If you are at the threshold of what Amazon consider a fair price and then this increase puts you just over that limit the bots aren’t going to use common sense and let you off are they?
Price gouging is a pejorative term referring to when a seller spikes the prices of goods, services or commodities to a level much higher than is considered reasonable or fair, and is considered exploitative, potentially to an unethical extent.
A marginal 2% increase isn’t considered a spike or exploitative and if they did suggest this to be so they would be equally guilty of it.
So how come some sellers got suspended for selling at the same price they’d already been selling at for the last several years?
For you yes but not for everyone.
Our fees on Amazon per item are 15.3% compared to Ebay with a managed payment fee of only 6.9%!
“To calculate the increase on fees that are a cash value (for example, FBA fulfilment, MCF, and storage fees), you should add 2% on to the cash value. For example, a £2.27 fulfilment fee becomes £2.32 (£2.27 + 2% = £2.32).”
2% of £2.27 is only 4.54p, so they’re actually profiting on sellers from this if they’re rounding whole pennies at the point the example shows.
No idea I don’t know the circumstances maybe you can tell me. Had amazon increased fees at the time and had the sellers passed those increases on to their customers which is reasonable or did they do something else?
There ya go in your case it works out cheaper for ebay over Amazon. Personally I sell on both platforms and will continue to do so until it becomes unviable and doesn’t work in my favour. I will also set my prices differently to take into consideration the difference in costs so the end result is my buyer pays the costs set by the platform and not me.
Yes and so will we sell on both platforms but you had said this
with their new integrated ebay payments system which actually works out higher fees than Amazon
which is not true for many.
We set our price based on the market - not on what fees we are charged.
Amazon’s passing on of this Tax goes against the governments intentions (if you read the government guidelines on the Tax). The Tax is aimed at large multinationals not at indivduals selling on sales platforms. As such this passing on should be challenged legally. The only problem is, if this additional 2% can be challenged succsessfully, Amazon will only wait a couple of months, and then randomly increase all fees by 2% citing inflation, so its a bit of a catch 22. BUT this passing on should be challenged and not that it affects me much as I am slowly winding down my Amazon selling, I will be writing to my MP.
If you read the forums at the time many received an email stating they’d been suspended for price gouging, even though they had done nothing of the sort.
It’s obvious Amazon had ‘decided’ what the market price should be and then the bots had gone mad.
That’s just selling fees. FBA and storage fees are also going up.
Actually, I prefer eBays fee structure now they’ve moved over to managed payments.
All it costs to sell there is the % commission + a one off 36p transaction charge. That is far less than what the fee was for accepting the payments into Paypal. ie: Sell an item for £100 @ 12% = £12 eBay fee + the new one of fee of 36p = £12.36 as compared to previously where Paypal took a fee. Then that would have been £100 sale @ 12% = £12.00 + Paypal fee of approx £3 = £15 total, it’s a no brainer.
Thats only half of the comparison what is it by their method ie up from 15% to 15.3% the way I calculate it is if the costs are £15.14 and the fees 15% this works out as £2.271 but with an increase of 2% this increases the total to be £2.3164 so the increase if rounded is the same as using the example you gave.
I don’t do FBA so it doesn’t affect me but the end result is the same, you cost the product your overheads which include any service costs and pass them on to your buyer. If you don’t then you will go under very quickly unless your overheads are low. My warehouse costs went up by 4.6% in March just before the lockdown I didn’t gripe about it its just one of those things so I adjusted my prices to account for the rise in my costs. Job done.
Totally agree with you it’s not going to hit them at all which was the purpose of it.
The price is the price. You either compete with the other sellers price or you get no sales. If you have your own products you have the luxury of adding this extra cost. Most sellers do not have this luxury.
This will be approx £300 a month out of pocket for me.
Hi Abbey I am going to guess you only sell small quantities and maybe handmade with you not doing fba etc.
But it’s a big chunk we already pay amazon around 10k a month in fees and storage and a increase hits us so nope it’s not good.
If it does not affect you good for you but for a lot of us it does.
I’ve never seen anyone be so apologetic towards a multi-billion company that has been known to evade taxes left and right while growing its position as a marketleader leaving less and less margin for the smaller business owner(s).
Yea totally agree we are around the same when we factor fees and storage then if this other one comes in next year that’s a part time wage who takes the fall us or the employee.
Life’s a b…h but hey hoo nothing we can do Amazon win this one again
Has anyone petitioned the government on this? It seems utterly insane that they are taxing us small businesses and Amazon effectively are running as normal - i’m sure the same will happen with the other huge organisations this is meant to impact too!
I see little point. This was always going to be the end result and i’m sure the government was warned of this and went ahead anyway. What i wasn’t expecting was that Amazon would be so blatant about it.