Referal Fee Percentage & Inflation
Amazon has a 2 bracket referral fee: $0.01 - $15.00 (8%) and above $15.00 (15%). Inflation is the highest in 40 years. Groceries and Gourmet Foods are up at least 20-25% over the past 18 months. Shipping costs have increased considerable over the past 12-15 months. Prior to the jump in inflation one could make a small profit, now it is a break-even at best. A product has to be priced above $17.00 to make about an 18% profit. This $15.00 (15%) threshold is forcing us to inflate our prices more to get a reasonable return which is not fair to the consumer. If the threshold were to be increased to $20.00 we could price our products with just a modest increase. The way it currently is, both the seller and the consumer are getting the short end of the stick. Please consider making a threshold adjustment.
Referal Fee Percentage & Inflation
Amazon has a 2 bracket referral fee: $0.01 - $15.00 (8%) and above $15.00 (15%). Inflation is the highest in 40 years. Groceries and Gourmet Foods are up at least 20-25% over the past 18 months. Shipping costs have increased considerable over the past 12-15 months. Prior to the jump in inflation one could make a small profit, now it is a break-even at best. A product has to be priced above $17.00 to make about an 18% profit. This $15.00 (15%) threshold is forcing us to inflate our prices more to get a reasonable return which is not fair to the consumer. If the threshold were to be increased to $20.00 we could price our products with just a modest increase. The way it currently is, both the seller and the consumer are getting the short end of the stick. Please consider making a threshold adjustment.
5 replies
Seller_4zBzdtgCyS9EI
2 bracket referral fee: $0.01 - $15.00 (8%) and above $15.00 (15%)
well, that's news to me. I pay 15% on everything. You are lucky to sell in a category that gives you such a break.
Seller_7LrAV0m5llaI7
Yea, everyone is getting hit. Our suppliers are even raising the prices.
If you want to make more profit, you have to either get your costs down or raise your prices.
That sounds about right depending on the category.
Yea, did you talk to your supplier and see if they can lower your pricing to keep it fair to your consumer?
Everyone in the world on and off Amazon is getting the short end of the stick these days. Inflation is a worldwide problem for the next few years. Sometimes you just gotta raise your prices. The consumer will still buy if they want it.
If Amazon raised the threshold, they would lose money and their fulfillment services would suffer. You know that their costs are going up too? Labour, fuel, property tax, etc, they are getting hit with inflation too!
As @Seller_4zBzdtgCyS9EI said, you should be lucky to sell in a category that gives you that kind of break. I'm at 12-15% myself.
Seller_obaXbOzWLSmF6
I agree completely. This is a major pain point for us. The amount of products we can sell for less then$15 is shrinking by the day. I would honestly be happy with $1 increase to the threshold.
Bryce_Amazon
Greetings @Seller_HvmFk9Jv1QylO,
Replying to you directly to ensure you see the message as well:
The 2024 FBA Fee updates were announced today, and there are some changes to referral fees. You can find the News Announcement thread here. If you have further questions about the changes, I recommend posting them directly in the thread!
