It is reported that Amazon has recently launched an account status protection plan, and claims that sellers who join the plan will not be deactivated as long as they cooperate with Amazon to solve the problem .
But while sellers are still rejoicing about the benefits of this new program, Amazon's latest notice has given cross-border sellers a heavy hammer.
It is reported that in the early morning of November 18th , the Amazon US station issued a notice of changes in sales commissions and logistics fees, announcing that it will adjust the Amazon US station logistics and distribution fees, which will take effect on January 17 , 2023 .
Amazon stated in the announcement that in order to improve the efficiency of storage utilization, Amazon has decided to adjust logistics costs, further refine the charging items, and provide more storage capacity for sellers who effectively use storage space.
In addition to the sales commission remaining unchanged , the specific adjustments to other expenses are as follows:
1. Changes in logistics costs
The logistics outbound cost increased by an average of US$ 0.22 ;
Beginning February 16 , 2023 , for apparel products, Amazon will use the greater of item weight or dimensional weight to determine the shipping weight for all large standard-size items;
For apparel and footwear products, the return processing fee is reduced by an average of $ 0.20 per return ;
Logistics rate adjustment: Elimination of separate fuel and inflation surcharges (ie surcharges become permanent cost increases).
2. Change of storage fee
From April 1 , 2023 , Amazon will begin to charge sellers with a storage utilization surcharge for inventory volumes that are significantly larger than sold inventory volumes;
From April 15 , 2023 , Amazon will increase the inventory surcharge for inventory ages of 271-365 days, and charge overage inventory surcharges for inventory ages of 180-270 days;
Amazon will increase removal and disposal fees, while clearance fees will remain the same.
3. Relevant plan cost adjustments
FBA new product in-warehouse discount program : The sales rebate for eligible Amazon new products will be increased from an average of 5% to 10% . Increase the number of products eligible for benefits and extend the applicable period of certain benefits in the plan;
Amazon Small and Light : Prices will increase from “ $ 10 or less” to “ $ 12 or less” for eligible items , enabling sellers to list a larger selection for less.
Amazon said in the notice that despite the increase in logistics fees, on average, these changed fees are still lower than those announced by other logistics service providers so far.
But in any case, as soon as the price increase notice came out, it caused an uproar in the cross-border circle.
It is understood that since the beginning of this year, Amazon has raised the FBA logistics fee many times. Among them, the US station officially raised the delivery rate, inventory disposal and other fees on January 18 , and levied 5% on the original fee basis on April 28 . Fuel and inflation surcharges, and on August 17 , the "sales peak season delivery fee" was added .
AMZ123 survey data shows that in the first half of 2022 , 64.08% of sellers believe that Amazon’s FBA price increase policy has a greater impact on them and has led to a sharp increase in costs.
And this time Amazon announced that the logistics and distribution fee adjustments that will take effect on January 17 , 2023 will undoubtedly add to the already poor profits of sellers.
Many sellers are outraged by Amazon’s adjustment notice:
"After reading it, I have the following six points to say … "
"Eating meat without spitting out the bones, the delivery fee has only risen and will rise again soon."
"Storage fees have also gone up, disposal fees have gone up, Amazon goes up and up, sellers go up and down."
There are also sellers who speculate pessimistically: the long-term storage fee has been charged for more than 365 days from the previous one, and now it is 180 days. I doubt whether it will be compressed to 90 days in the future. As long as it exceeds 90 days, it is considered overage (long-term) storage. , and then charge another sum.
As early as when Andy Jesse announced the reduction of Amazon's warehouse size, some sellers inferred that if Amazon failed to eliminate excess capacity and solve the cost problem in the second half of the year, it is very likely that Amazon will choose to increase the delivery fee again. Today's situation Undoubtedly confirmed this speculation.
In 2022 , multiple unfavorable factors such as inflation and consumption downgrade will weigh heavily on the thin profits of sellers like Wuzhishan. This time the policy is updated, logistics and distribution fees, off-season storage fees, inventory removal, disposal fees, etc. Both have risen to a certain extent. Amazon’s pass-through costs have offset some of its own costs, but it has also added another burden to Amazon sellers.
As of now, it is unclear how long the inflation in the United States will last, and whether Amazon will have the next fee increase. Sellers can only ensure the maximization of profits by adjusting their operating strategies in a timely manner.
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