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Wed Dec 4 2013 18:18:42

Amazon Sellers React to FBA Fee Hikes...Not

By: Julia Wilkinson

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Is it me, or do Amazon sellers care less about fee hikes than sellers on...other large online marketplaces with third-party sellers? Today, Amazon sent an e-mail to FBA (Fulfillment by Amazon) sellers announcing the 2014 FBA fee changes. Or is it that the rate hikes aren't really that big? In this latest announcement, the fees for Amazon FBA "Pick & Pack" for media and non-media items are going up 2 cents ($.02) on Feb. 18, 2014. Order Handling fees will stay the same.

The larger and heavier the items are, the more the fees are going up. Weight handling fees for Small Standard Size (1 lb. or less) items are going up 4 cents to $.46 from $0.42. Large Standard Size weight handling fees are going from $0.46 to $0.55.

And Large Standard Size items' weight handling fees go up the most if they are over 2 lbs., and the scaled rate based on anything over 2 lbs. will go up a bit too. For media items, it will be $0.82 + $0.41/lb. above the first 2 lbs.; and for Non-Media items, $1.34 + $0.39/lb. above the first 2 lbs. This is as opposed to the previous Non-Media weight handling fees of $0.99 + $0.38/lb. above the first 2 lbs.

And there are other oversized item fees; check the FBA 2014 Fee Changes page for more details.

Will We See More Apparel on Amazon?

Speaking of "Non-Media" items, tucked into this announcement is this little nugget: "Apparel Handling Service: In May 2014, we will introduce an apparel service with fees to reflect the added requirements for handling, storing, and packing apparel products. By February 18, 2014, we will provide a full rate card and other details."

Could this mean we will see used clothing on Amazon? I doubt it, but they may be encouraging more sales of new and "collectible" clothing from more third-party sellers. This is how it is with Amazon's toys, where the condition can only be "New" or "Collectible." (And if collectible, I doubt you'll get anyone describing stains, because they won't be allowed).

Amazon Ships Twice as Many Prime Items than Free/Super Saver Shipping

Amazon touted that it has added "millions of customers" to its Prime program in 2013, which FBA sellers benefit from. "More Prime members means higher sales for FBA sellers," the email went on to say. And, "With expanded delivery options such as Sunday delivery in select locations, more customers can receive their orders sooner."

In one of the Amazon online groups I hang out in, people were more interested in commenting about a photo of one seller's foyer jammed with huge stacked taped-up packages ready to go to Amazon Warehouse La-La-Land, than a post about the new rates.

I guess people are too busy power-taping their shipments up to care. Now, above the post about the fee hikes, someone posted a photo of  "Canned Unicorn Meat" with the caption, "Wow, they sell EVERYTHING on Amazon. Jeff Bezos didn't lie the other night on 60 Minutes!"

Do Amazon sellers care less about fees than, say, eBay sellers? What do you think of the rate hikes if you are an Amazon seller? Do you use FBA and how well is it working for you? If you don't, do the new stats on numbers of Prime members tempt you to start? Post a comment here!



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Perminate Link for Amazon Sellers React to FBA Fee Hikes...Not   Amazon Sellers React to FBA Fee Hikes...Not

by: pace306 This user has validated their user name.

Wed Dec 4 23:33:10 2013

"Is it me, or do Amazon sellers care less about fee hikes than sellers on...other large online marketplaces with third-party sellers?"

Well... if you mean eBay then you are %100 correct.

Let me explain why ..

If/when I put up a product on Amazon via FBA and I have the bos, I can move 100 of something in a night (headphones, boogie boards, phonograph carts etc). On eBay Im hard pressed to move 100 a month.

Plus I have to spend my time fleshing out eBay catalog, the catalog that eBay does have has wrong info in it, eBay is ULTRA fussy on pic quality/boarders/text etc, and when you tangle with Cassini, you loose most of the time since the "secret sauce" is hidden.

On Amazon I just add inventory, send it in to FBA and sit back.

So when Amazon raises thier fees - do I like it? NO - but at least they work WITH ME, not AGAINST me like eBay does.

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by: JustTheFacts This user has validated their user name.

Wed Dec 4 23:49:44 2013

FBA is not the only HIKE amazon just announced.  web stores are going from $39.99 to $79.99.

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by: thebobman This user has validated their user name.

Thu Dec 5 00:24:01 2013

100 in a night? I can't even source that many of an item with enough of a markup to make it worthwhile. (I pretty much won't touch something unless my markup is 200% or more). I do mostly one offs, and that would suck for FBA. I bought 2 projector bulbs that came in a lot and paid about $1 each for them. I listed both this morning for $50 each and sold one of them already (~5000% markup).


I make more money selling 10 items a day than I bet a lot of people selling 100 items. My record markups have to be the 13,900% on a $5 item or the 160,000% markup on a 50 cent item.

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This user has validated their user name. by: Anonymous Annie

Thu Dec 5 06:03:35 2013

Even with fee hikes, it's easy to see what the better value is.

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by: giftcentral This user has validated their user name.

Thu Dec 5 06:49:48 2013

Amazon's fee hikes are nothing compared to E-bay's.  Plus, Amazon doesn't take a leak on your back and tell you its raining, like another (wink wink) site does.  Thus, their hikes are much easier to swallow.  

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by: pace306 This user has validated their user name.

Thu Dec 5 10:08:20 2013

Thebobman ...

Im in the electronics category - getting a closeout or a buy in for a 100pc of something is nothing.

BUT I dont have margin on them as you do. Im wuite happy to make my regular margin on standard items, but make much less on "deals".

Besides :) I dont have to pack em, I dont have to buy tape or boxes and my time can be spent doing other things.

Yes Amazon does take advantage ...Im sure the new fees are for "buying drones" and othe such sillyness - but its their sandbox and if I want to go for the ride in it - I have to play by the rules.

But whats most important here is that AMAZON (tries?) to work WITH you, while eBay works against you.

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This user has validated their user name. by: juliawww

Thu Dec 5 13:40:23 2013

JustTheFacts interesting..good catch! Do u have an Amazon webstore and how do u like it if so?

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This user has validated their user name. by: juliawww

Thu Dec 5 13:41:37 2013

Pace good point! I hae been really happy w/ my FBA sales lately.

Just checking...when u say ''If/when I put up a product on Amazon via FBA and I have the bos..'' ..do u mean box? Or is that an abbreviation? Thx!

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by: pace306 This user has validated their user name.

Thu Dec 5 15:11:39 2013

Lol yes the box - typo

Perminate Link for Amazon Sellers React to FBA Fee Hikes...Not   Amazon Sellers React to FBA Fee Hikes...Not

by: JustTheFacts This user has validated their user name.

Thu Dec 5 22:48:27 2013

@juliawww
I do not think I have a amazon webstore.  I now sell on Amazon.com which I think is different?

I just start a little about a month ago so I am trying to understand it.

As for sales there.  Well not too impressed.  I am hoping it is just because I only have a small amount of inventory listed so far.

If what I am selling so far is all I could expect, well I think just making a sign and pan handling will probably bring me in more money..lol

Thankfully I have my website and and a few other sites as well.

I also noticed that getting FB on Amazon is nearly impossible. At this rate all it would literally take is just ONE bad FB and your gone.  

Perminate Link for Amazon Sellers React to FBA Fee Hikes...Not   Amazon Sellers React to FBA Fee Hikes...Not

by: thebobman This user has validated their user name.

Fri Dec 6 16:00:29 2013

FB on Amazon is a bit less relevant.  I've had about 1,000 orders in the last year, and 89 feedback. what counts more is delivery time and claims. Since I ship myself, almost everything arrives in 2-3 days and I get bonus points on orders (721 out of 1045 got bonus for fast delivery and no issues). My seller rating over the last year is 109,810 points over 1,052 orders.



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