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Tue Feb 14 2012 11:43:53

Will Amazon's Latest FBA Seller Fees Change How You List?

By: Julia Wilkinson

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Amazon's FBA ("Fulfillment by Amazon") fees for Pick & Pack changed on Feb. 1 for many types of items: for media items under $25, the "Pick & Pack" fee went up from $.60 per unit to $1.00 per unit. For non-media items under $25, the Pick & Pack fee went up from $.75 to $1.00 per unit.

The increase also affected oversize Items; the Pick & Pack fee going up to $6 per unit from $3.

Also, in a change that will likely see a big decrease in the amount of small and/or lightweight items shipped to FBA warehouses, the "Weight Based Handling Fee" (per pound), while going down from $.40 to $.37, will also be based on items being rounded up to the nearest pound.

This means if you sell six 4 oz. items, the cost to handle them will not be based on 24 ounces, but 6 pounds, as each 4 oz. item will be rounded up to one pound.

Most of what I ship to Amazon via FBA are standard-size books, but I have shipped a number of small, lightweight books that are more like pamphlets or brochures (most on obscure topics; those tend to sell better anyway), along with bigger books as well. Now I will be keeping those small, thin books exclusively in my home office, which won't be difficult as you can easily store a whole mess of them in one or a few cardboard office boxes.

In terms of the oversize items, unless they are high dollar-value items where the new $6 Pick & Pack fee is negligible, it won't be worth it for me to ship these big "coffee-table" books to Amazon. More likely, I will be stacking them into something like a "coffee table" of their own...one made of many oversize books!

For Amazon sellers, there is also pressure not to send stuff to FBA that's going to fester unsold for more than a year;  long-term storage fees of $22.50 will be applied to any units have been stored in an Amazon fulfillment center for one year or longer, according to the Amazon FBA Manual. (This is in addition to the regular Inventory Storage Fee, but Amazon will not charge you  if you make a request  "to remove or dispose of the Units prior to the fee being charged").

While it's impossible to know exactly what will sell in under a year, you can look at cues like an item's sales rank, and how quickly the same item has sold for you in the past. (My vintage Betty Crocker cookbooks, for example, rarely go unsold for more than a few months if they're priced fairly).

Still, I will be sending fewer items I'm not sure about to Amazon's FBA warehouses from now on.

If you sell on Amazon and use FBA, how will the fee changes affect your selling practices, if at all? Do you use FBA now or just store your inventory yourself? If you do not use FBA now, would these fees change whether you decide to try it or not? Post a comment here! You can also comment in the AuctionBytes Facebook Group.




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Will Amazon's Latest FBA Seller Fees Change How Your List?   Will Amazon's Latest FBA Seller Fees Change How Your List?

by: Wire This user has validated their user name.
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Tue Feb 14 13:05:50 2012

I've been selling on Amazon with FBA for 6 months now. The fee increase will not cause me to rethink about moving away from ebay to Amazon right now. Even with the increase, I'm still make more than on ebay, plus I dont have to deal with the customers or pack and ship the orders. Now I have a lot more time to run my business than work in it.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

This user has validated their user name. by: juliawww
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Tue Feb 14 14:06:31 2012

I agree about time, Wire. It's soooo much faster to list on amazon. Tho my guess is eBay is going to look for ways to shorten that gap (one can only hope). But with as many unique items as they have it's going to be hard to have a database of stock product images/info the way Amazon does.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

by: dismal_scientist This user has validated their user name.

Tue Feb 14 14:34:49 2012

The new fees are just cutting into our already small margins for most items.  The .75 to a 1.00 isn't too bad, but 3.00 to 6.00 means my company is having to drop a number of lines we carry that consist of oversized items.  Some of the vendors have helped out in terms of discounts etc. but that is rare.  

The new FBA rules starting 2/25 in regards to splitting shipments to different warehouses....that is going to have a drastic negative affect on how we do business.  Who knows how bad it will get.

E-commerce is Amazon's world.  We just all work in it.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

by: consultnerd This user has validated their user name.
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Tue Feb 14 14:54:53 2012

Here is one correct.  The Long-Term Storage fee ONLY affects items that you have more than ONE of in Inventory.  If you have one, it can stay there forever,and you only pay normal storage fees.  It is only on items that you have Qty of,so you can't store you junk at the AZ Warehouse.

And for the Oversize Fee, it is only $3 more per item, still much cheaper that I can handle on my own (Remember that AZ FBA is a Fulfillment service), and for most items, $3 more is not going to change anything.

Fees on ANY site are going to change, and you need to change with them.  eBay has price changes every year at least once. And when people factor in all the eBay/PayPal fees, and the increased price you can normally realize on Amazon FBA, and the ease of listing on Amazon FBA that is so much easier than listing on eBay, it is a no brainer on most items.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

by: dismal_scientist This user has validated their user name.

Tue Feb 14 15:16:47 2012

I disagree.  A $3 increase for oversized items is a huge increase, 100% in fact.  I do roughly 30k oversized orders a year.  Do the math.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

This user has validated their user name. by: Nan
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Wed Feb 15 09:02:44 2012

>>>If you sell on Amazon and use FBA, how will the fee changes affect your selling practices, if at all?

I've been selling via FBA since last August.  Most of my inventory consists of one/each type items (99% media) so I pay very little in LTS fees.  The handling fees went up a bit, but I price on the high side of 'alike condition' anyway, so I'm letting the prices stay where they are for current FBA inventory and absorbing the .40  

Anything I send since January gets priced with a 4.99 floor.

So really, the people most affected by the fee change will be the end customer paying another dollar or so for a DVD.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

by: dismal_scientist This user has validated their user name.

Wed Feb 15 09:42:55 2012

Nan, you hit it on the head.  The fees will be passed on to the consumer in the long run.  Prices will eventually rise, as I have already seen on most of my products.  The sellers I compete with are gradually realizing the new fees.

Although the fees will be indirectly passed on  to the consumer, I do not believe it will deter them from purchasing via FBA.  In my opinion as a consumer, there is so much value in buying my personal items via FBA, instead of going to local retail stores.  It certainly saves me time and money.

Mathematically, the new fees will mostly affect the media sellers.

Will Amazon's Latest FBA Seller Fees Change How You List?   Will Amazon's Latest FBA Seller Fees Change How You List?

by: TK This user has validated their user name.

Sat Feb 25 14:52:32 2012

What the new fee structure has done is put the Non-FBA seller in a superior price position.  Many of the decent reprice tools are currently lacking the ability to change and or update prices based on the non-fba price plus shipping even though Amazon has made this new feed available.  In some case the non-fba is offering a superior price.  I may start to become a Non-FBA merchant to stay in business.  



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