Amazon fee changes - your thoughts?

ArbitrageAndy

8 months ago

Did anyone else see the latest fee announcements? Looks like they're adjusting referral fees in a few categories and the FBA fulfillment fees are going up again.

I did the math for my products:
- My average product will cost about $0.35 more to fulfill
- Storage fees in Q4 are looking scary

I'm honestly considering:
1. Raising prices slightly across the board
2. Switching some slower-moving products to FBM
3. Finding ways to reduce packaging size/weight

How are you all handling these changes? Anyone switching to alternative fulfillment?

2 replies

Replies (2)

FBAWarehouseKev·8 months ago

Im definitely raising prices. Did the math and I need about a 3-4% increase across my catalog to maintain margins. Most customers wont notice that small of a change. The alternative is eating into already thin margins which isnt sustainable.

PrivateLabelSara·8 months ago

For slower movers, definitely consider switching to FBM or removing them entirely. Storage fees during Q4 will eat any profit. I use a simple rule: if it hasnt sold in 60 days and has less than 10% margin, its time to liquidate or remove.