Amazon Seller Fees Explained [2022 Complete Guide]


Referral Fees

On Amazon, referral comes with a finder’s fee, which makes up the bulk of your seller fees. The fee estimate is displayed when you list a product on Amazon.

But you’ll ultimately be charged based on your selling price, not your listing price, so factor that in when you tweak your prices.

Depending on the venue and category, you’re charged anywhere from 8% to 45% of the total sale price, minus taxes calculated through Amazon’s Tax Calculation Service.

But then there’s the minimum referral fee (usually $0.3). Amazon might charge this instead.

How do you know what Amazon will charge? It’s always the higher of the two.

So, if you sell a stationery item for less than $2, (15% of which is $0.3), Amazon will still charge you $0.3, the minimum referral fee for office products.

Most sellers give Amazon a percentage cut of the item price, shipping charge, and gift-wrapping cost, as soon as they make a sale. But this year, some referral rates are different.

It costs more to sell PCs and entertainment collectibles, but less to sell full-size appliances, shoes, and handbags.





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How to Survive the 2022 Returns Season on Amazon


How Can Sellers Deal with Amazon Holiday Returns?

Optoro claims that 97% of customers are more likely to buy again if their returns experience is positive.

By contrast, 42% don’t shop again if it’s negative.

And if they happen to be first-time buyers, then that figure goes up to 80%.

So, if you sell on Amazon, don’t hesitate to use whatever resources you have to make the returns experience a positive one for your buyers.

But what if you don’t have your own brand, website, brick-and-mortar store, or reverse logistics department? Here’s what you can do:

1. See Returns as an Opportunity

Savvy sellers view returns as opportunities. It helps them identify issues with their products, listings, and business models.

But they also view a return as a chance to upsell.

And if they can’t convert returnees, at least they can make a positive impression on them.

Instead of equating a return with a loss, sellers can rewire this negative thought. Since almost all happy returnees come back, then that means Returnees = Return buyers.

So, whether they’re first-time buyers or serial returners, you want them all to be happy with their returns.

2. Be Cautious but Flexible

  • Put the ‘ace’ in ‘replacement’ and offer free item exchange for your MFN products.
  • Note that FBA items already come with free replacement options.
  • Note: the maximum amount Amazon will ever reimburse you if it loses or damages your item is $5,000.
  • Join the Free Returns program to display the corresponding badge for items that are not expensive or prone to counterfeiting.
  • Just make sure to compare services like the UPS Store 360 Returns Program and budget for them.
  • Sign up for the Prepaid Returns Label program to offer Refund at First Scan options, but only for inexpensive items and those that are not prone to counterfeiting and fraud.
  • Provide easy access to fit and sizing information on your listing and storefront, and ask Seller Support for help if you’re having trouble with variations. Add brand-specific size charts or upload sizes using the Apparel Size Standardization Guide, if you sell clothes.
  • If you accept returns in person (e.g., to your store or warehouse), train staff to attend to returnees, display similar products, upsell, and offer them alternatives. If you haven’t yet, consider creating a temporary reverse logistic hub with staff on call for physical returns.
  • Direct resources towards a reverse logistics effort, assign in-house return officers, and invest in AI-powered returns processing software.
  • Be lenient with customers and go the extra mile. Set up a temporary customer service team to handle the uptick in return requests or outsource to companies with high-tech tools, such as machine learning bots and menus with interactive voice response (IVR).
  • Freshen up on return, replacement, and refund rules on Amazon. Also note the extended return policy gives buyers 30 days to return, but baby items and anything on the Amazon Holiday Gift List gets 90 days, while Baby Registry gifts get 1 year.





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How to Prepare for Black Friday on Amazon and the 2021 Amazon Q4 Sales


How Will BFCM 2021 Be Different for Amazon Sellers?

Last year was tough for sellers because buyers started shopping early- just days after Prime Day. And they spread their spending across several weeks.

But it’s likely to be worse this year. That’s because global supply chain disruptions will compound the dreaded ‘FOMO’ effect.

So, Amazon sellers who thought they still have about a month to prepare for Black Friday may be in for a shock.

They need to factor in delivery delays, rerouted shipments, and port congestion.

Then there’s the rising cost of containers too, especially via UK importers, claims the Institute of Export.

At this rate, it should come as no surprise if inventory meant for the holiday season ends up being listed in 2022.

Also, don’t underestimate the knock-on effect of labor shortages across the world. Take for instance the UK. Its labor market was badly hit by COVID-19 and Brexit.

It’s short 100,000 truck drivers, 230,000 builders, and 500,000 manufacturing workers. Trying to persuade retirees, career shifters, and people fired in the pandemic isn’t working. And as for EU workers driven away by Brexit, a return is out of the question. According to FT, the turmoil will last another 2 years.

Also, Amazon itself is changing. It just launched the Amazon Holiday Gift List feature.

It’s basically a gift registry for every household member.

Any orders off this list will benefit from the 90-day holiday return offer.

But the list might include BFCM deals.

So, you could get BFCM returns until March 2022, aside from Xmas returns!





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Amazon Seller News X 2021


Deadline for FBA Holiday Shipments

Amazon published the FBA Holiday Selling Dates page for US sellers. 

It wants US shipments for BFCM to arrive at their fulfilment centers by Mon, Nov. 15

Likewise, shipments for Christmas sales should be in by Sat, Dec. 11, so two weeks before Xmas.

To recap, early BFCM deals start on Nov. 8 and last for 2 weeks.

Then, Black Friday Week lasts from Nov. 22 to Nov. 29.

It’s followed by Cyber Monday Week, which ends on Dec. 5.

But Black Friday, per se, will be a 2-day event taking place on Nov. 25 and 26.





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Why Use an Amazon Repricing Software this Q4?


  • Cleverly Adjusts Prices 24/7

This Q4 is very different. There are stock shortages, FOMO, Amazon’s holiday gift list, and the new in-app universal gifting tool.

In fact, BFCM 2021 sales are already picking up, with plenty of orders throughout the day. So, it’s important to rely on an automatic repricer that can adjust prices intelligently when you need it most. 

There you have it folks; we’ve just shared some of BBB’s best-kept secrets. If you’d like to know more about this innovative Amazon repricing software, and you’d like to try your hand at using Buy Box Buddy, be sure to subscribe for news and pre-release offers from the BBB team.





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How to Optimize Your Amazon Listings This Q4


1. What Amazon Shows and What Buyers See

People come to Amazon to buy and research.

So, Amazon’s search algorithm is all about conversion and sales velocity.

But sales are tied to placement on a search results page. After all, most people buy from page 1, and out of these, they tend to buy the first few items displayed.

That’s why the A10 algorithm ranks its search results based on keyword relevancy, conversion rate, customer satisfaction, and retention.

This is a clear departure from the A9 M.O.: ranking keywords based on the order of appearance (title first, back-end second, bullet points third, etc.).





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What Are Amazon Brand Aggregators and Why They Matter


What Happens After the Sale?

Amazon brand aggregators get to work right away and turn the business around. They start with listing optimization, focusing on keywords and SEO. Then they turn to branding (images, presentation, packaging, etc.)

They look at ad spend. They adjust PPC campaigns. And they look into using various programs (e.g., Small & Light, Launch Pad). They turn their attention to pricing, logistics, and acquisition marketing through Google SEO. They also diversify sales channels and set up affiliate sites.

Some Amazon aggregators insist on drafting non-compete agreements. They could be for specific categories or niches. These will be off limits for as long as they demand. And some offer previous owners the option to stay on with the company in an advisory role.

That’s about it on the topic of Amazon aggregators. But the takeaway here should be that Amazon seller aggregators are growing fast; too fast. This brings on an entirely new set of challenges for Amazon sellers.

But the tables may turn. Unless they join forces, some of these Amazon brand aggregators may find that they’re too big for their britches. Marketplacepulse says it best in an article titled “25 Amazon Aggregators Raised at Least $100m”.





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How to Prep Your Amazon Business for an Exit with Amazon Business Aggregators


Mobile Optimization

Statista claims that last year, 3 out of 5 Amazon shoppers prefered to order on the desktop site.

Only 1 in 6 used the mobile site most, and just 1 in 7 used the Amazon app instead.

But PPC Entourage helps paint a clearer picture. It turns out most buyers shop on a desktop, but 80% of them start browsing for products on mobile devices first.

Bearing that percentage in mind, it’s probably a good idea to optimize all your listings for mobile traffic. Since your titles and images are the only ones that stay ‘above the fold’ as you scroll on a mobile, it’s these aspects you should focus on, especially if you’re also investing in campaigns.





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Amazon Seller News XI 2021


CSBA Rewards

As mentioned in last month’s edition of the Digest, Amazon launched Customer Service by Amazon (CSBA), a free or discounted customer support service for self-fulfilled orders.

To be eligible, sellers must maintain a VTR of 95% and a pre-paid return label (APRL) rate of 95% at least.

The monthly CSBA fee rate is charged based on the number of self-fulfilled units shipped in the past 3 months and the queries they generated, aka the Contact per Unit (CPU) rate.

This CPU is shared with sellers at the beginning of each month. The rate card is as follows:

  • $0.1/self-fulfilled shippied unit if the CPU is 5% or less, so if Amazon gets fewer than 50 queries for every 1,000 orders the seller shipped over the previous 3 months.
  • $0.25/self-fulfilled shipped unit if the CPU is 5%-15%.
  • $0.5/self-fulfilled shipped unit if the CPU is 15%-30%.
  • $0.7/self-fulfilled shipped unit for a CPU of more than 30%.
    $0.25/self-fulfilled shipped unit if the CPU is unknown or unreliable.

For a limited time, Amazon announced that sellers who also maintain a Contact per Unit (CPU) rate of 5% or less every month will qualify for free CSBA.

Those who don’t will get a discount of 15%-50%, depending on their CPU tier.





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What You Should Know About Amazon Repricing Analytics


With winter holidays drawing near, now is the time to rethink your Amazon repricing strategy so that you can boost your sales and profits on Amazon. After all, for third-party sellers, successful business strategies start with a solid Amazon pricing strategy.

But how do you go about it?

Do you need clunky Amazon software tools, high-tech equipment, and an obscene campaign budget?

Not at all.

In our experience, it’s just a matter of looking closely at the competition and how well your inventory is performing and adjusting accordingly.

In this post, we’ll focus on inventory analysis.

More specifically, we’ll show you how to monitor your inventory performance, what to look out for, and how to use that intel to tweak prices and bring in more business this holiday season.

Why focus on your Amazon inventory analytics?

For one thing, that information is just sitting there, ripe for the taking, and you’re the only person with access to it. No other seller knows what your stock levels are, what your sales velocity is, or what items you have trouble selling.

Then there’s also the fact that inventory analysis is something many sellers simply don’t trouble themselves with.

They’re often so busy selling more of a hot item, that they don’t even see the opportunities they’re missing. And that puts you at an advantage.

So, what’s so special about your Amazon inventory? What secrets does it hide? This is where Buy Box Buddy, our new automatic repricer comes in.

It features a whole suite of inventory analytics. As for how they can inform your repricing and overall Amazon strategy, we’re happy to show you.





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24 Amazon Seller Conferences to Attend in 2022


  • eCommerce Berlin (Trade Show)

Where. Luckenwalder Str. 4-6, Berlin.
When. May 5, 2022.
Ticket. Free, via online form.
Website. eCommerce Berlin
Speakers/Panelists. Sky, ODOSCOPE, Henkel, Claneo, WEBSALE, myToys, etc.
Attendees. 8,000 online retailers, tech companies, C-level staff.

 

  • Amazoni Aastakonverents 2022 (Conference)

Where. Tallinn, Estonia.
When. June 4, 2022.
Ticket. €149 (excl. VAT)
Website. Amazoni Aastakonverents 2022
Speakers/Panelists. KPMG, SellerX, Uncapped, Seller Sessions, etc.
Attendees. <1,000 Amazon merchants, including PL sellers and vendors, as well as marketers.

 

  • E-Wolucja 2022 Sales Abroad (Conference)

Where. Wroclaw, Wroclaw Congress Center, Poland.
When. Sep. 9, 2022.
Ticket. 299 zloty ($73) standard, 299 zloty ($122) advanced.
Website. E-Wolucja 2022 Sales Abroad
Speakers/Panelists. 20 speakers TBC.
Attendees. <1,000 Amazon merchants, logistics, and marketing managers.

 

Where. Munich, Germany.
When. Sep. 27-28, 2022.
Ticket.
Website. AmazonWorld Conference
Speakers/Panelists. TBC
Attendees. 20,000 Amazon sellers and vendors.

 

  • White Label World Expo Europe

Where. Messe, Frankfurt, Germany.
When. Oct. 12-13, 2022.
Ticket. Free tickets available.
Website. White Label World Expo Europe
Speakers/Panelists. Thrasio, Perch, SellerX, eBay, SynBiotic, Amazon FBA, RevStep etc.
Attendees. 10,000 Amazon sellers, retailers, white label and PL sellers, and aggregators.

 

  • ESHOW MADRID (Conference)

Where. Pabellón 6, IFEMA- Feria de Madrid, Madrid, Spain.
When. Oct. 26-27, 2022.
Ticket.
Website. ESHOW MADRID
Speakers. UPS, WOW Shop, Taxmen.eu, Huboo Technologies, Paynopain, FOREO, etc.
Attendees. 4,000 marketers and online retailers.

 

  • Savant eCommerce Barcelona (Conference)

Where. Barcelona, Spain.
When. Oct. 2022.
Ticket.
Website. Savant eCommerce Barcelona
Speakers/Panelists. Routinely, Parfois, FarFetch, Mars, Bayer, EMEA, PUMA, etc.
Attendees. <1,000 pure player and omni-channel retailers





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Amazon Seller News XII 2021


A-to-Z Claim Checks on Amazon UK

As of Dec. 1, 2021, Amazon automatically checks the validity of A-to-Z claims.

It does so using the tracking information provided by sellers when they confirm their orders. So, Amazon may issue refunds automatically, even if buyers don’t contact sellers. This can happen if:

  • Packages are refused on delivery.
  • The items are undeliverable.
  • Sellers have not shipped or confirmed dispatch. This affects ODR and Account Health.

When Amazon can’t verify the claims, buyers must contact sellers instead. If a claim is verified and granted automatically, sellers receive an email notification. They have 30 calendar days to file an appeal, and they must provide proof that the decision was faulty (e.g. proof of delivery).

Sellers who can provide a pick-up scan from before the ship-by date won’t pay for the refund and their ODR won’t be affected. The ODR will also not be affected if the tracking information points to carrier issues, such as damage or loss.

Sellers can request restocking fees through the appeal process.





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