Amazon Unexpectedly Hikes USPS Shipping Rates on Wednesday

by: Rexford

The question is, will Amazon raise what buyers pay for shipping? If not, sellers will either have to raise their item prices even higher or have their already slim margins cut into again.

by: Randy

Another kick to the groin for the small seller!

by: RKTOYS

The poor shipping vouchers are half the reason I don't sell, or buy, on Amazon anymore.  I don't know how anybody makes a buck getting jacked for 20% and ripped off on shipping too.

by: JQ

Amazon fees are crazy high compared to other selling sites. I just add anywhere from $1.25 to $3.00 to my item listings on Amazon compared to the prices I charge for the exact same items on other sites. That more or less makes the revenue neutral from site to site. Despite the much higher prices I make sales on Amazon most days.

I write it off as just the dynamic of shoppers valuing their time rather than saving a few bucks and so just doing all their shopping on one site they know and trust.

by: thebobman

Really depends on what you sell for the rates. Cheap phone accessories you really get hosed, the minimum fee of $1.50 or so in some categories eliminates most profits.

I just sold a computer card for a phone server.
It came to $250, and the total Amazon fee was $20.10 or 8%.

by: RKTOYS

If you sell a $20 item in toys, the fee is $0.99 fixed plus $3.00 variable + $0.45 shipping or just over 22%.  That's before they make you ship to the other side of the country on that $4.54 they've graciously passed along.  Every time you raise prices to compensate, they rake in higher fees too.  In market where people will crawl over broken glass soaked with iodine to pay $16 instead of $17, it's pointless.

by: JQ

My average fee percentage on Amazon is 31%. It is 21% on Ebay/Paypal. 12% on Bonanza. Still too new to Etsy to get a number I think will be stable, but I expect it will be around 20% as well.

Amazon fees are completely out of step with other sites. It does not seem to be hurting them.

by: epuise

The fees would not be a problem if these sites/venues did not throw the word "FREE" around on every page. Online buyers are getting a valuable service: easy at wherever shopping: no parking in lots, walking, standing in lines. It is high time that consumers are told a CONVENIENCE or SERVICE does cost money.

by: Rexford

epuise, I am also sick of that term "free shipping".  It is only free to Amazon, eBay and all of the other sites that third party sellers sell on. I assure you if it came out of their pockets not only would it not be free it would be double or triple what their sellers charge.

by: Shop and Ship

"Free" won't disappear as long as consumers flock to ads with the term "free" in them. I buy lots of things for under $1 and add them to my listings as a "Free Bonus" and have no clue as to why anyone in their right mind would want that stuff free or not. I sold a pallet of K-Cup rotating chromed carousels in record time by adding a "free" brown plastic refillable K-Cup from Dollar Tree. Go figure.

by: Marie

It sounds like Amazon breached the contract they had with USPS when they advertised the rates they negotiated back in January and USPS slapped them down for it.  It may just be all Amazons fault for losing those rates.  I don't know this for sure, it just seems that way to me.

As for being able to get the rates raised we charge customers for shipping on Amazon.  I did ask that question back in January in light of the huge increases.  I was told that Amazon had no plans of allowing sellers to increase rates.  With that information, I took international shipping off all my listings.  I just couldn't afford the risk.

by: Rexford

Marie says "I was told that Amazon had no plans of allowing sellers to increase rates."

Like I said, it doesn't come out of their pocket, so they could care less.  You have to love a "business partner" who has little empathy for your expenses.

by: Marie

@rex

Not exactly as Amazon charges a fee on S&H just as Ebay does.  People have passionately argued here that Ebay doesn't do as much as they could to lower USPS rates because they charge this FVF.  So for those that feel that way about Ebay, they should as well about Amazon.  I'm not saying you feel this way.  You may or may not.  I don't remember from the other threads.  I'm just sayin.....

by: negativenate

LOL @ RKTOYS

by: ebay refugee camp

The priority mail rates were lower than others, how will this change on what Amazon has set up for sellers?
Why can't this all be simplified? Whay can't it all be the same, venue's negotiating their own prices?
This is what corruption is all aboout , somebody getting their pocket's lined.  

by: retrolink

funny thing about Amazon. I have been selling there and on ebay since about 1998. First starting on ebay. loved it then.listed 10 items and sold 8.. Then slowly getting big with Amazon as ebay went down the drain until a few years ago when Amazon started all the convoluted stuff against sellers.Constant threats of 'having selling privileges cancelled' from bots.. restrictions, punitive behavior against your items for sale, hiring idiots that merge paperback and hardback versions of books into one and call vhs tapes 'discs' ...all the dvd restrictions and the shipping game where they keep making the sellers take the hits on expense. in addition , Amazon keeps marginalizing third party smaller sellers on their grid. Some of the stuff is so convoluted where they mix cds and vinyl records that it's just unbelievable.   What is also funny now is when I go to buy what Amazon calls a 'restricted' dvd where I, a seller with 100% feedback for many years are not allowed to sell it.. I get a thrill now when i take that same dvd and sell it on ebay right away. So after doing this for about 3 months I realize ebay has improved and my sell through rates are much higher now. So while Amazon plays there stupid games and keeps sending me emails to lower my prices while they put my profits and sales into the gutter.. Amazon has taught me to go back to ebay, who 6 months ago I thought was the devil itself. But now I see as a refreshing situation as they are not also  my worst competitor, who tries to cut their prices against my stuff every day. things change .it's very interesting.