New Amazon inventory and inbound fees [Crew Review]

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Hey Reader,

Amazon just announced new seller fees that one Seller Central user calls “impossibly too confusing and granular.” Another user said whoever came up with this “should be fired and blackballed from the industry.”

So what’s the deal?

In a nutshell, Amazon is charging its third-party sellers for 1) placing inventories closer to customers, i.e., for distributing them to more fulfillment centers, and 2) not maintaining a good level of inventory. The first one is an inbound placement service fee (applicable to standard and Large Bulky-sized products) while the second is a low-inventory-level fee (applicable to standard-sized products).

Amazon is doing this to provide sellers “with a great value” and to “offer customers amazing service while reducing collective costs.”

For the inbound placement fee, Amazon gives sellers the option to choose between Premium and Discounted services. Under the former, a seller can send inventory to one fulfillment center, and Amazon takes care of how it is spread out. Under the Discounted service, on the other hand, the seller himself/herself sends the inventory to multiple centers. This can result in reduced fees or even no fees at all. These changes will be applied starting March 1, 2024.

Meanwhile, the low-inventory-level fee is one that is charged for standard-sized items that consistently carry low levels of inventory relative to unit sales. Amazon prescribes keeping at least 4 weeks of inventory to avoid this fee. It will be implemented starting April 1, 2024.

Amazon says that when these fees are applied, it will cost sellers an average of $0.15 more per unit sold.

It’s getting more expensive to sell on Amazon, especially in FBA. Are these additional fees less than what other 3PLs are charging? Amazon says yes. But it seems like sellers are not consoled by this.

However, it should be noted that while additional fees are being introduced, Amazon is also reducing a few fees, including the FBA fulfillment fee rates and non-peak monthly storage fees for standard-size products. 

Read the full announcement here.

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Amazon Top Terms

Delve into the past two weeks and uncover the Amazon top 10 search terms that have seen a spike in popularity from November 19 to December 22.



 In the latest Amazon top 10, a variety of keywords have embraced the chance to benefit from Black Friday discounts, resulting in significant sales growth. Taking the #9 position is the "soothe n snuggle otter," with sales skyrocketing from 328 units per day to an impressive 916 units per day amidst the significant discounts offered.

For a deeper dive into leveraging promotions and coupon codes as an Amazon seller, check out our comprehensive guide on Amazon Seller Promotions and Coupon Codes.

Amazon vs. Shein and Temu

Shein and Temu have become household names when it comes to fashion because of their low prices and a wide variety of products and styles. So to help out their third-party sellers who are selling under the apparel category, Amazon is reducing their referral fees as follows:


 The reduced fees will start to apply on January 15, 2024.

Etc.

Is GoTo a go? Indonesia’s biggest tech firm is in talks with TikTok to rescue the social media platform’s e-commerce store in the country.

Attribute. Amidst the busy holiday season, Amazon is changing the requirements for creating listings. Fortunately, existing listings won’t be affected.

Refused to refund. An Amazon seller from India was fined Rs 30,000 (approx. $359) and ordered to refund Rs 3,499 (approx. $41) for failing to act on a refund request. The seller said it was because the customer returned a different item.