According to Amazon's Q3 financial report this year , the performance of its e-commerce division was lower than Wall Street's expectations. The main factors leading to this result include : consumers returning to offline shopping as the epidemic improves , increased labor costs, and supply chain disruptions .
Although the huge profits of Amazon AWS services have reduced the losses of the giant to a certain extent , Amazon seems to have found other solutions to its e-commerce dilemma , that is, to increase FBA fees.
According to Morgan Stanley analyst Brian Nowak , Amazon 's latest fee structure changes for FBA could bring it an additional $1 billion in EBITDA.
FBA is a warehousing and logistics service provided by Amazon to platform sellers . Merchants deliver their products to Amazon fulfillment centers . When buyers make purchases, Amazon will be responsible for packaging and shipping the orders. After deducting the fees charged by Amazon FBA , the merchants receive the product revenue .
There is no doubt that Amazon's increase in FBA fees is bad news for platform sellers , but good news for its shareholders . It is reported that FBA fees have been maintained in the range of 2-3% before , but now they have been increased to 5.2%.
According to Nowak , FBA generated $45 billion in revenue for Amazon in 2021. If the platform 's business growth is 18% and the FBA fee rate is 2%-3% , FBA revenue is expected to reach $54 billion in 2022. However, the newly implemented 5.2 % fee rate will bring an additional $1 billion to $2 billion in revenue, of which $1 billion will flow directly to EBITDA.
In this regard, Nowak further pointed out that although the increase in Amazon FBA fees will not have a substantial impact alone , if this move is combined with other measures on the platform , it will provide Amazon with greater profitability.
At the same time, as the global epidemic gradually improves , the related cost increases and labor shortages will improve , which will in turn reduce Amazon's operating expenses. In addition , Amazon will continue to benefit from its economies of scale, and the subsequent increase in Prime membership prices will also bring it considerable revenue . policy FBA Amazon Platform |
<<: Meta promotes in-site shopping, will Chinese sellers gain new competitors?
>>: Due to repeated suspension of flights, shipping prices have risen again!
In the past two years, cross-border e-commerce co...
Caspian Finance and Taxation is a company that cr...
Madri Collection is a line of clothing for expecta...
Recently, Shopee released a trend data showing th...
At present, foreign media have announced the top ...
According to CNBC , JD.com is entering the Europe...
PaceJet is an innovative, cloud-based, global shi...
Synczon can help Amazon sellers calculate accurat...
For cross-border enterprises that have developed ...
AMTS-PREMIUM is an operational efficiency softwar...
Recently, the editor learned from the official Am...
Rio Tinto Dingsheng is headquartered in Warsaw, Po...
Not long ago, the China Business News and Shenzhe...
Yida International Logistics (Shanghai Yida Intern...
Reuters cited data from YipitData as saying that ...