[AMZ] Update to US referral and Fulfillment by Amazon fees

[Tried_Tested]

Shein is mid asf

[Uncle_Leroy]

@ASV_Vites

We will introduce an inbound placement service fee

Money Grab

@ASV_Vites

On average, we will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit.

Bwahahahahaha

@ASV_Vites

offer a fulfillment fee discount ranging from $0.04 to $1.32, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program.

Yeah, sure… (eyes rolling)

@ASV_Vites

We will introduce a low-inventory-level fee for standard-sized products.

Really? A company maintaining high IPI sell-through scores are going to get punished??? Just wow. How do I mark that my entire inventory is non-replenishable just to get out of the fee?

@ASV_Vites

To help enable you to carry sufficient levels of inventory, we will reduce the non-peak monthly storage fees for standard-size products by an average of $0.09 per cubic foot,

Nice. Because someone’s gotta put something in all those crazy extra fulfillment centers you built.

@ASV_Vites

We introduced a new, lower pricing structure for Amazon Vine.

Meh. “more details to come”… meaning what rolls out in the final rules may make this worthless (as is typical Amazon fashion).

@ASV_Vites

We will expand benefits as part of the US FBA New Selection program

Another meh.

@ASV_Vites

We will introduce updated rates and new benefits for Supply Chain by Amazon, an automated set of supply chain services that provides an end-to-end solution to quickly and reliably move your products from manufacturers to customers around the world

If it’s anything like Amazon’s AI for seller support or the bots… it will be a doozy.

@ASV_Vites

We are also making annual updates to Storage Utilization Surcharge, Removal, Disposal, Aged Inventory, Prep, and Inbound Defect fees

Current one works fine. Just gotta tinker with one of the few things that ain’t broke.

@ASV_Vites

Finally, we will expand the returns processing fee to apply to high return-rate products in all categories, excluding apparel and shoes.

Another money grab.

@ASV_Vites

This fee will address the operational costs of returns and reduce waste.

How will the higher returns processing fee across more categories reduce waste? If something is defective or damaged, it’s going to get tossed regardless of who does it.

@ASV_Vites

We wish you a healthy and prosperous holiday season,

Same to you. Let the reader determine whether this is a legitimate heart-felt response, sarcasm, or somewhere on the continuum.

@ASV_Vites

we thank you for your continued partnership.

[GGX]

@Uncle_Leroy

Same to you. Let the reader determine whether this is a legitimate heart-felt response, sarcasm, or somewhere on the continuum.

I don’t know why you’d think this would be sarcastic. If you go bankrupt or get hit by a bus, you can’t spend the next year slaving away to make Amazon more money.

[Uncle_Leroy]

@ASV_Vites

Now they want a more refined group of sellers, that know what they are doing and are serious about success.

In my humble opinion (which some will know from my pre-ban days in OSFE) that part of the solution to this is 1) eliminate the individual plan, and 2) raise monthly fee to $99 per month instead of $39.

Been saying it for years.

[Uncle_Leroy]

@GGX

I don’t know why you’d think this would be sarcastic.

I was actually speaking of my response, not Amazon’s pleasantries. But I can see where you get that based on the wording of my response.

[GGX]

I actually think there should be a several thousand dollar deposit that needs to be made prior to someone being able to sell on Amazon. The deposit would be refundable upon closing the account or after making $1 million in sales, assuming it hasn’t been suspended for being a bad actor. Part of the BSA would say that if they’re suspended for ANY policy violation, whether it’s drop shipping or trademark infringement, the deposit will be forfeited.

It would greatly cut down on scam sellers, especially foreign ones.

[ASV_Vites]

Not sure what to think about your deposit premise, considering Amazon holds back tens of thousands of dollars of our hard earned cash at any given time, so screw that…

A better idea is a verifiable EIN with insurance up front. Keep everything the same and this will help for sure. The Walmart marketplace has this in place on the EIN and they do allow overseas sellers (China as well), and there seems to be a lot less nonsense over there. Yes, it’s 10X smaller but there rules aren’t as strict and yet there still doesn’t seem to be a lot of black hat activity. Selling in one of the shadiest categories there are, I would know.

But on this:

@GGX

It would greatly cut down on scam sellers, especially foreign ones.

That won’t do anything. These are organized groups that have plenty of pooled capital. That’s how it works over there. Lots of disposable accounts set up, merch moved to whichever one doesn’t happen to be suspended at the time.

[GGX]

Yes, they hold back 10s of thousands… if you’re actually selling. I routinely see brand new accounts pop up and get taken down. They didn’t have to put ANY skin in the game to open an account (other than the $40 fee). If scammers lost a few thousand extra on a deposit it would definitely help cut down on a lot of crap.

Think about these groups that are opening hundreds or thousands of accounts. Getting 1000 accounts suspended @ a 3K deposit each, that’s a 3 million loss. That’s gotta have some impact.

Making sellers have to have a valid US Corp to do business would be nice but I don’t think that’s gonna happen given how many sellers are registered with CN addresses/business names.

[ASV_Vites]

You make some fair points here.

@GGX

I don’t think that’s gonna happen given how many sellers are registered with CN addresses/business names.

This is how Walmart makes it happen. Need to be a real incorporated business. Harder to register hundreds or thousands of individual businesses.

We love international sellers! To become one, you will need to have a US Tax ID Number (TIN) or be incorporated in: Canada, China, Germany, Hong Kong, India, Japan, Mexico, Singapore, South Korea, Taiwan, Thailand, Turkey, UK or Vietnam .

[GGX]

Is that from walmart?

It says OR, so it sounds like they also accept chinese companies w/o a US EIN

[HumbleWarrior]

Hi guys,
Amazon is going to have a handful of new fees next year See the summary below:

• Additional fee for FC transfer
• Low inventory level fee
• Increase LTSF fee
• Increase fee for products with high return rate (clothes and shoes)

Source: https://www.youtube.com/watch?v=1imEBVA5VWw

I feel like Amazon wants to make sure that sellers don’t make much more than the minimum wage. Sigh… Now I’m really rooting for Walmart and other marketplace platforms. Without competitions, Amazon can charge us whatever they want.

[ASV_Vites]

No offense, but how did you miss this thread?

[AMZ] Update to US referral and Fulfillment by Amazon fees

Well, this is certainly frightening. The fee increases aren’t unexpected but 27 cents per unit transfer cost? Oddly enough, that’s right in line with what Walmart just rolled out a couple weeks ago. It looks like there are ways to navigate this and potentially even save some $ if all the stars align but once again overly complicated to fully grasp initially and impossible to grasp until we all get there and experience it. Surprised this hasn’t been posted yet here. [Amazon Services225x38] 中…

[Lost_My_Marbles]

Here is another one on the subject …

Someone explain the Low Inventory Fee to me like I am 5

[HumbleWarrior]

@ASV_Vites

No offense, but how did you miss this thread?

Thanks for the post. I don’t that Walmart started this FC transfer fee…

[ASV_Vites]

Yup, it does exist… $7.06 to ship a box with 144 units in it. $36 in transfer fees - $.25 a unit.

Amazon copied and added their “2 Cents”. 27 cents a unit transfer fee…

[papy]

Hi all, I’m going to merge this topic with [AMZ] Update to US referral and Fulfillment by Amazon fees, just to keep everything together. Thank you for sharing this important info in SellersAskSellers @HumbleWarrior!

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ETA: Hi all, sorry for some confusing new posts, but I merged a duplicate topic here.

Carry on!

[GGX]

Isn’t this something you opted into?

They don’t allow split shipments?

[ASV_Vites]

No, this is something new for Walmart.

Yes, they do allow split shipments and they wanted 144 units (in this case), split 3 ways.

I had already given the guys direction on how to pack / sticker it up because I didn’t know they had made the change so I just said eff it and ate the $36.

Future shipments will be split by us. I really wish Walmart would onboard UPS for WFS sellers bc FedEx is a PITA for us. Walmart just did onboard UPS for seller fulfilled so there’s now renewed hope! Haha

[ASV_Vites]

It is from Walmart. International sellers have to be incorporated in their own country if they do not have a US TIN. That’s the list of countries that they now allow to participate in the marketplace. They let China play there, starting in late 2021.

[OttosMops]

Yeah. A friend of mine used to work for an authorized Nintendo distributor, and told me about a client he had lunch with who bragged that he had sold 1,000 units on FBA of one game while having lunch. My friend gave me the ASIN, and I showed him that he barely made any profit per unit… significantly less than $1. It must be nice to be a wholesaler…