Great news : Amazon's storage fees and commissions will both be lowered

In the official news released by Amazon recently, two messages are definitely heavy news for most sellers:

First, Amazon will reduce the long-term storage fee of the US station from February 15, 2019;

Second, Amazon made adjustments to the sales commission and lowered the rate for the 30+ category;

Amazon's adjustments are largely based on competition with other e-commerce platforms. Of course, such adjustments also objectively implement the corporate philosophy of "providing consumers with lower-priced products," but for sellers. Said, this is definitely a more pleasant Christmas gift.

With official information, let's take a closer look at the changes in long-term storage fees and rates, and the benefits these changes can bring.

Regarding the storage fee, Amazon said in the notice that from February 15th, 2019, sellers who have stocks in the Amazon operation center can enjoy the long-term storage fee reduction or even the reduction! However, for goods that have been stored in the FBA Operations Center for 181 to 365 days, only the long-term storage fee of the previous period will be paid on January 15, 2019, and then the long-term storage fee can be waived if the library is less than one year old!

In short, the old account is settled and the new account is reduced.

Of course, Amazon is not a free warehouse after all. For more than 365 days of merchandise, Amazon still charges a certain storage fee, but the fee is reduced from the original long-term storage fee of $0.50 per item to $0.15 per item under the new regulations. (The need to pay the previous period on January 15, 2019), the extent of the reduction is still quite large.

The long-term storage fee rates after adjustment according to the new regulations are as follows:

Long-term warehousing fees have always been the pain of many FBA sellers, and they have earned a little profit. The warehousing fees have been left out, but the adjustment of the new regulations is undoubtedly a good news, but for some overseas warehouses. Said that this is really not good news.

In addition to the adjustment of storage fees, Amazon made a big move and made a large proportion of sales commissions.

Amazon has made more subdivided adjustments to sales commissions in the new rules, including Amazon’s sales of beauty makeup, health care and maternal and child products (excluding maternal and child clothing) for items with a total sales price of no more than $10. The percentage of commissions has dropped from 15% to 8%; for products with a total sales price above $10, Amazon will continue to charge 15%.

This adjustment is definitely a big plus for low-priced sellers. Even the adjustment of this rule can double the profit margin for low-price sellers. Of course, this adjustment may also lead to the addition of sellers on the eBay, AliExpress, and Wish by the “1+1” model, which may intensify the fierce competition of low-priced products on the Amazon platform.

In addition to the above categories, Amazon also reduced the percentage of sales commission for food products from 15% to 8% for products with a total sales price of less than $15, and for products with a total sales price of more than $15 under the food category, Amazon will continue to maintain a 15% commission rate.

In addition, for the other 30 categories, Amazon will also reduce the minimum cost per item from $1 to $0.30; for jewelry and watch classifications, the minimum cost per item will be reduced from $2 to $0.30.

In the case of high-priced products, for the portion of the total sales price that exceeds $200, Amazon will reduce the percentage of sales commission for furniture goods from 15% to 10% (this change does not apply to mattresses); for parts over $250 in total sales price Amazon will reduce the percentage of sales commission for jewelry items from 20% to 5%.

For a comparison of specific rates, please refer to the form below:

In any case, the rate is reduced from $1.00 to $0.30, which definitely gives a lot of space for many sellers.

In addition, Amazon has also made adjustments in FBA distribution. Overall, it has risen slightly, but the increase is not too big.

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