amazon new FBA costs increased, compare to small and light program
does any one feel the same , after FBA small and light program ended, all item switch to new small item FBA program. my previous price is 11.99, fba costs 4.50 dollars (net 7.49) , and now it is 5.22 (net 6.77) , 9.6% cost increased . if i set my sale price to 9.99, it will be in the new low cost FBA program, it charge me 4.62 minimum (net 5.37). it makes me lost a lot of profit compare to old small and light program.
amazon new FBA costs increased, compare to small and light program
does any one feel the same , after FBA small and light program ended, all item switch to new small item FBA program. my previous price is 11.99, fba costs 4.50 dollars (net 7.49) , and now it is 5.22 (net 6.77) , 9.6% cost increased . if i set my sale price to 9.99, it will be in the new low cost FBA program, it charge me 4.62 minimum (net 5.37). it makes me lost a lot of profit compare to old small and light program.
14 replies
Seller_lL56sfALOfvzT
I feel ya brother. So do a lot of others I'm sure. Always gotta stay agile.
Seller_gh3LllkoBe7eQ
Its across the board by amazon. Look at the net profits they generate and still feel the need to bend us over backwards. I first felt the heat in March of this year. PPC for all the same keywords literally generated 50% less impressions for the month of april with no new players in the category. I raised by PPC about 30% and all the sudden my impressions went to about where they were for the perviously 12months as I keep pretty accurate track.
Seriously who actually polices what they "alledge" a click costs. PPC is inflation and I have yet to see it increase for my particular category such a large amount between march to april of this year.
No wonder they are reporting BILLIONS in profits at all of our expenses.
As others have said. "ITS A RACE TO THE BOTTOM."
Seller_lDD0jLSfQL7QI
Best thing to do is increase your original price $1 from $11.99 to $12.99. This is the only way to teach Amazon that they can't screw sellers this way and set unrealistic and illogical pricing tiers in a time when costs have gone up everywhere.
Seller_1YkWo4vbgfSN0
My costs on the small and light have gone up by about 30-40%. We were paying on average $2.66 on this program and new costs are about $3.66. So about a 37% increase. We used to have about 70% of our SKUs in the small and light program.
The new low price program doesnt make sense unless Amazon has measured your product correctly and put it in the small standard category. All/ Most of our products should be in that category but we all know that Amazon intentionally measures items bigger and places in the larger catergories so that they can more. We have had to scramble and release new SKU's with more units in the package (4pack vs 2 pack) becuase shipping cost is the same when you are above $10. We now have about 30% of our SKUs in small and light and plan to reduce that to about 5-10% once we deplete stocks. We are also converting more items to FBM.
I really seems like Amazon has decided to forgo price competitiveness in search of the short term profits. They will surely reap short term profits but longer term sellers will adjust. Not sure if Amazon has decided to surrender the low price market to temu and shein.
Veronica_Amazon
Hello @Seller_BNgu0PuNWwhDC- The Small and Light program update is intended overall to still offer a savings on fees while offering a fast shipping. I appreciate you offering your experience on this program change and its impact on your profit and its helpful to see this post generating opinions and suggestions from others that participated in the program.
Kindest regards,
Veronica_Amazon
