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Thu Jan 18 2018 20:42:32

Amazon Raises Seller Fees in Fashion

By: Ina Steiner

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Amazon is raising fees in certain fashion categories while temporarily reducing fees for high-priced jewelry. The marketplace announced the changes on Thursday but did not provide a reason for the new fee structure.

The changes apply to "referral" fees, which are commission fees that vary by category. (See this page for an explanation of Amazon seller fees.)

Clothing & Accessories 
- Current fee: 15% of the total sales price, with a minimum fee of $1.00 per item.
- Fee as of April 15, 2018: 17% of the total sales price, with a minimum fee of $1.00 per item. 

Shoes, Handbags & Sunglasses 
- Current fee: 15% of the total sales price, with a minimum fee of $1.00 per item.
- Fee as of April 15, 2018: 15% on items with a total sales price up to $75, and 18% on items with a total sales price greater than $75, with a minimum fee of $1.00 per item. 

Jewelry
Current fee: 20% of the total sales price, with a minimum fee of $2.00 per item.
Fee as of February 22, 2018 (for one year only*): 20% on the portion of the total sales price up to $250, and 5% for any portion of the total price greater than $250, with a minimum fee of $2.00 per item. 

*Starting on February 22, 2019, the Referral fee for Jewelry will go back to 20% of the total sales price, with a minimum fee of $2.00 per item.

And while we're on the topic of Amazon seller fees, remember that FBA fees go up next month, and the twice-yearly Long Term Storage fees for FBA inventory will be assessed in February.

If anyone has theories on the rhyme or reason on today's announcement about fashion referral fees, feel free to share them in the comments.



Comments (13) | Permalink

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Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: DingDong This user has validated their user name.

Thu Jan 18 22:24:19 2018

It looks like Amazon needs more money to finance another headquarters.

Greedy  

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: FeelingFroggy This user has validated their user name.

Fri Jan 19 05:17:33 2018

Amazon is just trying to get a jump on Ebays raising of fees.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: Chicago48 This user has validated their user name.

Fri Jan 19 06:04:13 2018

I predict this yr we'll see across the board fees going up from Ebay to Walmart.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: epuise This user has validated their user name.

Fri Jan 19 09:37:04 2018

They just got a YUGE Tax Cut at average Americans & their children & grandchildren's expense... WHY the 'need' to RAISE fees ? #MAGA

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: pace306 This user has validated their user name.

Fri Jan 19 12:14:49 2018

As Amazon gets "better" in each category, they turn the screws on the smaller sellers who have been previously "carrying the heavy water" for them in that category.

They've done it in every other category ... these are no exceptions ..

They use 3P sellers to sell items in categories that they are weak in. Once the category is strong, Amazon then starts with restricting brands and sellers.

Once things are in high gear, they weed out the rest by raising fees.

Typical Amazon.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

This user has validated their user name. by: eXtinctBay

Fri Jan 19 12:50:49 2018

@Pace

Exactly. They want to promote Amazon Fashion with free returns, and know small sellers cannot afford to take losses on a very high returns category.

And, also, it is difficult to be approved to sell clothing on there in the first place.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: pace306 This user has validated their user name.

Fri Jan 19 12:55:36 2018

eXtinct - its near impossible - to get approval in the category - and then most brands are gated.

Who ever's left has either REALLY big pockets, or they are buy up goods in lots - from people like liquidation.com and paying pennies on the dollar since they are new returns.

I do handbags from time to time - I used to do lots more - until Amazon made it virtually IMPOSSIBLE to make sales - even when I payed %50 off list. I did MK and many others .. with very few returns - but now thats long gone.

Amazon can have the jewelry buyers with their insane returns and swapped pieces ...  

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

This user has validated their user name. by: Ming the Merciless

Fri Jan 19 13:17:50 2018

I expect the USDOJ will be looking into Amazon's anti competitive practices.

If not, send Sessions a letter explaining how this small business killing behemoth operates and ask him to investigate.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

This user has validated their user name. by: RKTOYS

Fri Jan 19 14:31:43 2018

It's really to the point where, unless your inventory "fell off a truck," these venues are a losing proposition.  I thought 15% was bad and now they think they deserve 17%?  For what, an H1B-stuffed kludge of a platform that delivers a trickle of sales at best?  When they tried (and, fortunately, failed) to steal $120 from me last March, it would've wiped out almost every cent that I had made up until then!  I would've closed my account shortly anyway; all that did was speed up my timetable.

I get that chains with volume receive better margins than us small operators.  But between the Hasbro-Walmart-BFF embargo and these venues squeezing even harder, it's a complete non-starter now.  Seriously, a $20 MSRP becomes $17 retail becomes $15 or less with a coupon (if your store carries products, promotion or not)...which has a 50/50 chance of becoming $9 on Amazon Prime before my day-one preorders are delivered.

Yikes.  I already stopped all acquisitions but the rare special order early last year.  I thought I could ride the remainder out on eBay as live event organizer greed continued to spiral out of control.  If eBay follows suit with more fees, anything I have left at the close of the fiscal year may as well be burned.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

by: Chicago48 This user has validated their user name.

Fri Jan 19 18:08:58 2018

To be fair, these are businesses that have to please and pay their shareholders and pay all the workers and warehouses.  It's expected that everything in fees from utilities to rent to small business prices will go up.  You just have to make decisions about whether you're going to pay and increase your prices; or are you going to cut back on things.
But people can rage against the machine, but the machine needs feeding to support others.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

This user has validated their user name. by: RKTOYS

Fri Jan 19 20:47:30 2018

Except these fees are percentages.  Percentages naturally scale with inflation.  When they raise the percentage, they don't just take more in literal terms, they take a bigger proportion and you, by mathematical necessity, a smaller.  When the government talks about raising sales or income taxes, people understand this.  Yet when a business does it, those same people go stupid and confuse it with inflation.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

This user has validated their user name. by: Marie

Sat Jan 20 16:45:32 2018

For me, Amazon fees have always exceeded the Ebay fees by a good chunk.  Which is why what I sell on Amazon is higher priced than it is on Ebay.

Also when there is a return, Amazon charges an admin fee which is equivalent to the 30 cent fee PP keeps, but unlike Ebay Amazon only refunds a portion of the other fees.  

And while Amazon increases their fees in this category in others, it has been YEARS since they have allowed an increase for shipping on listings they control the shipping values that can be charged.  As we know, USPS raises rates most years.  Amazon allows $3.99 -
$4.99 to be charged for many of the items I sell.  I don't even remember when or even if Amazon has ever allowed an on shipping to be charged to the customers.  But like Ebay, they keep charging their FVF on the shipping.

Perminate Link for Amazon Raises Seller Fees in Fashion   Amazon Raises Seller Fees in Fashion

This user has validated their user name. by: Ming the Merciless

Sat Jan 20 21:55:56 2018

FBA is an artificial and unnecessary construct created for the sole purpose of creating more profit for Amazon.

I lose no sleep over denying them their exorbitant FBA cut so they can pay their severely mistreated employees who have terrible working conditions, draconian quotas, and low wages without benefits.

Amazon has become an anti competitive ecommerce giant that needs to be broken up by USDOJ.

Just like ebafia, Amazon has no interest whatsoever in the financial health of its third party sellers other than the profit they can strangle out of third party sellers.



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