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Amazon Drops Seller Fees

The e-commerce company will now take a five percent cut on apparel items under $15 as opposed to 17 percent.

Amazon has announced a reduction in referral fees for apparel products priced below $20. For items under $15, the referral fees will drop from 17 percent to five percent. For products priced between $15 and $20, the referral fees will drop from 17 percent to 10 percent. These changes will apply beginning January 15, 2024.

“We are excited to provide sellers with more transparency and more control over their fulfillment costs,” Dharmesh Mehta, VP, Worldwide Selling Partner Services, says on the company’s website. “On average, this year’s fee changes are significantly less than those announced by other major fulfillment services, and many sellers will see a decrease in the average fees paid to Amazon per unit sold … Amazon’s fulfillment fees will continue to remain an average of 70 percent less expensive than two-day shipping methods offered by other major third-party logistics providers.”

Other updates include:

  • Inbound placement service fee
  • Decrease in FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit.
  • Fulfillment fee discount ranging from $0.04 to $1.32, depending on item size and weight, for eligible products in the Ships in Product Packaging (SIPP) program. 
  • Low-inventory-level fee
  • Reduction in non-peak monthly storage fees for standard-size products by an average of $0.09 per cubic foot, from an average of $0.87 per cubic foot to $0.78 per cubic foot, from January through September
  • New, lower pricing structure for Amazon Vine
  • Expansion of benefits as part of the US FBA New Selection program
  • Updated rates and new benefits for Supply Chain by Amazon

Read more here.

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