Amazon sellers "fried hair", Amazon FBA distribution fee price increases take effect on January 1
Release time:
2021-11
Today, Amazon's seller circle is "fried"!
Amazon Global Opens announced the 2022 Amazon U.S. Station Amazon Logistics Fee and Sales Commission Change Notice, stating that it will increase the cost of various services to reflect rising operating costs.
Amazon USA station announcement shows:From January 18, 2022, Amazon will adjust Amazon logistics costs.In order to reduce Amazon's higher permanent operating costs in the future.
There is a lot of content, Snow gives you a few key points reflected in the announcement:
Logistics costs
# Delivery rates will increase by 5.2 on average!
# Removal and disposal costs have gone up!
Amazon will increase removal and disposal fees based on changing costs. Clearance fees will remain the same and will be lower than removal or disposal service fees.
# Off-season storage fees have gone up!
Amazon will increase the off-season monthly storage fee (January-September) for standard-size goods and large-size goods, and the high-season storage fee (October-December) will remain unchanged.
Amazon will introduce a tiered rate structure for long-term storage fees. The fee is a surcharge on top of the monthly storage fee and includes a storage fee for inventory stored for 271-365 days. This change will take effect on May 15, 2022.
# FBA pre-processing service costs have gone up!
Amazon will increase the fee for Amazon Logistics (FBA) pre-processing services, and for the Amazon Logistics Light Goods Program, the maximum weight requirement for goods will be increased from 12 ounces to 3 pounds.
# For all large standard size products (except clothing), Amazon will use the larger value of product weight or volume weight to determine its delivery weight.
# Two new projects are launched: FBA grading and resale program, which allows sellers to classify some products as second-hand products and recover residual value from returns; For brand registered sellers, they may receive rebates from selling FBA products. In addition, Amazon will provide sellers with the opportunity to liquidate some of their inventory for free in "specified time periods and eligible quantitative inventory.
Sales Commission
# For lawn mowers and snowplows with a total sales price of more than $500, Amazon will reduce the sales commission from 15% to 8%.
# Sales commissions for all other classified items will remain unchanged.
As soon as the announcement came out, the seller's circle exploded.
Although mixed, Amazon's official survey poll showed that as of 10:30 p.m., 93% of people said they were not satisfied, and the increase was too large.
Some people in the seller's community calculated and found that after that, the large standard parts would be counted as volume and weight, implying another wave of big rises.
The seller gave an extreme example: a product weighs 0.73 pounds and weighs 1.05 pounds in volume. The original standard is charged according to the actual weight within 0.75 pounds, so the original FBA cost is 3.64. The current standard is calculated according to the larger between the actual weight and the volume weight, that is, 1.05 pounds, so the updated cost is 5.14.5.14/3.64=1.41. The cost has increased by 41%.
In other words, the logistics cost of large goods is calculated according to the weight, and the profit will be greatly reduced.
Other sellers have also expressed their views in the comments area:
Seller A: "The impact on the net interest rate is estimated to be between-2% and-5% for different unit prices without price increases"
Seller B: "Yes, many people have not noticed the demarcation point of 0.75"
Seller C: "It's far more than that. FBA has too much room for change. The small one is fine, but the big one is very uncomfortable"
Seller D: "It is estimated that the impact of some heavy volume will be relatively large. However, the net profit is reduced by 2 ~ 5%, which is very outrageous. After all, the delivery fee is real and no one can escape. Hey, come on, everyone ~"
Amazon pointed out in the report that in order to balance the contradiction between peak shopping demand in peak season and supply chain crisis and labor shortage, Amazon will have to spend billions of transportation costs in the future, adding more than 350 storage centers, sorting centers, regional aviation hubs and distribution stations in the United States, employing 150000 workers and increasing freight vehicles to alleviate the crisis.
It can be seen that the huge distribution costs make Amazon's Q4 performance face multiple pressures. The wool is on the sheep, and Amazon's adjustment of FBA distribution fees and sales commissions is ultimately extending the "talons" to the seller.
This year's cross-border e-commerce road is tortuous, and the whole industry chain is struggling. Amazon sellers are limited by the rules of the platform and are tightening their belts. Many sellers are also considering raising the price of their products to cope with the rising distribution costs. In particular, the distribution fee increased the most for the sold products, recalculated by volume.
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