Amazon FBA Fees Going Up - 5 Things You Need to Know!

Timestamps:

00:00 - Introduction to Amazon FBA Fee Changes
00:21 - Additional Fees for Fulfillment Center Transfers
00:40 - Introduction of Low Inventory Level Fee
01:08 - Increase in LTSF and Aged Inventory Fees
01:42 - Referral Fee Reduction for Low-Priced Apparel
02:00 - New Lower Pricing Structure for Amazon Vine
02:31 - Importance of Sending Inventory to Multiple Locations
03:45 - Strategies to Avoid Additional FBA Fees
04:14 - Upcoming Changes in Return Processing Fees
05:00 - Speculations on Return Rate Thresholds
06:09 - Details on Returns Processing Fee for High Return Rates
07:00 - Anticipated Pushback and Updates on Return Fees
08:00 - Summary of Amazon's New Fee Announcements
09:30 - My Refund Guy Service
10:28 - Personal Announcement: Birth of Fifth Child

[healthynewliving]

Congrats on the new baby!

If there were any doubt in the past, Amazon is now clearly bad for business. We used to think they were good for bringing exposure to small businesses. However, the fees have gone up so much now that of every $2.00 we sell, $1.00 goes to Amazon. Out of the remaining $1.00, we have to cover PPC, COGS, business and liviing expenses. We are literally working our asses off to ensure Amazon's success - not ours!

I am not against any group of people or ethnicity, however, Amazon letting the Chinese sellers run over USA sellers is now taking its toll. Small businesses fuel the economy by providing spending power to the business owners and their employees. However, when a huge chunk of the US spending is going to overseas sellers, there is a ripple effect. United States small businesses wither and die, and so does a huge chunk of the spending with them. This blind capitalism is like shooting yourself in the foot because of the promise of a better pair of shoes. Crazy!

[RedsPureBotanicals]

Holy crap! Amazon will soon only be profitable if you are making insane margins.

[forgedfromfreedom]

We’re in the apparel category and ALL the negative announcements affect us. We even don’t benefit from the lower fees because our items are over $20. This spells the end of FBA for us. Ah well, our TikTok shop is starting to do very well, along with Etsy, Walmart, and Shopify.

[bombbooks]

Have learned a lot watching these videos. A year ago...I had started using a prep center based on the advice of a commenter in here. Was a game changer to allow me to scale both with time and logistics. A good prep center is the key once you get past the initial launch of doing test shipments

[AN-nlpu]

The low inventory fee is exactly the reason we need the FTC lawsuit.
This absolutely kills low-priced FBA items. Maybe that is the point?

[vilrey]

I'm glad you mentioned the actual shipping to FBA cost THANK you but speak on this more please 🙏🏿🙏🏿

[dylongarrett]

It’s sort of a good thing because it should reduce check in times of you can send it to a location that avoids Amazon fulfillment transfers - which can take 1-3 weeks

[amyhawkins]

When I first started doing Amazon I started in Retail Arbitrage. I've since moved away from that but at that time they were doing exactly what they're getting ready to start doing now, charge you a per unit charge if you sent to one location. The problem with choosing multiple locations is this.... when you go in to create your shipment plan under multiple locations, not only does it tell you where to send it but it tells you how many to send. Let's say you have a shipment of 30 items. it'll tell you to send 2 to Tennessee, 3 to Charlotte, 5 to California, and so on. This creates a higher cost on your shipping because the smaller the Box, the more expensive it is to ship. Also, you have to have multiple size boxes on hand at all times if you're shipping it yourself because you never know how many units they will tell you to send to a particular location. I remember sending in 20 items and it would tell me to send all but one of those units to 1 location, and then the single unit had to go elsewhere. At some point I just decided I would rather pay the per unit cost.

[SLinnovation]

Congratulation Steven. Beautiful Baby.

[drewstevenson]

Steven the aquarium is finally there!! It looks badass!

How did you fix the lighting issue?

[roundabout]

I love the baby pics; congrats. Amazon continues to get more challenging as time goes on.

[Mary-bhle]

Low inventory fee is ridiculous. What if you sell seasonal goods? If you sell Halloween costumes, your sales may peak 5-10days before but you don't want to send in more inventory by that time. Wont sell after 10/30 and now you are slapped with a long term storage fee. I understand Amazon wants to cover their loss when they need to ship across the country, but the way they are doing it is very dumb. Agh...

[UkjeNl]

Congratulations with your baby! 😍 And wish you luck and good health for your wife too!

[mariodiverdi]

Congrats on baby number 5! I have a quick question about Low Inventory Fee. Do you think it makes sense to raise prices when inventory drops below 50 days supply and then lower prices again once inventory is replenished? Thank you.

[IlliniPicker]

I was told the FBA fees were going to be lower (to help off-set inbound increase). I have changed my FBA setting to optimized.

[coolpeips]

Thanks for the digest, Steven! Does that mean we shouldn’t ship LTL since it’s going to the same DC? And we should only do UPS shipments? Thanks! And congrats on baby number 5!!!! So impressed! Hope your wife is doing well! :)

[humdog]

Great update and I like the new fishtank! Bruh come back and talk to us again in 2024 at my Tampa Bay Amazon Sellers Meetup group! Would be good to have you again! Peter

[sobhagya]

No free option is not there i have tried every possible way😢😢

[ccoinchris]

Probably cheaper to pay Amazon the .20c to ship to another center then shipping it yourself. I'm I missing something here lol?

[QuikCamo]

All bad news for us in seasonal apparel selling for $30