold inventory in the future, even if you want to "throw it away", you will pay more than before. greater cost.

In addition to the removal and disposal costs that have increased the most, Amazon's logistics costs, storage costs, commissions, etc. will also increase to varying degrees.

Logistics costs
Small, large and oversized items will see an average net increase of $0.20 per item. Amazon charges anywher from $0.50 to $12 more for larger items.
Merchants in particular should focus on medium and extra-large products, wher prices rose by 0.05 cents per pound. According to the actual delivery process, it may also be a considerable expense for the seller.

Apparel categories will see similar gains, at around $0.20 per item, with larger products likely to rise by $0.50 per item;

Shipping costs for shipments classified as dangerous goods will also increase, ranging from 20 cents to $13.

storage fee

Effective February 1, 2022, Amazon's storage fees will increase to the following levels:

January to September: $0.83/cubic foot (standard), $0.53/cubic foot (extra large)
October-December: $2.40/cubic foot (standard), $1.20/cubic foot (extra large)
From January to September, it increased by 0.06 cents per cubic foot, and the storage rate was unchanged from October to December
Additionally, from May 15, 2022, a surcharge will be imposed on expired inventory.

Fees include 271-365 days of cargo delivery at $1.50 per cubic foot. The standard fee for 365 days (or more) remains the same at $6.90 per cubic foot (or $0.15 per unit).
Commission
When merchants sell products on the platform, the platform charges a commission in return for letting third-party sellers sell on their site and gain a large customer base. The commission rate will vary according to the category, the following are some of the more popular category commissions:

Books: 15%
Cameras and Photography: 8%
Consumer Electronics: 8%
Electronic accessories: 15% for sales below $100, 8% for sales over $100
Home and Garden: 15%
Kitchen: 15%
Office supplies: 15%
Toys and games: 15%
Beauty: 8% on products priced under $100 and 15% on products priced above $100.
Complete commission information can be obtained by visiting Amazon Seller Central

Despite the increased commissions, Amazon's services are typically around 30% cheaper than other e-commerce platforms.

In addition, Amazon announced an adjustment that will reduce the commission rate for lawn mowers and snow plows from 15% to 8%. And this rate adjustment only applies to products priced over $500.

Prep and Labeling Service Fees

Amazon will increase Fulfillment by Amazon (FBA) prep service fees to align with Amazon's operating costs for labeling, plastic bag packaging and packaging.

Small and Light Program Fees

For FBA Small and Light, Amazon will increase the maximum weight requirement for items from 12 ounces to 3 pounds.

In 2022, a difficult start to the year, sellers must remember to "open source" and learn to "reduce expenditure". Don't ignore those inconspicuous "hidden costs."