Amazon delivery fees have increased again! Sellers are complaining

In response to continued soaring inflation, Amazon recently plans to increase delivery fees during the holiday season and pass some of the increased costs on to the millions of third-party sellers selling products on the platform .

On August 16, Eastern Time , Amazon sent an email to many third-party sellers announcing changes to delivery fees. The specific content is : from October 15 to January 14, third-party sellers using Amazon Logistics ( FBA ) must pay $ 0.35 for each item sold in the United States or Canada .

It is reported that this fee is additional, that is, the seller's existing fees for using FBA services are added in addition , and the specific fees vary depending on the size, category and weight of the item.

Amazon said that as operating costs and other expenses reached new highs, it became more difficult for the company to absorb other costs associated with the peak shopping season , so it decided to " charge holiday sales peak season delivery fees during a specific period of time each year, just like other carriers . "

In response to this, many Amazon sellers joked that it was "a very difficult decision ". Some sellers complained bitterly, saying that the storage fees were already very high and the delivery fees had to be increased . Some sellers even gave up certain products that had already low profits because of the increasing delivery fees .

According to Amazon's financial reports for several consecutive quarters, third-party sellers have gradually become the dominant core of Amazon's e-commerce business . According to the second quarter financial report this year, this group accounted for more than half ( 57% ) of Amazon's online retail sales .

Because of Amazon's global reach and massive user base, many third-party retailers rely on the company for much or all of their business.

At the same time, Amazon also makes huge profits from the services it provides to third-party sellers. In the second quarter, Amazon's total e-commerce revenue fell 4% , but revenue from third-party seller services increased 13% year -on- year to $27.4 billion. These revenues include commissions, delivery fees, shipping costs and other fees .

Due to inflation, supply chain constraints and the Russia-Ukraine conflict, Amazon 's cost expenditure has increased significantly this year . In order to pass on these costs, Amazon also announced an increase in delivery fees earlier this year.

In April this year , Amazon announced that it would impose an average 5% FBA delivery surcharge on sellers in the United States from April 28 to cope with rising costs caused by fuel and inflation . Amazon said that this surcharge is not permanent and is a mechanism widely used among suppliers.

In fact, it's not just Amazon. Major US logistics operators such as UPS and FedEx usually announce surcharges during the holiday shopping season .

It is understood that as early as last week, USPS (United States Postal Service) issued a notice of temporary price adjustments for the 2022 holiday peak season.

USPS stated in the announcement that if reviewed by the PRC, the temporary rates will take effect on October 2 and will last until January 22, 2023. The specific increase in fees will depend on the weight of the package and the delivery distance .

With the arrival of the holiday season, the number of parcels has surged , and many logistics operators have said that in order to reduce operating cost pressure and ensure parcel delivery efficiency , they have to adjust temporary rates . As a result, the profit margins of sellers have been severely squeezed.

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