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Referral Fees Series. Part 2
Hello Sellers,
Understanding how Amazon calculates referral fees is important for sellers to manage their costs effectively.
As @Julia_Amazon mentioned on Referral Fees Series. Part 1, the percentage of the referral fee depends on the category of the product being sold and there may be minimum referral fees for certain categories to ensure sellers pay a fair amount.
The formula for calculating the referral fee is quite simple:
Referral Fee = Total Price * Referral Fee Percentage
For example:
Let's assume that we sell a doll for £28.80. As per Fee category guidelines for your products, a doll is categorized as a Toys and Games.
As per the Referral fee category guidelines, Toys and Games referral fee would be 15.3%
Now, we can calculate the referral fee Referral Fee = £28.80 × 0.153 = £4.40
So, in this case, the referral fee for selling the doll on Amazon would be £4.40.
If you believe your item belongs to a different fee category, you can appeal it with Amazon. To find out more, please refer to the Referral fees reimbursement policy.
Have a great day ahead,
Ezra!
6 replies
Seller_IC5dxZRZpcM4T
You should ensure your readers know that the 15.3% referral fees excludes VAT in the UK and has the reverse charge mechanism applied to it.
Seller_aqTCnx7SDvKOO
We have been overcharged referral fees on over 500 orders of a product, costing us well over £1000 now and Seller Support keep giving me the run around with it and I am sick and tired of it. See case ID: 9827857042
I sent them the affected orders in the Referral Fee Refund spreadsheet that they sent over, which dates back to February, showing we had 577 orders on which we were charged the wrong referral fees. For some reason in February, the referral fee on our product changed from 10.2% to 15.3%, even though we had been paying 10.2% for years and it is 100% in the correct category.
After a lot of back and forth, somebody said they would investigate and eventually came back to say that they had approved the refunds.
We were only given a refund on 15 orders….!
Plus, we are still being charged 15.3% - they haven’t changed it to the correct referral fee so there are even more orders that need refunding as every day passes.
I told them this and they came back again to say they have approved the request… this time NOTHING HAPPENED!
There is a product being sold by Amazon that is essentially the same as ours, just a different brand, and I have confirmed it with Seller Support (case ID 9843375932) that the correct referral for that product is 10.2%, because it is (correctly) in the Beer, Wine and Spirits category, which is where ours should be. Instead, ours is in the Grocery fee category, hence the 15.3% referral fee.
As many on here know, talking to Seller Support seems to becoming more and more frustrating by the week and with some issues you end up just giving up because they are unable to comprehend any issue that doesn’t fit their scripts.
But I am not giving up with this, even if that means taking it outside of Amazon, because you have now cost us the equivalent of an employee’s wage for 3 weeks (and counting) and that is simply a cost that small businesses can’t just suck up because your Seller Support fall woefully short of being actual ‘support’.
@Ezra_Amazon - Please can you help with this as this is my last resort before having to do something else to get the money we are owed.
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