Category: Amazon

Amazon is expanding its “Ships in Product Packaging” program, and you get discounts for joining it

Amazon is rolling out a plan to ship items in their original packaging. Starting February 5, 2024, all third-party sellers in the U.S. and Canada using Amazon’s Fulfillment service can join the “Ships in Product Packaging” program, which sends products in the manufacturer’s packaging, avoiding extra Amazon packaging. Sellers who participate can also get a discount on fulfillment fees.

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Amazon Posts

I have recently been hearing about Amazon Posts, the new way in 2024 for brand-registered sellers to share unique lifestyle images and product-related content through a feed. This feed is shown on your product detail pages in the “Inspiration from this brand” section. Although the feature was introduced in Dec 2022, it appears to have evolved significantly over the last several months. In June 2023, it was introduced in the Amazon Ads console and now seems fully ready for use.

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Amazon Announces Reduced Seller Fees for Low-Cost Clothing

Amazon has announced a reduction in seller fees, but exclusively for clothing items priced under $20. Starting in January, apparel priced under $15 will see a dramatic decrease in seller fees from 17% to 5%. For clothing items between $15 and $20, the fee is adjusted to 10%. This change marks a significant departure from Amazon’s previous increase in seller fees for clothing, which went up to 17% from 15% back in April 2018. Business analysts speculate that this fee reduction is Amazon’s strategy to better compete with low-cost fashion retailers like Shein.

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2024 Amazon US FBA Fee Adjustments

In 2024, Amazon will adjust its seller fees, including an average increase of $0.15 per unit sold, new inbound fees averaging $0.27-$1.58 per unit, and reduced FBA fulfillment fees by $0.20-$0.61 per unit. Additionally, referral fees for certain apparel items will be reduced, and monthly storage fees will decrease by $0.09 per cubic foot.

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Amazon Updates Referral Fee Calculation for Cross-Border Sales

Starting February 1, 2024, Amazon will introduce changes to the referral fee calculation for Marketplace Facilitator transactions. Previously, Amazon calculated the final price by applying the VAT rate of the destination country, resulting in varying referral fee amounts for cross-border shipments. With the new update, the referral fee amount will be consistent, regardless of the destination country. For instance, a listing on Amazon.de with a price of €119 will attract a referral fee of €11.90, irrespective of whether the product is shipped to Germany, Portugal, or Luxembourg, despite the different VAT rates in these countries.

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