Amazon Apparel Commissions reduced by 12%!!
Along with the impact of Shein, Temu and other e-commerce platforms on the U.S. e-commerce market, Amazon also had to find ways to consolidate its position as the dominant e-commerce company in the United States.
Recently, Amazon officially released the “2024 U.S. station Amazon logistics costs and sales commission adjustments and promotions” announcement, compared to previous years of substantial increases, this year’s Amazon unprecedented downward adjustment of many costs, so that a lot of sellers are surprised!
From this, we can see that Amazon’s adjustment this time can be really not simple, mainly including sales commission category, logistics and warehousing, new cold start these three aspects, do the U.S. station sellers need to do a good job sufficient attention!
Amazon apparel commissions
Amazon Apparel Commissions reduced by 12%!
This time, Amazon will reduce the sales commission of the following goods, mainly for low-priced clothing categories, the magnitude of the downward adjustment is still relatively large, in January 15, 2024 (U.S. time) effective.
- For apparel items priced below $15, the Amazon apparel commissions will be reduced from 17% to 5%.
- For apparel items priced between $15 and $20, the Amazon apparel commissions will be reduced from 17% to 10%.
- For all other items, the Amazon apparel commissions will remain unchanged.
Obviously, Amazon apparel commissions straight down to 12%, can be said to be quite big. So it’s finally spring for sellers doing Amazon apparel categories too! Not only has Amazon come with a large flow of evening, but also a certain advantage in price, profits are expected to be improved.
Some of the logistics / warehousing costs have been adjusted
Monthly storage fees are reduced
This time, not only is the clothing category sales commission down, standard size goods non-peak season monthly storage costs have also been reduced, effective April 1, 2024 (U.S. time).
- The average monthly storage fee for standard-size merchandise will be reduced from $0.87 per cubic foot to $0.78 per cubic foot, an average decrease of $0.09; the average monthly storage fee for standard-size merchandise will be reduced from $0.87 per cubic foot to $0.78 per cubic foot.
- Monthly storage charges for non-standard size commodities will remain unchanged.
Low Inventory Fees
One piece of news that won’t make sellers too happy, however, is that they will be charged a low inventory fee if their inventory is too low.
As the name suggests, if your product inventory stays below the 4-week sales level for a long period of time, then you will be charged a low inventory fee by Amazon. This is because Amazon believes that too low an inventory level will affect the speed of delivery of the item on Amazon FBA and increase the cost of delivery.
However, as long as the seller’s inventory can sustain more than 4 weeks of sales, then this fee can be waived.
In addition, there are two other situations where the fee can be waived:
- For new stores (Pro Accounts), the fee can be waived within 365 days of the first batch of inventory being received;.
- For new parent ASINs, the fee is also waived for 180 days after the first batch of inventory is received.
It is recommended here that some sellers and friends of ASINs with poor sales should get rid of their low inventory as soon as possible. However, the implementation of this policy will allow more sellers to consider the combination of self-shipment mode for combination marketing.
FBA downward adjustment of delivery costs
At the same time, Amazon FBA logistics delivery fees will also be reduced and take effect on April 15, 2024 (U.S. time).
- Standard size items will be reduced by an average of $0.20 per item; non-standard size items will be reduced by an average of $0.61 per item.
- Items priced under $10 will continue to receive an additional $0.77 per item discount on delivery costs.
Although the overall reduction is not very large, but for most of the small and medium-sized sellers is also a little surprise.