💡 Amazon's New Reimbursement Policy: Reimbursements Based on COGS Instead of Sales Price Amazon recently announced a shift in its reimbursement policy, moving from sales price to COGS (Cost of Goods Sold). This change has sparked questions for sellers: • Why should merchants—already competing with Amazon—disclose their COGS? Will they also have to reveal supplier details? • What about the numerous fees sellers already pay? ➡️ Shipping fees ➡️ Handling fees ➡️ Low and high inventory fees ➡️ Storage fees Will these fees be considered in the new reimbursement model? For sellers, this change adds another layer of complexity to an already challenging ecosystem. Transparency and fairness are more important than ever as policies evolve. #amazon #FBA #Amazonfees #SellingonAmazon
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Amazon hits pause on controversial seller fee rollout that had caused a revolt. As announced in December 2023, the FBA low-inventory-level fee will go into effect on April 1, 2024. How it will work ❓ Starting April 1, the transition period will begin. You will still be charged the fee on eligible products shipped with historical days of supply below 28 days. Then, we will credit back any charged low-inventory-level fees for units shipped between April 1 and April 30. You can expect to see this credit in May. Starting May 1, the fee will be charged without a credit back. You can avoid the fee by ensuring that either the long-term historical days of supply (last 90 days) or short-term historical days of supply (last 30 days) are above 28 days (4 weeks). April will give you an opportunity to understand if your current inventory management actions will effectively avoid the fee, or if there are adjustments you can make to avoid this fee so you're prepared going forward. Learn more 👉 https://lnkd.in/e3i5Bkry?
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TOP AMAZON NEWS: Amazon to Delay New Controversial Seller Fees Until May Amazon has decided to postpone its newly introduced “low-inventory-level” fee until May after receiving backlash from third-party sellers utilizing its Fulfillment by Amazon (FBA) service. Initially set to charge sellers for low inventory levels relative to sales, Amazon will now credit sellers for any fees incurred during April, allowing them to assess the fee’s impact on their operations without immediate financial strain. The fee aims to ensure adequate inventory levels for efficient distribution and faster shipping but has faced criticism for potentially penalizing sellers also charged for excess inventory. Despite generating significant revenue through seller fees, Amazon’s recent policy changes have sparked seller concerns and attention from the Federal Trade Commission. #AmazonSellerSchool #AmazonNews #AmazonFees
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TOP AMAZON NEWS: Amazon to Delay New Controversial Seller Fees Until May Amazon has decided to postpone its newly introduced “low-inventory-level” fee until May after receiving backlash from third-party sellers utilizing its Fulfillment by Amazon (FBA) service. Initially set to charge sellers for low inventory levels relative to sales, Amazon will now credit sellers for any fees incurred during April, allowing them to assess the fee’s impact on their operations without immediate financial strain. The fee aims to ensure adequate inventory levels for efficient distribution and faster shipping but has faced criticism for potentially penalizing sellers also charged for excess inventory. Despite generating significant revenue through seller fees, Amazon’s recent policy changes have sparked seller concerns and attention from the Federal Trade Commission. #copy #AmazonSellerSchool #AmazonNews #AmazonFees
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*Accuracy of Profitability Analysis* As Amazon is evolving further with so many new service charges etc, you must make a conscious effort to work out close to reality margins before making business decisions. Things to note following new charges as Amazon rolled out recently: 1. Inventory placement fees 2. Low Inventory level fees Besides above, Return rate too! If your product category has 3% return rate, you should at least consider same. I am sure, you are also calculating supplier cost, freight cost, inbound shipping to Amazon, handling costs as well. The lack of accuracy or laziness of calculating correct margins have literally led to a disaster for many many launches! Be careful! Cheers, #copiedfromMaqsoodAhmed #amazon #amazonfb
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✓𝐂𝐫𝐚𝐳𝐲 𝐔𝐩𝐝𝐚𝐭𝐞𝐝 𝟐𝟎𝟐𝟒 𝐀𝐦𝐚𝐳𝐨𝐧 𝐒𝐡𝐢𝐩𝐦𝐞𝐧𝐭 𝐟𝐞𝐞𝐬, "𝗧𝗵𝗮𝘁'𝘀 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗻𝗲𝘄 𝗶𝗺𝗽𝗼𝘀𝗲𝗱 𝗼𝗻 𝘁𝗵𝗲 𝘀𝗲𝗹𝗹𝗲𝗿𝘀" Amazon's directly hit's sellers' profitability with new inventory placement fees! Amazon's (FBA) pricing system has been altered once more, which is putting a strain on many sellers' finances. 💥A big problem these days is fulfilment fees because shipping has gone up by around 500%. Literally the upfront inventory placement fees are unavoidable and quickly eat into margins, Even for every Amazon seller. Choose Amazon optimized shipment splits to avoid the inbound placement service. #Amazonshipment
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✓𝐂𝐫𝐚𝐳𝐲 𝐔𝐩𝐝𝐚𝐭𝐞𝐝 𝟐𝟎𝟐𝟒 𝐀𝐦𝐚𝐳𝐨𝐧 𝐒𝐡𝐢𝐩𝐦𝐞𝐧𝐭 𝐟𝐞𝐞𝐬, "𝗧𝗵𝗮𝘁'𝘀 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗻𝗲𝘄 𝗶𝗺𝗽𝗼𝘀𝗲𝗱 𝗼𝗻 𝘁𝗵𝗲 𝘀𝗲𝗹𝗹𝗲𝗿𝘀" Amazon's directly hit's sellers' profitability with new inventory placement fees! Amazon's (FBA) pricing system has been altered once more, which is putting a strain on many sellers' finances. 💥A big problem these days is fulfilment fees because shipping has gone up by around 500%. Literally the upfront inventory placement fees are unavoidable and quickly eat into margins, Even for every Amazon seller. #Amazonupdates
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Everything you need to know about the new Amazon fees broken down in a video from Ridgeline's Supply Chain Manager. Link: https://lnkd.in/ghfB686T #fees #amazonfba #amazonagency #supplychain #logistics
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🚨 New Amazon Reimbursement Policy: A Major Blow to Sellers 🚨 Amazon has just dropped a new policy update that’s raising eyebrows and frustrations in the seller community. Starting March 10, 2025, they’ll only reimburse lost or damaged FBA inventory based on manufacturing costs, not retail value. Here’s the catch: 👉 Amazon will decide what’s “fair” for your manufacturing cost reimbursement, and their internal evaluation or AI models will drive these decisions. 👉 Even if you submit your costs, they have the power to reject them and go with their own numbers. This isn’t just about smaller reimbursements. It’s about the ripple effect: Sellers lose the ability to reinvest tied-up capital. Months of delays to reorder inventory leave sellers out of stock. Penalties for low inventory levels caused by Amazon’s own mistakes add insult to injury. We work hard to grow our businesses, and policies like this make it feel like sellers are being pushed to the brink. This isn’t transparency—it’s shifting more risk to sellers while Amazon tightens its grip. What’s your take on this? How do you plan to adapt to yet another challenge? #AmazonSeller #Ecommerce #AmazonFBA
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Amazon is rolling out a significant change to its lost warehouse reimbursement policy, reducing the timeframe by a staggering 90%. 📜 Previously you had 18 months to look back and file claims. ⏳ Now you will have just 60 days to do the same. While Amazon aims to streamline its automatic reimbursement system, this shift demands swift action from sellers. You'll need to be on top of your audits and file claims much faster. 📅 Mark Your Calendar: The new deadline kicks in on October 23. Don't let this catch you off guard. Spread the word and make sure you’re ready for this change! #AmazonSellers #Ecommerce #AmazonFBA #Virtualassistant #Amazon
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✓𝐂𝐫𝐚𝐳𝐲 𝐔𝐩𝐝𝐚𝐭𝐞𝐝 𝟐𝟎𝟐𝟒 𝐀𝐦𝐚𝐳𝐨𝐧 𝐒𝐡𝐢𝐩𝐦𝐞𝐧𝐭 𝐟𝐞𝐞𝐬, "𝗧𝗵𝗮𝘁'𝘀 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗻𝗲𝘄 𝗶𝗺𝗽𝗼𝘀𝗲𝗱 𝗼𝗻 𝘁𝗵𝗲 𝘀𝗲𝗹𝗹𝗲𝗿𝘀" Amazon's directly hit's sellers' profitability with new inventory placement fees! Amazon's (FBA) pricing system has been altered once more, which is putting a strain on many sellers' finances. 💥A big problem these days is fulfilment fees because shipping has gone up by around 500%. Literally the upfront inventory placement fees are unavoidable and quickly eat into margins, Even for every Amazon seller. #Amazonupdates
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