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Amazon Fees to Rise for Handmade Sellers in August

Amazon sellers who sell on its new Handmade marketplace received good news and bad news regarding fees this week.

First the good news: Amazon is extending its promotional monthly subscription fee waiver through the end of 2017. That means sellers who list primarily on Amazon Handmade won’t have to pay the $39.99 monthly Professional selling plan subscription fee until 2018.

Amazon explained, “To help artisans grow their businesses on Amazon, we are extending our promotional monthly subscription fee waiver through the end of 2017.”

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Now the bad news: Amazon is increasing the referral fee from 12% to 15% on sales in Handmade at Amazon. The marketplace explained:

“Sellers pay a referral fee on each item sold. Starting August 1, 2016, the Handmade at Amazon standard category referral fee of 15% or the applicable minimum referral fee of $1.00 will apply to all Handmade at Amazon category transactions.

“Before August 1, 2016, the current Handmade at Amazon promotional category referral fee of 12% or the applicable minimum referral fee of $.50 will apply to all Handmade at Amazon category transactions.”

On the one hand, the delay in imposing monthly subscription fees indicates the Handmade marketplace is important enough for Amazon to be patient with fees; on the other hand, it could indicate that not enough sellers are making enough sales on Handmade to feel comfortable paying the monthly fee.

Learn more about Amazon Handmade fees on the Amazon website.

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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