Category: Amazon

Amazon Announces Reduced Seller Fees for Low-Cost Clothing

Amazon has announced a reduction in seller fees, but exclusively for clothing items priced under $20. Starting in January, apparel priced under $15 will see a dramatic decrease in seller fees from 17% to 5%. For clothing items between $15 and $20, the fee is adjusted to 10%. This change marks a significant departure from Amazon’s previous increase in seller fees for clothing, which went up to 17% from 15% back in April 2018. Business analysts speculate that this fee reduction is Amazon’s strategy to better compete with low-cost fashion retailers like Shein.

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2024 Amazon US FBA Fee Adjustments

In 2024, Amazon will adjust its seller fees, including an average increase of $0.15 per unit sold, new inbound fees averaging $0.27-$1.58 per unit, and reduced FBA fulfillment fees by $0.20-$0.61 per unit. Additionally, referral fees for certain apparel items will be reduced, and monthly storage fees will decrease by $0.09 per cubic foot.

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Amazon Updates Referral Fee Calculation for Cross-Border Sales

Starting February 1, 2024, Amazon will introduce changes to the referral fee calculation for Marketplace Facilitator transactions. Previously, Amazon calculated the final price by applying the VAT rate of the destination country, resulting in varying referral fee amounts for cross-border shipments. With the new update, the referral fee amount will be consistent, regardless of the destination country. For instance, a listing on Amazon.de with a price of €119 will attract a referral fee of €11.90, irrespective of whether the product is shipped to Germany, Portugal, or Luxembourg, despite the different VAT rates in these countries.

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