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The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.

Fri Dec 20 2019 15:10:21

Amazon Announces 2020 Fee Increases

By: Ina Steiner

Amazon is increasing the cost of using its FBA fulfillment service by an average of 3%. Current FBA fees are detailed on this page on Seller Central.

In addition, Amazon is reducing referral fees for higher priced goods in several categories. Current referral fees are detailed on this page on Seller Central.

However, all activewear clothing will be charged the Clothing category referral fee percentage of 17% instead of the 15% fee for the Sports category. It will also discontinue the Amazon Business tiered fee structure for total product values above $1,000.

Changes are going into effect on February 18, 2020, be sure to read Amazon's full announcement for details and any exceptions.

In making its case for the fee changes, Amazon points out its investments in seller tools and services; its expanded free 1-day delivery capability (applicable to FBA); and increased shipping costs.

An Amazon spokesperson provided EcommerceBytes with the following statement:

"In 2019, Amazon invested more than $15 billion in infrastructure, tools, services programs and people to help sellers grow their brands and businesses, and billions more to expand FREE One-Day Delivery to millions of products offered by these sellers. Selling partners are incredibly important to Amazon and our customers and we are investing in our fulfilment network because we know that when sellers offer faster shipping, they increase sales. In 2020, we are making only moderate increases, about 3%, in fulfillment fees, so sellers can continue to invest in developing great products for customers. This increase is well below the industry average in the delivery and logistics industry. We are committed to helping sellers grow their businesses and remain the most competitively priced option for entrepreneurs to reach customers with fast shipping."

Let us know how these fees will impact you.

Comments (3) | Permalink

Readers Comments

Amazon Announces 2020 Fee Increases

by: NoMoreEbay

Fri Dec 20 17:20:57 2019

"In 2020, we are making only moderate increases, about 3%, in fulfillment fees, so sellers can continue to invest in developing great products for customers."

Sounds like this came from an ebay gibberish spokesperson. In other words

"We are only going to give you a moderate wound and shoot you in one leg so you can continue to invest your time in running marathons."

Amazon Announces 2020 Fee Increases

by: Whatever

Sat Dec 21 15:28:58 2019

Come on now - you knew there had to be a way for Jeff to recoup some of the $38 BILLION he had to fork over in the divorce - cheating on your wife gets very costly.

Amazon Announces 2020 Fee Increases

by: Chicago48

Mon Dec 23 06:17:31 2019

I see more and more small sellers bypassing FBA warehouses and leasing storage space. I see more and more sellers leaving FBA warehousing, and the Chinese making up the space.

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