Why has Amazon charged customer postage when we had to pay it?


#1

Hi,

We have just had to pay postage to send an order from the UK mainland to the Republic of Ireland. Amazon has obviously had to charge the customer for postage, as there would be no other way for the customer pay this amount.

So shouldn’t Amazon now pay the postage to us? As things stand, the postage has in effect been paid twice - once by us to the courier and once by the customer to Amazon.

How do we recover this amount? And do we need to change something in our postage settings to stop this happening?

Any advice would be gratefully received.


#2

Not sure I understand fully but Amazon pay you the money from the sale, whenever you withdraw your money from Amazon.


#3

Thanks for the reply. I’ll try to explain.

If the product cost £15 and the postage the customer sees is £10 then they are charged £25 by Amazon. When we look at our account on Amazon, we see just the £15 (minus fees). There is no reference to the postage anywhere. And we obviously had to pay roughly £10 to send the item out of our own pockets.

The postage of £10 appears to be money that Amazon has collected and simply kept.

  • Patrick

#4

It’s not FBA right?..


#5

Not FBA. We fulfilled the order and posted it ourselves.


#6

It sounds like Amazon have collected the facilitator tax to pay on your behalf and you didn’t send the order DDP.
This will help explain the changes since 1st July 2021.

https://sellercentral-europe.amazon.com/gc/vat-education/eu-dr?ref=sc_eu_VATedu_EUDR_SeCeNews


#7

Are you able/willing to post a screen shot of the order, block any sensitive info etc.


#8

I am willing to post it - if I could find it… I feel like an idiot but could you tell me where to find the actual order?


#9

Orders - manage orders - shipped tab


#10

I will read through that. Thank you.

Actually, I don’t know how we even got an order from ROI. It is not listed as one of our marketplaces. We are new and would prefer to take the advice of someone earlier in this thread and confine our sales to the UK until we get the hang of this.

What I would like to do is block sales to ROI.


#11

Thanks. Here it is.


#12

It shows the shipping on there

To remove non UK sales go to your shipping templates and untick international shipping


#13

I have unticked international shipping on the template. Hadn’t seen that.

Regarding the calculation:

The customer was charged £40-28.
The price of the items was £32-00.
The Amazon fees were £5-92.
We are getting £26-02.

If I subtract the fees from the cost of the items, 32-00 - 5-92 = 26-08, which is roughly what we are getting. So Amazon has kept the postage.

We had to pay postage of about £10 to send the item, so we only actually keep about £16. The £8-28 shipping fee is now in Amazon’s bank account.

I guess, now I have fixed the selling template to stop future sales to ROI, we will just have to write this one off. I’m just trying to get my head around how it all works.

  • Patrick

#14

are you getting these calculations from the email? As I cant work out why you’re not getting the shipping.

How do you know you are getting 26.02?


#15

It’s listed as £26-84 in the Payments Dashboard in the currently open settlement period. As I say, we have just begun and it is actually the only sale listed in there up to now.


#16

You’re reading it wrong, you’tr getting what it shows on the order screen.


#17

That’s good to know. I’ll wait to see what arrives in my bank account and repost here if it still seems wrong.

Thank you all for the help.


#18

It looks like Amazon have kept all the VAT as its an IOSS order. So total value is £40 , minus VAT minus fees equals your income from Amazon.
Just to clarify, you have had the postage - its just a similar about to the VAT that Amazon have paid on your behalf as they legally have to when an order goes to EU.


#19

I agree - its the VAT.

Even if you don’t breach VAT threshold, all shipments to EU now have VAT automatically taken.


#20

from memory I think postage to ROI is more than usual UK. Amazon charged my customer the additional, and I refunded the customer the difference between the charge & actual postage cost - didn’t have to do that but I felt it was a nicer way to do business