Announcement: Amazon has announced fee changes that will be in effect on February 18, 2014. There are also associated fee increases for apparel expected to be introduced in May 2014, so stay tuned for that.
You can find out a full list of the fee changes on Amazon.
It seems like annual Amazon fee increases have become routine. Amazon explains that these fee changes are necessary to reflect the rising costs of storage, fulfillment, transportation, and customer service. Indeed, once you factor in inflation and rising fuel prices, a slight fee adjustment seems rather reasonable. In further defense, Amazon continues to grow, and as their base grows, so does your marketplace potential. The number of Amazon buyers, orders, and shipments continues to soar exponentially each year, so slight increases to assist in its operations are justified.
If you’re alarmed by this trend, it’s important to look at the big picture rather than fixating on the unilateral change. Don’t worry about the fee hike. Your main concern should be the overall feasibility of your sales operation on Amazon. FBA is amazing, right?
Quite frankly, does Amazon compare favorably to other e-commerce platforms such as eBay? Well, Amazon is definitely the preferred channel for e-commerce vendors because of its premium buyer base. Amazon buyers represent greater potential since they do not haggle like eBay buyers, and they are willing to pay more for a better buying experience and support. Most eBay sellers that switch to Amazon FBA experience a spike in their sales, and this is not a coincidence. The only time eBay holds an edge is if the offered product is a rare collectible item or antique.
The hassle you avoid and the time you save from FBA should justify the fees you have to pay.
At the end of the day, you’ve gained greater exposure to quality buys on Amazon, with buyers that are willing to spend more and irritate you less. Amazon is quickly establishing itself as the number one ecommerce option in several countries.
Still Worth It
The fees are still within a reasonable range and cost for doing business. Even if you fulfill the products by yourself, you’re at the mercy of the shipping costs set by shipping companies. So don’t fret – you shouldn’t lose any sleep over this fee change. It’s just a slight pinch. Because Amazon expects its marketplaces to grow with greater promise for sellers, you can only benefit by selling more and growing along with Amazon. You have to seize the opportunities Amazon affords you. Stick with Amazon FBA, and concentrate on selling. Await the advantages Amazon will develop for you as a seller.