Amazon Creating more Hidden Fees?
Does anyone else notice the rise in "hidden fees" lately. Amazon's fee structure used to be pretty straightforward - you had a referral fee and fulfillment fees. Recently Amazon has added significant fees but in a subtle, hidden way.
1. The increased need to spend on Ads
2. Low-Inventory Fees
3. Inbound Placement Fees
These fees are covert, and they're difficult to track. The low-inventory fees are very expensive and sellers, especially inexperienced ones, might not even realize they exist or that their inventory level for certain ASINs falls into this "low" category. The inbound placement fees, which are brand new, are extremely expensive and increase shipping to FBA costs by 3-7x.
I think it's Amazon's goal to slowly, secretly, take every last dime from all of its sellers. I think they especially prey on new sellers. A new seller might come with their savings, maybe even borrow some money to try selling on Amazon. They might not be organized or sophisticated enough to realize they're losing money. I think Amazon wants to take all their money - their savings, the money they borrowed, and put them out of business. The more hidden the fees are, the longer sellers will keep losing money to Amazon without realizing it. If Amazon can take all the money from a seller and that seller eventually leaves, there will always be new young sellers willing to try. And so the income for Amazon continues.
3 replies
Dominic_Amazon
Hi @Seller_2nHKMJRUHkO90,
Dominic from Amazon here, want to pushback on the fact that these are hidden. We published a news article about this here: Update to US referral and Fulfillment by Amazon fees
I do want to note:
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. These fees will apply starting April 15, 2024, the same date that the first inbound placement fees will begin to be charged. Products priced below $10 will continue to have an additional $0.77 discount on per-unit fees. Go to the FBA fulfillment fee rates page for more details.
Best,
Dominic