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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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IRS News: $600 threshold for 2023 is now postponed

Big news for anyone dealing with third-party platform payments: The IRS has announced a delay in implementing the new $600 Form 1099-K reporting threshold for 2023. Instead, they plan to phase in a higher threshold of $5,000 starting in 2024. This follows the decision to maintain the existing $20,000/200 transaction threshold for the 2022 tax year, which will now continue through 2023 as well.​

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You may receive a 1099-K from Etsy this year

If you’re an Etsy seller in the United States, there’s an important change you should be aware of for the 2023 tax year. Etsy is now required to report to the Internal Revenue Service (IRS) the sales amounts of any U.S. seller who made over $600 in gross sales. This is a significant shift from the previous threshold, which was $20,000 and at least 200 transactions. Because of this lower threshold, many sellers who haven’t received a 1099-K form from Etsy in the past will likely receive one this year.

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