I just realized that Amazon charges 17% referall fees on shipping charges...
I established a shipping cost for my own fulfilled products that is quite fair, merely covering my actual expenses. However, it was only recently that I became aware of Amazon's imposition of a 17% referral fee on shipping charges.
Isn't that exorbitant? I mean, how ridiculous is that? A 17% fee seems to imply that there is significant profit to be made from shipping costs. 17%, really? Do they really think we make a lot of money out of the shipping cost?
I just realized that Amazon charges 17% referall fees on shipping charges...
I established a shipping cost for my own fulfilled products that is quite fair, merely covering my actual expenses. However, it was only recently that I became aware of Amazon's imposition of a 17% referral fee on shipping charges.
Isn't that exorbitant? I mean, how ridiculous is that? A 17% fee seems to imply that there is significant profit to be made from shipping costs. 17%, really? Do they really think we make a lot of money out of the shipping cost?
7 replies
Seller_y7W9ccUlauftE
The amazon referral fee is based on "item price + shipping fee" paid by the Buyer -- amazon has no idea how much your product cost or how much you paid to ship.
Do you really think that Sellers who offer "free" shipping got it for free from somewhere ? It's part of the item price and that hidden shipping cost is covered by the referral fee.
Once upon a time, amazon had Sellers of penny books who sold the book for 1 cent and made all their profit off the shipping. Amazon decided to close that fee avoidance loophole years ago by charging a flat referral fee on both item price and shipping.
Seller_dotifYADa0BWY
Add 17% to the shipping cost and watch your email box for the "too high shipping cost" email from Amazon......
Seller_rV9pPNGDqQ9kP
Fee on shipping makes sense so as you charge the same price and pay the same fee whether you ship "free shipping" or ship price plus shipping. I also get customers asking for a shipping refund because they think it's too high. I explain I have to charge the same price across Canada per amazon rules. So while yes might cost me to ship less ot a major city in Ontario or Quebec, it costs me more than I charge to ship to rural BC or out east.
Seller_rV9pPNGDqQ9kP
What I find a bit of a cash grab however is amazon charging full fees of 15% on the tax paid by customers. That is ridiculous. Charging 15% to collect tax? I think that's where you 17% is coming from. To ontario your paying 15% plus x 1.13 for the 15% on the tax the customer had to pay. Plus you pay another 13% on the fee amazon just collected if you are in Ontario!
