Amazons 2019 FEE CHANGES (full breakdown)

What is going on Amazon sellers or hopefully soon it to be Amazon sellers, my name is beau Crabill and in todays video. I wanted to go over about the recent fee changes with selling on Amazon in 2019 Now every single year Amazon changes and updates their fees usually people always complain about them because they’re raising the fees so much But it usually has to do with inflation and the post office changing their rates However, in 2018 Amazon did make an interesting change to their storage fee rates and all kind of discuss some of that throughout this video but one thing actually let you know is that actually this year Amazon was pretty Remain in kind of boring with their changes. They didn’t really make a lot of changes to their fees However, let me explain to you on the three ways Amazon charges fees that are most important for selling on Amazon the first thing is going to be off referral fees that’s going to be a commission that Amazon takes which Typically ranges between 8 to 15 percent then they also take fulfillment fees fulfillment fees is pretty much the shipping fee that they have to ship to the customer and Then they also take storage fees. If you don’t sell your products within 30 days and they’re sitting in Amazon’s place So now I’m going to talk to you about the changes for 2019 with those three types of fees So what I want to go into right now is the fulfillment fees now Amazon Fulfillment fees are overall I would say very very cheap I will explain to you how they’re so cheap on the especially when you’re selling products are over a couple pounds but overall the remaining kind of the same and going up by a few cents and the reason why Amazon changes their fulfillment fees the Shipping fees is simply because the UPS FEDEX USPS changes their rate so they have to remain with it. However, you can see from 10 ounces or less still the same two dollars 41 cents for 10 to 16 ounces. It goes up seven cents from 10 ounces above for large. So the same 10 to 16 ounces it goes up to 328 One pounds to two pounds goes up looks like five cents two to three pounds. It goes up to $5.26 cents from 509 and then you can see here from 3 to 20 pounds They’re just kind of going up by anywhere between 10 cents to a quarter For each type of there and you can actually see for a lot of events staying the same and not really changing a lot However, some of this stuff can add up especially if you’re selling thousands a thousand units per month. However Over all the fees for heavy items on Amazon talking about products over 5 pounds It’s still so dang cheap. If you actually look here where it says 3 to 20 pounds It’s a flat five dollar nine cent fee plus thirty eight cents per pound over the first three pounds So I know when I shipped out a lot of consoles on Amazon like PlayStation consoles Nintendo Microsoft consoles its cost me around eight to nine dollars to get them shipped to my customer two days prime delivery if You try to go do that yourself on UPS or FedEx or USPS? Probably cost you like thirty five bucks So overall Amazon’s fulfillment fees really make the overall fee for the product depends on the product You’re selling really cheap. Now if you’re selling low ticket really cheap items well then yeah that can really add up because it could be two dollars and forty eight cents for every time you ship out a product, which is actually still overall cheaper than What to call it you doing yourself on USPS? So now let me talk about storage fees. So over all the storage fees remained Unchanged for someone on Amazon in 2019 but the one thing that was the biggest change was they eliminated the storage fees of the Long term storage fees for products that have been in Amazon’s warehouse for 181 days. So about six months to a year They eliminated that fee which used to be overall pretty big enough the biggest change they had in 2018 They eliminated that but however the long-term storage fee still exists if your products been in Amazon’s warehouse for over 365 days So now I’m going to talk about the referral fee now the referral fee is overall the most important I Would say fee for it because it makes up the highest percentage Now if you’re someone low ticket items then yeah it could your fulfill me could be higher but overall let me explain to these fees that are lowering so Furniture baby beauty and personal care will be lowered Amazon did not say the exact Percentage amount will be lowered to but they will be lowered now do keep in mind all of these Rates are being put in place in February February 15th for the storage fee rates that are changing and then also February 19th 2019 for the fulfillment and the referral fees however shoes handbags and sunglasses are going up to 18% from 15% and Clothing accessories is going up to 17% from 15% So those are the couple categories that are changing and then also Amazon is stating that they are lowering the per item fee For all or most products now they were pretty generic on this But I’m assuming they are talking about the fee that if you are selling as an individual seller on Amazon Or the variable closing fee Which they will this later disclose that later for about 2019 and then the jewelry category is going down to 5% from it was 15 20 % for Jewelry price below $250, but overall that is it for the Amazon fee changes So a lot of it didn’t really change a lot. There was some lowering in the categories such as a beauty personal care and furniture Clothing and accessories kind of went up but the storage fees I think the biggest win with this I think the storage fees for the long term for a hundred eighty one days to 365 were eliminated um that can really add up and also one thing I actually forgot to mention about storage fees is they actually lowered the Minimum storage fee rate for long-term storage to 15 cents from 50 cents but overall, I mean when selling on Amazon they’re gonna take fees right and usually fees are definitely Corresponding to supply and demand what I mean by that is if the fees go skyrocketing well sellers who know what they’re doing They’re still gonna be in business and make a profit. So if Amazon changes their fees sellers that know what they’re doing They’re probably going to raise their prices a little bit. It’s all gonna be kind of corresponding to that So that’s all I have to say for this video If you have any questions at all about sound on Amazon or the fees Feel free to comment down below make sure subscribe to this YouTube channel and have a great day


Add a Comment

Your email address will not be published. Required fields are marked *