FBA FEES ARE NOW 4 X HIGHER
A typical case of product would cost us $12.00 for 80pc. Today we were about to ship the same case as we did last week. The total cost with Amazon's new shipping is $46.00 including their "Placement Fee". This is an increase of $36.00. They said that the shipping would go down if we ship to multiple locations per their destination requirements. However, this option seems randomly generated and the placement fees are still sometimes there even if I"m sending in 5 or more boxes. Even if the placement fees are negated, the shipping fees are almost double. So much for Amazon wanting more FBA business...I think this will definitely drive more sellers to revert back to the old days of FBM. This is a giant step backwards.
Based on the increase, we are now forced to raise our prices. This is just opening the door for Walmart to take a bigger chuck out of Amazon's market share.
FBA FEES ARE NOW 4 X HIGHER
A typical case of product would cost us $12.00 for 80pc. Today we were about to ship the same case as we did last week. The total cost with Amazon's new shipping is $46.00 including their "Placement Fee". This is an increase of $36.00. They said that the shipping would go down if we ship to multiple locations per their destination requirements. However, this option seems randomly generated and the placement fees are still sometimes there even if I"m sending in 5 or more boxes. Even if the placement fees are negated, the shipping fees are almost double. So much for Amazon wanting more FBA business...I think this will definitely drive more sellers to revert back to the old days of FBM. This is a giant step backwards.
Based on the increase, we are now forced to raise our prices. This is just opening the door for Walmart to take a bigger chuck out of Amazon's market share.
0 replies
Seller_DjZ82kNv2Rt1b
Totally agree, for volume sellers of low-priced light weight items, the new system will affect us really badly (our sending cost increased 4X). Due to competition, our margins will get squeezed as we can't raise our prices.
I don't believe, the people who made this decision, know what they are doing.
Seller_z8B6sbyn6Gc53
The placement fee is crazy, I cant believe it honestly its too much.
Seller_0EBsyUMvixIPH
beginning of the end. Start thinking about moiving off amazon and do FBM, now.
Seller_SJRMV3s4mNrFA
In related news, Jeff Bezos has regained the Richest Man in the World title
Seller_j9GWwlViBpyBB
[Moderator Edit: removed solicitations]
Seller_A6A6GUNuplT1Z
There will be no room for profit for any small items sold on Amazon within 5 years... unless it is $20 or more. :-(
Seller_4lw6ILteSlST6
Or, Amazon realized these low cost items weren't profitable for them to deal with, so they found a way to make them profitable. Which means, everyone has to raise their prices. And...that may work if everyone is in the same boat. Just trying to be optimistic here.
Jameson_Amazon
Hi @Seller_JyI1LCCUOEy4f,
I appreciate you and the other sellers within this thread sharing your thoughts regarding these fees.
Please note that to enable more efficient use of our network, we charge separately for inbound and outbound activities. As a result, we will lower our outbound fees while creating new inbound fees that you can reduce or avoid entirely based on how you inbound products to us.
Effective April 15, 2024, we will decrease FBA fulfillment fees for standard-size products by $0.20 per unit and for Large Bulky-size products by $0.61 per unit on average. April 15 is the same date that the first inbound placement services fees will begin to be charged.
If you haven't done so already, I would recommend reading through the following resources for more information on this update:
- "Update to US referral and Fulfillment by Amazon fees" news post
- "2024 FBA inbound placement service fee" help page
If you have any additional questions, please don't hesitate reaching out.
Thanks so much,
Jameson
Seller_5xUDjRTyrAgVB
It appears the small business model is being completely squeezed out. This will solidify that happening
