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Disguised Fee Increase - Digital Services Fee
Not sure if anyone else has noticed. The Reduction of the standard referral fee from 15.3% to 15% from beginning of Oct 24 was welcome, however this has been replaced with the digital services fee of 2% (for UK) on the fees charged to sellers. The net effect of this in one example I looked into this morning is that a reduction of £0.04 on referral fee but increase of £0.14 for the Digital services fee.
Make sure you adjust your prices accordingly because many products are low margins as it is. This increase in fees is disguised as a separation of fees but is actually an increase in the fee charged.
18 replies
Seller_hOZNPw7G8FIjl
My fees have not altered at all - but then I am on the professional selling plan so only pay the monthly fee and the category fee, not a referral fee.
Seller_469SU3Aj73sZL
Digital Service fee is a Statatoury Tax introduced by the new government on 1st October aimed at Amazon EBay Etsy Onbuy and others So they had to show it standalone
Seller_hOZNPw7G8FIjl
It is 15% plus VAT not incl VAT. Having checked, the figures work out the same.
Example old fees
Selling price £10
Old referral fee 15.3% = £1.53
VAT 20% on £1.53 = £0.31
Total fee (£1.53+ £0.31) = £1.84
Example new DST fee
Selling price £10
New referral fee 15% = £1.50
DST 2% on £1.50 = £0.03
VAT 20% on £1.53 = £0.31
Total fee (£1.50 + £0.03 + £0.31) = £1.84
Seller_QCb0REGam7OHg
Don't forget the VAT on the DS Fee !
I predict this will be very to claim back as Amazon wont issue correct / any invoice
Seller_76AUwmqvSyRIM
No, you are still paying the tax they should be paying but it is now shown separately.
Seller_OM4BK6pjqIuuR
I just got charged the fee, I am UK based and only sell in UK. According to Amazon .. " the fee will not apply to domestic sales if the business is established in the same country as the store where it sells"
Anyone else been wrongly charged?
Seller_hOZNPw7G8FIjl
I don't think that is correct.
See https://sellercentral.amazon.co.uk/help/hub/reference/GMVQXVHHG8Q8KN7L where it says:
If you’re established in:
The UK: A digital services fee of 2% will apply on Selling on Amazon and Fulfilment by Amazon fees for sales in the following stores: UK, France, Italy, Spain, Canada, United States, Germany, Belgium, Sweden, Netherlands, Poland and Mexico.
So if you are based in the UK and sell in the UK the DST applies
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