Amazon recently announced major changes to its fee structures involving sellers, shipping, and storage. These changes could have far-reaching effects on retailers who use the platform to sell their products. In this article, we look at the most important aspects of the new fees and give practical tips on how traders can react to them.
The changes are part of Amazon's ongoing efforts to expand its logistics and service infrastructure and cover rising costs. While some changes respond to global market developments, others aim to make the use of warehouse capacity more efficient.
Amazon has increased sales commissions for specific product categories. Electronics, fashion and household goods are particularly affected, with commission rates rising by 1-3%.
The fee changes vary by product category. While categories with low margins are more affected, others, such as luxury goods, could see less drastic changes.
Fulfillment by Amazon (FBA) is an important pillar for many retailers. Shipping fees for FBA are being increased, with price adjustments graded based on the weight and size of the items. Smaller and lighter items are less affected than bulky products.
For international retailers using Amazon's global marketplaces, higher shipping fees to various countries are also being introduced. This could increase the costs of cross-border trade.
Amazon has significantly increased storage fees for goods that are stored longer than 365 days. The aim is to minimize the storage of slow-rotating items.
Monthly storage fees for using FBA warehouses are also increasing. Fees are significantly increased, especially at peak times, such as at Christmas time.
Retailers should regularly review their product range and remove less profitable products from their range in order to reduce storage costs.
By better inventory planning, retailers can avoid excessive storage fees. This can be supported by using warehouse management systems.
A precise calculation of margins and an adjustment of prices to the new fee structures are essential to maintain profitability.
Many retailers express concerns that rising costs could reduce margins and impair competitiveness.
At the same time, some retailers see an opportunity to rethink their business models and implement more efficient processes that provide long-term competitive advantages.
Amazon's new fee changes pose challenges for retailers, but also offer opportunities for optimization. By proactively adjusting business strategies, traders can ensure that they continue to sell successfully on the platform.
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