The honeymoon period for Amazon Webstore is over – Amazon is significantly raising the cost of operating a Webstore next year, perhaps a sign that the company is more confident of the offering.
The monthly fee will double for all merchants, and those using Amazon Webstore who also sell products through the Sell on Amazon program will pay double the current transaction fee as well, bringing it in line with Webstore-only merchant transaction fees.
One way of looking at the new pricing is this: Amazon Webstore had charged the same monthly fee as it cost to operate as a Pro Merchant on Amazon.com, and had let Pro Merchants use Webstore for no additional monthly fee. Now Amazon Webstore charges a $79 monthly fee, and if you have a Webstore, you won’t have to pay the $39.99 Pro Merchant fee.
While one might surmise – or worry – that Amazon could be considering a bump in Pro Merchant fees, Amazon has given no such indication. But then again, it rarely tips its hand. An increase in fees of any size would be most unwelcome by sellers on Amazon.
Amazon also charges Webstore merchants a 30-cent transaction fee and a percentage fee of 2.90% (down to 2.10% depending on monthly revenue) on all transactions.
The new fees go into effect on February 4, 2014.
Online sellers use Amazon Webstore to set up their own ecommerce-enabled stores using Amazon technology. It’s a turnkey solution, and brands such as Fruit of the Loom and Marks & Spencer as well as small merchants have used Amazon Webstore to set up online stores.
Amazon Webstore fully integrates with services such as Fulfillment by Amazon and Checkout by Amazon. The Webstore solution also shares a listing platform with the marketplace – sellers who sell on their own website powered by Webstore can also list and sell their products on Amazon.com as well.
Amazon is also raising fees for merchants who use its FBA Fulfillment by Amazon service as recently reported. Those new fees take effect on February 18, 2014.
More information about the new Webstore fees is available on the Amazon website.