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Free market Analysis
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Free market Analysis
+1 801-210-0894

Author: David Narayan

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Shopify adds Amazon order tracking to their Shop app

The Shopify app meant to compete with Amazon is now tracking Amazon orders. 

Shopify launched the Shop app in 2020 to offer users a way to consolidate orders from all stores running the Shopify platform. This made it easier for customers to track their orders and deliveries for all purchases made through the platform but was wanting for certain features. 

Lackluster Beginnings

While many found it to be quite helpful, it certainly wasn’t a replacement. For starters, it lacked the power of the Amazon Marketplace to search for any product from any of its stores. This made the initial reception of Shop lackluster in comparison to Shopify’s competitor, Amazon. 

Originally there was a focus on the app’s Shop Pay features that included recommendations and the aforementioned tracking feature. 

However, the app’s tracking feature has expanded significantly since its conception. It can now automatically detect orders from email and Amazon and add their tracking information. Shop extended its reach to tracking packages found in Gmail and Outlook with support for over 600 carriers. 

Most recently, the Shop has expanded its tracking capabilities to include Amazon. Users can now link their Gmail, Outlook, and Amazon accounts to Shop, and allow it to track these orders as well. Thus, creating an order tracking service that includes both of the competing platforms. 

Privacy and Data Questions

There is no denying that the app offers a great benefit to consumers. The main concern is regarding the fact that it is unclear what Shopify is doing with the order details pulled from Amazon and Outlook. Shop’s privacy page includes information on Gmail but fails to mention the others. 

Therefore, the user data that Shopify can now access and how they are utilizing that information is currently unknown. 

We can speculate, however, that Shopify is shifting its priorities to Shop’s tracking features to analyze consumer behavior across multiple eCommerce platforms. 

Conclusion

We keep our fingers on the pulse of all things e-commerce. Anata will bring you the news you need to know to stay competitive and in the know of today’s digital marketplace.

Contact us today for help managing your Amazon Marketplace and getting the edge you need. The services we provide range from education to the total handling of your Amazon profile. This frees you to work on the big picture. 

What do you think of Shopify’s Amazon tracking updates? 

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Grow Your Brand Beyond Amazon With a Strong DTC Strategy

Have you found yourself wanting to grow your business beyond Amazon with your own Direct-to-Customer (DTC) brand? If so, it can be difficult to know where to start (let alone what to do after you’re up and running.)

There were over 256 million digital buyers in 2020, and many of them shopped with Amazon. That’s a huge audience with a large amount of potential. 

So, what if you could utilize Amazon’s audience to grow your brand? 

To answer that question, we’ve made the following guide to help you establish your own DTC strategy. This is something that businesses can seek after while still utilizing the Amazon marketplace. 

Use Amazon to Build Trust 

Customers already trust Amazon. When they purchase a product on Amazon, it’s not the seller they’re trusting. It’s Amazon. 

That said, a reputable company on Amazon is extremely valuable and there are ways you can build customer trust through Amazon too. 

Think of selling on Amazon as an opportunity to showcase your products. Brand exposure raises the awareness of customers. Should they purchase, sellers can incentivize the customer to buy more from the brand.

One way they can encourage customers to do this is directly from their brand website rather than Amazon. 


Although this method may not be profitable in the short term, the long-term trust it builds between customer and brand is invaluable. Trust is what converts an Amazon store customer to a direct customer.

Building this trust takes time and the effort to engage your customers to interact for long after you’ve made the sale. 

So, treating Amazon as a vehicle to build direct customer relationships is the first step to DTC sales. What’s more, it can be more effective than high-cost marketing efforts off of Amazon. 

Start Direct Relationships With Your Amazon Customers

Typically, you have no opportunity to re-engage a customer on Amazon. You can make sales, but there’s no means to acquire actual customers. 

However, if you’re conscientious of Amazon’s terms of service, there are still means to engage your Amazon customers outside the platform. 

Engaging customers through email and text messaging campaigns are the most effective ways to interact. You only need to add value to your products that get customer consent to interact beyond their Amazon purchase. 

Lifetime warranties, content clubs, free products, anything that adds value and directs customers to sign up for your leads list works for this. As long as the added value is part of the product, it remains safely within Amazon’s terms of service. 

A/B test these add-ons to determine which attracts your target audience best. Then it’s merely a matter of marketing to keep them engaged with your brand.

Remember, once a customer has reached this point, they expect more value. The higher the value, the more likely they will convert to a direct paying customer. 

Source Reviews on Amazon

With millions of reviews from customers, Amazon has a well-established review system that has customer trust.

Brands can leverage this system to establish their credibility and customer trust. 

Push for positive reviews on your Amazon listings. Any positive reviews you accumulate will offer an opportunity for your marketing campaign. You can then use these reviews in ads, email, and social media as positive testimonials about your customer service, brand, and products. 

Through these off-platform marketing campaigns, featuring trusted Amazon reviews, you can then offer your target customers incentives to purchase from your brand. These can take the form of coupons or other deals applicable specifically to your brand’s website. 

A compelling Call-to-Action backed by trusted reviews is more likely to convert than one without them. 

Amazon as Marketing

Amazon is a competitive marketplace. Between high fees and intense competitors, it can be difficult to make a profit. However, it can also be a cost-effective marketing channel. 


Shifting to this strategy is the most likely to convert Amazon customers to direct customers. What’s more, it can be more cost-effective than the immense cost of sinking funding into acquiring direct customers off the platform.

Take the opportunity of showcasing your products on Amazon to learn about your customer base. Find out what drives them. Innovate around what you learn. 

Even taking losses on specific products on Amazon may well be worth the traction of initial sales. Rather than profits here, you are looking for the opportunity to convert these sales into long-term, direct paying customers. 

Conclusion

Converting customers and developing your DTC brand can be challenging. Let alone managing your Amazon Marketplace in the process.

Contact us today for help doing just that. The services we provide range from education to the total handling of your Amazon profile. This frees you to work on the important parts of running your brand. 

Your profits are our profits because we don’t get paid unless you do. What are you going to do with all the extra time you have after we come in?

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How Amazon Spotlights small businesses and Helps them succeed

Small- to Medium-sized businesses (or, SMBs) that sell on Amazon see higher revenues on average than those that don’t.  

This is partly because Amazon invests heavily in tools, resources, services, logistics, and assets that allow SMBs to succeed on the Amazon Marketplace. Let’s go over some of the ways that amazon works to spotlight the SMBs that utilize their platform:

Educational Resources 

Amazon provides SMBs with programs and information to help them succeed. 

Amazon Small Business Academy is a program offered by Amazon to empower SMBs. Educational tools show business owners how to expand their businesses into the digital world and reach customers globally. 

The program includes various educational initiatives such as Amazon Pathways, a virtual boot camp. This provides current and potential SMB owners with the means to gain essential digital skills to remain competitive in e-commerce. The course takes place during an immersive eight-week virtual experience.  

Amazon Pathways offers participants webinars with live demonstrations and expert guests. Sellers can gain important insights into selling on Amazon. 

And this is only one of the initiatives from Amazon that supports SMBs.

Digital Resources 

In addition to educational offerings, Amazon offers SMBs access to digital resources and tools. Amazon launched more than 135 of these in 2020 alone.

These are tools that, have proven much needed by SMBs so they can effectively maintain their physical and digital market presence. 

These tools allow SMB owners to connect with their customers, and develop their e-commerce strategy.  

This includes Amazon’s Black Business Accelerator program, dedicated to the growth and development of new Black-owned businesses. The program provides financial assistance, coaching, and promotional support. 

Additional tools include “Repeat Purchase Behavior” which gives sellers insights into how customers engage with their brands. Thus, allowing SMBs to leverage this data to better market to them. 

“Brand Follow” allows SMB sellers to connect with the customers who have shown interest in their brand through features such as personalized homepage posts. 

And these are only some of the tools available through Amazon.

Amazon offers a vast array of resources that empower small businesses to leverage an abundance of data on their customers. This, in turn, gives a tremendous opportunity to grow and develop their marketing strategies.  

Amazon Invests in Sellers

According to Amazon, they invested $30 billion in logistics, tools, services, and programs to promote seller growth between 2019 and 2020.

This is because independent sellers are essential to Amazon’s business model. They make up the bulk of products sold. What’s more, Amazon says SMB products make up more than 50% of all sales of their online stores. 

This is why Amazon invested over $100 million to boost small businesses in 2021 to help them boost their reach and sales during Prime Day.

FBA Extends Small Business Reach

The biggest challenge to small businesses has always been logistics. 

Amazon FBA helps small businesses solve this problem. Letting Amazon do the packing, picking, and shipping frees small businesses to focus on the work of selling and marketing their goods. 

It also gives SMBs the power of Amazon’s quick delivery service. All shipping performs at the high-quality level modern buyers have come to expect. This is a feat typically unattainable for SMBs. 

Leveraging FBA also equips SMBs to utilize a storage space that is otherwise not feasible for small businesses.

Amazon fulfillment centers offer an immense amount of storage for SMB products.

Access International Markets 

Amazon operates out of 13 countries and ships to over 100 countries worldwide. 

This offers SMBs access to a global customer base that features 200 million Prime members. By leveraging Amazon’s international logistics, any business can grow and diversify sales to include international customers from Asia to Europe. 

Amazon even provides tools to help SMB sellers access these markets. 

These include the Seller Central Language Switcher which enables sellers to manage operations in all Amazon marketplaces across the world in English. With this, sellers can operate internationally with a familiar interface that is easy to learn 

For those interested in selling in Europe, Amazon provides a simplified method. An Amazon European stores account authorizes SMBs to create and manage products in Amazon’s online stores in Germany, the United Kingdom, France, Italy, Spain, and the Netherlands. 

Conclusion

These are just some of what Amazon offers SMBs so that they can succeed and remain competitive with the big sellers.  

Whether you’re a small or medium business, Amazon has a vested interest in your success. Unfortunately, even after going through all the tools and options offered, it can feel difficult to “break out” of the crowd.

That’s where we come in. The team of experts at Anata is here to guide you through the complicated world of Amazon. Contact us today for help managing your Amazon Marketplace. 

The services we provide range from education to the total handling of your Amazon profile. This frees you to work on the big picture, and not stress the minutia. 

We are a performance-based company. So, we don’t get paid unless you do. 

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How Do Amazon FBA Fees Work and How to Profit as a Seller

There are many different fees for sellers working through the Amazon marketplace which can often lead to confusion. Forgetting to account for all of these fees (or even just misunderstanding them) can be the difference between profit and loss. 

That is why we have made this guide to help FBA sellers work through Amazon’s fees, and help determine how to best price their products.

Fees for All Sellers

Regardless if you use FBA or are an FBM seller, everyone who sells through the Amazon platform must pay referral fees.

This is the commission paid to Amazon for every item sold using their platform. You pay this fee whenever you make a sale on Amazon, and directly from your Amazon account. 

These vary widely from 6% to 20% but average at 15%. The only outlier is the Amazon Device Accessories category at 45%

For a complete list, sellers should consult Amazon’s referral category guidelines provided on Seller Central.

Individual vs Subscription fees

Amazon features two options for seller accounts. These are professional and individual. 

Whichever account you have will determine if you pay a fee whenever you make a sale or a monthly fee.  

Individual seller fee 

For unsubscribed sellers, Amazon charges $0.99 for every sale. This is best for small volume sellers that expect less than 40 sales a month, but not ideal for scalability.

Similar to the referral fee, this is a fee that is only paid once an item sells. 

Professional seller subscription

This option is best for sellers who intend to have more than 40 sales in a month. Professional sellers pay a monthly fee of $39.99 rather than a per-item fee. 

Amazon charges this subscription directly to your Amazon account balance or your credit card every month. 

Refund administration fees

Whenever a customer requests a refund and Amazon issues the refund, Amazon charges you a fee for processing. Depending on the cost of the item, Amazon will charge $5.00 or 20% of the refund depending on which is less. 

FBA-Only Fees

FBA sellers must pay a unique set of fees that cover the cost of fulfillment and storage. 

FBA fulfillment fees

Amazon charges a fulfillment fee according to the size of the product in question. This payment is to cover the cost of Amazon fulfillment employees picking, packing, and shipping your inventory for you,

These vary based on category and size tier; charges are on a per-item basis. Accounting for the 5% fuel and inflation surcharge introduced on April 28, this fee ranges from $3.07 for a small standard, non-apparel, non-dangerous good at the least. 

At its highest, this fee is $179.28 + $0.83/lb above the first 90lb for a special oversized, dangerous good. 

For a complete chart of FBA fulfillment fees including categories and size tiers, sellers can consult the FBA fulfillment fee help page on Seller Central. 

Storage Fees: Monthly

Amazon charges a fee for every month based on the average unit count of an item stored at their fulfillment center. This amount for this charge varies based on the size tier of the item and according to the time of year.

January through September, non-dangerous good storage fees range from $0.83 per cubic foot for standard-sized items to $0.53 per cubic foot for oversized items.

This spikes significantly during the holiday season of October through December. This time may range from $2.40 per cubic foot to $1.20 per cubic foot respectively. 

Sellers interested in calculating their expected monthly storage costs can follow the following formula provided by Amazon:

Fee per product = average daily units x volume per unit x applicable rate.  

Storage fees: long-term

In addition to the monthly storage fee, Amazon charges for long-term storage. This is for inventories that have been in storage for more than 365 days. 


The charge for this fee is “$6.90 per cubic foot or $0.15 per unit, whichever is greater.”

Amazon FBA calculates the age of inventory on a first-in, first-out basis across their entire fulfillment network. Items that have sold deduct from the oldest inventory. This means any time an item leaves a seller’s FBA inventory, new or old, the item deducts from the oldest stock of that same item.  

FBA sellers interested in avoiding these fees can use Amazon’s Recommended Removal report to determine which ASINs they should remove. This report identifies ASINs subject to long-term storage fees up to 30 days before the charge date. 

Conclusion

Tracking the fees Amazon charges is essential for FBA sellers to make a profit.

Contact us today for help doing just that. The services we provide range from education to the total handling of your Amazon profile. This frees you to work on the big picture, and not stress the minutia. 

We’re dedicated to your success because we don’t get paid unless you do. 

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Amazon Seller News as of April 2022

It is important to track changes in the Amazon Market place along with how they can affect your business. Luckily, Anata is here to help you keep up with the latest Amazon news. 

Here are some of the most important updates for April 2022. 

Prime Day 2022 is Coming in July

Amazon announced Prime Day is coming in July.

For those not familiar with the retail holiday, Prime Day offers a spike in sales across the platform. Although Prime Day is exclusive to Prime members, the offered discounts draw significant engagement. In 2019, it even surpassed Black Friday and Cyber Monday together. 

Although Amazon hasn’t shared the exact date yet, we recommend that FBA sellers prepare their FBA inventories in advance.

FBA Shipping Deadline Set for Prime Day 2022

Amazon has set a deadline for FBA inventories for Prime Day.

Those wanting to have their inventory ready for Prime Day will need to have their inventory in by June 20. Any inventory arriving after this date will not be eligible.

FBA is Offering an Extra-Large Storage Type

As of April 18, Amazon has added a new store type: extra-large. This is in addition to oversized storage types. Amazon now measures quantity limits for these item sizes separately. 

Those seeking additional information can find it on the Extra-large FBA inventory help page. 

Price Increase on Small and Light Products

As of April 28, the threshold for eligible small and light FBA products has raised from $8 to $10.

This will allow sellers offering small and light-sized products via Amazon’s FBA service to diversify their FBA inventories. 

Amazon sellers offering small to light products should consult the FBA Small and Light help page for more information. 

Updated FBA Fulfillment Fees

Starting on April 28, Amazon has implemented a 5% fuel and inflation surcharge in addition to current fulfillment fees.

We recommend that concerned FBA sellers read our coverage on the fee change for additional information on how this fee may affect them. 

Search Result Update for Product Images

Amazon has made it so that customers can now scroll product images without going through a listing’s product detail page. Customers are now less likely to click through to products with lackluster images for their products.

This increases the importance of providing informative, high-quality images on your Amazon listings.

For tips and tricks on getting the most out of your listings’ images, we encourage sellers to read our guide to make your products stand out on Amazon. 

Amazon is Automating the Removal of Aging Inventory

As of April 15, Amazon is removing inactive inventory from its fulfillment centers. 

This inventory includes units that have been in storage for over 365 days and are subject to long-term storage fees. ASIN units that haven’t sold in six consecutive months and have been in storage for longer than 180 days are also subject to removal. 

There is currently no option for sellers to opt out of automatic removals.

Fee Update for US Multi-Channel Fulfillment

Starting on May 9, fulfillment fees for multi-channel fulfillment orders will increase. Amazon stated that this fee is to keep them competitive with other logistic providers such as UPS and FedEx.

As of August 1, orders in Alaska, Puerto Rico, the US Virgin Islands, and Hawaii will see additional surcharges.

FBA Selection Changes 

After March 1, eligible sellers will see a new monthly 5% rebate on sales for new-to-FBA ASINs for those participating in Brand Registry.

This 5% rebate affects fulfillment, and will qualify for certain branded new selections: 

  • Up to 100 units of eligible apparel and shoe items for 120 days. 
  • Up to 50 units of eligible standard-sized items for 90 days. 
  • Up to 30 units for eligible oversized items for 30 for 90 days. 

Sellers interested in these changes should visit the FBA New Selection help page for additional information. 


Two New Brand Analytics Search Dashboards 

For sellers enrolled in Brand Registry, Amazon launched new search dashboards for Brand Analytic.  

These new dashboards will provide insights into customer shopping funnels and top keyword searches relevant to your brand. 

  • The Search Catalog Performance dashboard – This dashboard provides sellers with metrics such as impressions, cart adds, purchases and clicks. 
  • The Search Query Performance dashboard – This dashboard provides sellers insights into which keywords resonate most with their customers and the volume at which they are searching for them. 

These new dashboards will provide exciting new marketing tools for any eligible brand’s marketing strategy. 

Stay Up to Date On Amazon Changes With Anata. 

At Anata, we keep our finger on the pulse of the Amazon Market place. From fee changes to new features, we will keep you up to date on the important news for Amazon Sellers. 

We also offer innovative services that help handle and improve your Amazon Marketplace.

Contact us today so we can track the changes that affect you, and free up time so you can focus on the big picture aspects of your business.

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Sellers to Suffer Nine Months Of $10,000 Container Rates

Over last year, we saw a dramatic rise in container rates. These peaked at $10,400 in September, and have yet to decrease to pre-pandemic levels. The current rates still hover at ten times pre-pandemic costs.  

These rates have risen alongside an increase in delays. These have caused goods to make the journey from China to U.S. warehouses. 

What Is Causing This?

The global freight shipping network is a delicate system. Any form of disruption ripples through the whole system. Effects of the pandemic alone have been cascading across the network for the last two years. 

In addition to this major factor, other problems have recently compounded the strain of the pandemic.

Congestion

The newest lockdown in Shanghai has led to two-day waits for arriving vessels, and a drop in export volumes. In an attempt to circumvent this, some have begun diverting exports to other ports less capable of handling additional volume.

Other Chinese ports are experiencing similar problems. Ports such as Yangshan are operating at 50% capacity due to Covid restrictions.

One in five of the global container ship fleet is currently stuck in congestion at major ports throughout the world. This dilemma has only worsened as freight previously carried by train to Western Europe via Russia divert to seek alternative sea routes.

Shipping Container Shortages

Furthermore, container shortages have persisted well into this year. These are the lifeblood of the shipping industry. Their shortage has made containers harder to buy or rent. 

These shortages are partially caused by the previously mentioned congestion. This has tied up shipping containers in transit, unavailable for new exports.

The same lockdowns that are causing congestion at major ports have dramatically impacted manufacturing’s ability to produce more containers. Thus, they are unable to keep pace with increased demand. Available shipping containers have therefore become a highly sought-after commodity. 

What Does All This Mean?

This will most likely continue for some time with no end currently in sight. Even when China lifts Covid restrictions, the expectation is for the surge in export traffic to increase congestion further. The resulting bottleneck is will reverberate across the many aspects of shipping for quite some time. 

It is uncertain when rates will return to normal. However, shipping costs will remain high until these issues resolve. Retailers should prepare themselves to compensate for these costs for the foreseeable future. 

We here at Anata are monitoring the situation for any changes. Contact us today for help handling your Amazon Marketplace during this logistical struggle. 

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Chinese Sellers Don’t Want to Rely on Amazon

For several years, Amazon has been the primary means for Chinese businesses to sell their products directly to customers. By enabling them to circumvent intermediaries such as Walmart, Amazon presented tremendous potential. 

However, Chinese sellers and Amazon have fallen out in their relationship. Today, Chinese sellers are increasingly seeing Amazon as a chokehold on their business.

Why Chinese Sellers Want to Break From Amazon.

The reasoning behind the Chinese seller’s break from Amazon is somewhat complex. The best breakdown comes from the  Op-Ed titled Defusing the Risk of “Chokehold” in China’s Cross-border E-commerce channels. 

The Chinese Publication People’s Daily Overseas Edition published the story by Hong Yong on March 22. Yong, an associate research fellow linked to the Ministry of Commerce, is intimately familiar with the topic.

In the op-ed, Yong discusses three reasons that Chinese sellers should leave Amazon.

  1. Fees – Yong states in the piece that Chinese foreign trade companies already face relatively high operating costs. The cost of increased Amazon fees seems to only exasperate the issue.
  2. Account Suspension – Last year, Amazon banned several of the top Chinese sellers for multiple TOS infractions. These include allegedly creating fake reviews on their products. Hong Yong cited this as a “serious blow to small- and medium-sized enterprises.”
  3. Availability of core consumer data – The last grievance Yong cites is the lack of availability of buyer information for Fulfillment By Amazon sellers.

He continued in the Op-Ed to praise the independence offered via establishing Chinese-owned direct-to-customer sites. He even urged Chinese sellers to make the transition from “made in China” to “Chinese Brands.”

What Does This Mean?

It is uncertain what this means for the future of Chinese sellers on Amazon. The platform remains a necessity for many Chinese sellers seeking to remain independent of foreign businesses. However, many sellers have shifted from Amazon to Walmart following the mass seller suspensions. 

One thing this does mean for the Amazon Marketplace is that the number of American sellers has been gaining, and the number of new Chinese Seller registrations has dropped significantly.

This marks a significant change from the previous years where Chinese sellers dominated the market shares.

We here at Anata, as always, are watching the situation closely for any meaningful changes. Sellers looking for help with handling the turbulent Amazon Market place should contact us today.

We provide meaningful help to sellers with brand essentials, advertising, and more. As a performance-based company, the success of our clients is essential. We don’t get paid if you don’t get paid. 

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Amazon’s Third-party retailers Now use ‘Buy with prime’ Shipping Service


On April 21, Amazon announced an exciting new service that will benefit customers and retailers alike. The new service, “Buy with Prime” is set to expand Prime benefits to sites other than Amazon.

So, let’s take a look at this exciting new service, and what it means for retailers.

What is it?

Buy with Prime is Amazon’s new service that allows retailers to utilize Amazon’s delivery network to fulfill orders on their own websites. 

In addition to this, Amazon will fulfill the order from the seller’s existing Fulfilment by Amazon, FBA, inventory, and combining storage costs in one place. 

That means online merchants will be able to list their products with Amazon prime perks such as next-day delivery. For Prime customers, this means they will be able to shop with their Amazon information for participating third-party sellers. 

So, Prime members will be able to use their Prime benefits off Amazon, and merchants will be able to list their FBA products on their own websites.

What Does This Mean for Sellers?

Initially, Buy with Prime will be invitation-only for merchants using FBA.

Participating sellers will be able to add the service to their independent websites. The add-on will include an Amazon badge and delivery options for Prime members for eligible items. That would make Prime members potential customers for any retailer with Buy with Prime.

These retailers will then be able to offer expedited checkouts and fast delivery on their own direct-to-customer sites. They get this while utilizing the same inventory they currently have in Amazon fulfillment centers.

Retailers will also receive shopper order information such as email addresses so they can improve the relationship with their customers directly. 

What Can We Do? 

Buy with Prime is set to roll out this year by invitation only. However, there is still much retailers can do to prepare to add this service to their websites. This includes expanding their FBA inventories and evaluating their ambitions off the Amazon Marketplace. 

In the meantime, you can contact us here At Anata for assistance with your Amazon Marketplace needs. We help with brand consulting, inventory, market analysis, and more. As a performance-based service, we only get paid when you do. 

Free up your time spent handling your Amazon Marketplace so you can keep track of the big picture with Anata. 

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New Amazon FBA Fee Change (April 2022): Do Sellers Need To Worry?

As of April 28, Amazon introduced a new 5% surcharge on shipping through fulfillment by Amazon. This means that only FBA sellers will experience any change to fees. These changes will not affect sellers that are shipping using the fulfillment by merchant model.

But what the sellers that this policy does affect? What does this mean for them? Below we’ll get into what the fee change is, what it means to you, and how to stay on top of new changes to come.

What is the Fee Change?

Amazon’s new fee is specifically for fulfillment by Amazon sellers. The increase does not affect the Amazon commission fee. What it does affect is the fee Amazon charges for picking, packing, and shipping.

For example, the cost of the fulfillment fee per unit for a small standard package of 6-12oz went from $3.07 to $3.22. 


For those concerned about the cost of heavier per unit fees, a large oversized package has gone from $82.56 + $0.44/lb above the first lb to $86.56+$0.46/lb, etc.

In a notice to sellers, Amazon stated that this increase  accounts for “higher permanent operation costs.” Adding that this partly includes Amazon’s recent warehouse expansions, increased wages, and 750,000 new workers. 

It is also safe to conclude Amazon is also accounting for an 8.5% increase in inflation, and the 48% rise in gas prices over the last year.

What’s this Means for Sellers.

The expectation is that this will impact some sellers more than others, but it is not expected to force most to raise prices.  Other fulfillment solutions such as FedEx have applied their own new surcharges. This makes FBA still the most cost-effective way to fulfill orders on average.

Therefore, it’ll be best not to panic. The effect on the bottom line for most sellers will be minimal. However, it is still recommended that sellers be conscious of the change.

Conclusion

Although it is best not to worry about the change in fees, sellers should keep track of all changes to ensure all their products remain profitable.

Contact us today for help doing just that. We provide education, brand essentials, and total handling of your Amazon profile. This will help improve your chances on Amazon Marketplace no matter how you ship.

We don’t get paid unless you do, and that means your success is our success.

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Amazon slaps U.S. Sellers with a 5% Fuel and Inflation Surcharge

As of April 28, Amazon is applying a 5% surcharge to all third-party sellers to offset its rising costs. The stated purpose of this is to cover the increased fuel and inflation prices.

To offset the costs of inflation and a spike in gas prices, Amazon is applying a 5% surcharge to shipping for the 2 million third-party sellers that make up half of the sales on the platform. The surcharge is set to apply to all apparel and non-apparel items and affects all sellers that utilize shipping through Amazon such as Fulfillment by Amazon users (FBA).

In a notice sent to sellers in the middle of last month, Amazon stated that costs were rising due to increases in hourly wages, hiring 750,000 new workers, and construction of additional warehouses. Since the start of the pandemic, Amazon has increased the number of fulfillment centers by 30%. 

“In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” said Amazon in the notice.

According to federal data, inflation has increased to 8.5% this year. This is compounded by an increase in gas prices by 48% over the last 12 months.

This fee hike follows another 5.2% fee that took effect in January and a year in which Amazon collected approximately $103 billion in fees that made up approximately 22% of its revenue. 


According to research done by the Institute for Local Self-Reliance, ILSR, a small business advocacy group, Amazon’s fees have increased by 15% since 2014. Stacy Mitchell, the co-executive director of the group, criticized the new fee, stating antitrust concerns. 

With the rising fees, some sellers are concerned they will be forced to raise prices, passing the cost of the fee on to the consumer. 

“We absolutely will need to raise prices,” Molson Hart of Viahart Toy Co which sells on Amazon, told Bloomberg. “Some sellers cannot because customers are not accepting the new higher prices.” 

Amazon announced that these fees would apply to all products ordered before April 28 that were scheduled to ship afterward. On the same day, Amazon released its earnings report for the first quarter of the year. Said report showed that Amazon reported its revenue increased by 7%, the slowest quarter since 2001.

We here at Anata are watching the situation closely, and encourage sellers to contact us for help handling the ever-changing landscape of the Amazon Marketplace.

What do you think of the new Amazon seller fees? 

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