Fee Explanation Please
Hi anyone please explain to me what is DIGITAL SERVICE FEES AND OTHER FEES that amazon taking? I didn't see that previously and didn't realize it. I only though Amazon takes monthly subscription charge. Not sure what these 2 extra fees that mentioned. Thank you.
12 replies
Seller_7LrAV0m5llaI7
It's a fee imposed by Justin Trudeau and the Canadian liberal government that backfired.
sellercentral.amazon.ca/help/hub/reference/GMVQXVHHG8Q8KN7L
Seller_9ESGZSEmjn9jS
Hi
Yes. Amazon has started charging the digital service fees, unfortunately and you have to adjust your price accordingly.
About the other two fees you are not aware of, the FIRST one is REFERRAL FEES (AMAZON commission, 15%) and the SECOND fees is PICK AND PACK FEES (IF YOU ARE USING FBA). The THIRD and the last fees is DIGITAL SERVICE FEES.
Oh! There is also FOURTH type of fees : LOW INVENTORY FEES. If there’s demand and supply is low, get ready to pay a large chunk of margin to AMAZON.
Then there are miscellaneous fees: subscription fees, storage fees etc.
Seller_7LrAV0m5llaI7
Yes, he imposed a digital services fee that is supposed to be paid by all the big ecommerce and big tech companies in Canada, but Amazon didn't see it that way and decided to have their sellers pay the federal government digital services fee instead and passed it along to the sellers, instead of Amazon paying the fee from their profits like the tax was designed to do.
It was supposed to be a tax on big tech companies, but in the end, us as sellers are the ones who are getting screwed.
You should complain to your local member of parliament. If they aren't aware of the consequences of the laws they have passed, then they should be.
Seller_KEFk8ucPv8VdM
oh man its crazy fees. What can we do now? Is most sellers here or has quit or doesn't even realize like me. I really don't know if this was ruled by Government or the Amazon new policy. It's way to expensive life is becoming.
Seller_aHmoLjVXh7gzL
I don't mind adjusting my prices accordingly. However, the un-informed sellers are taking advantage of my price increase to take over the buy box. It is very unfortunate because three things happen:
1. The premium status is taken from the brand.
2. The informed sellers are losing sales along with the buy box, leaving us with a choice to lower our price for sales or wait it out in hopes that the low seller runs out and cannot afford more stock.
3. We now have to pay more storage fees while we wait for our turn to sell at a profitable price.
Slowly the profits are being eaten up while we comply and grow with Amazon. There is room for 3 to make money, however all 3 need to practice fair trading to protect each other.
Unfortunately this is not happening. Staying diligent and loyal is getting harder and harder.
Seller_KEFk8ucPv8VdM
thank you for all your clear information.
