Amazon is raising seller fees blames inflation TechRadar

Amazon is raising seller fees blames inflation TechRadar

Amazon is raising seller fees blames inflation TechRadar Skip to main content TechRadar is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here's why you can trust us. Amazon is raising seller fees blames inflation By Craig Hale published 17 August 2022 Third-party FBA sellers will pay Amazon an additional 35 cents for every item sold (Image credit: Sundry Photography / Shutterstock) Audio player loading… Amazon has become the latest company to reportedly raising its fees in order to contend with rising costs and global inflation. The plans to increase Fulfillment by Amazon (FBA) seller fees during the holiday season, this is a move that will affect millions of traders who rely on the ecommerce giant to extend the reach of their brands to worldwide audiences. For the three-month period spanning October 15, 2022 through January 14, 2023, third-party sellers will pay a hefty $0.35 fee for every item picked, packed, and shipped by FBA in the US and Canada. Amazon fee rises According to CNBC (opens in new tab), this temporary fee does not replace the existing costs, which vary by the size, category, and weight of items, further adding to the pressures that small businesses face during a particularly challenging period of the year. An extract from an email sent to FBA merchants notes the decision comes as "expenses are reaching new heights." "Our selling partners are incredibly important to us, and this is not a decision we made lightly," it adds.Read more> Prepare for the future with the best ecommerce hosting providers (opens in new tab) > Shopify now finally lets ecommerce site owners sell products on YouTube (opens in new tab) > Bad news: Amazon Prime is going up in price, with no new benefits Third-party sellers are a huge part of Amazon's operations, with related revenue from streams like commission, fulfillment, and shipping fees up 13% year-on-year in Q2, to the sum of $27.4 billion. This isn't the first time Amazon has raised its fees, with the pandemic surge and the Russia-Ukraine war being just two of the factors to blame. With other companies like UPS, FedEx, and the US Postal Service all hinting at holiday season price hikes, much like those of third-party merchants, Amazon's own profit margins are feeling the strain. In an interview with CNBC earlier this year, CEO Andy Jassy explained that "at a certain point, you can't keep absorbing all those costs and run a business that's economic."These are the best payment gateways and merchant services for your business Craig Hale With several years' experience freelancing in tech and automotive circles, Craig's specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the electrification of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value! See more Computing news Are you a pro? Subscribe to our newsletter Sign up to theTechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Thank you for signing up to TechRadar. You will receive a verification email shortly. There was a problem. Please refresh the page and try again. MOST POPULARMOST SHARED1RTX 4090 too expensive? Nvidia resurrects another old favorite2Blizzard made me explain Overwatch 2 smurfing to my mum for nothing3Apple October launches: the new devices we might see this month4Google's AI editing tricks are making Photoshop irrelevant for most people5Nvidia RTX 4090 Ti reportedly canned due to sky-high power consumption1Best laptops for designers and coders 2The iPhone 14 Pro is made of the wrong stuff; the Pixel 7 proves that to me3Stop saying Mario doesn't have an accent in The Super Mario Bros. Movie4iPhone 15 tipped to come with an upgraded 5G chip5Google Pixel Tablet is what Apple should've done ages ago Technology Magazines (opens in new tab)● (opens in new tab)The best tech tutorials and in-depth reviewsFrom$12.99 (opens in new tab)View (opens in new tab)
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