New placement fee will kill all of Small and Light items even with optimization split
I sell a lot of small and light items, profiting as low as 50 cents per items to a dollar for some. The items that are less than 10 dollars but between 6 and 8 dollars especially will suffer. Even if I do amazon optimization split with no placement fee, I will still suffer and make no profit. Because i am sending to 5 different warehouses across the country and my shipping fees more than doubled. My business model is all small and light making tiny profit per item. 52 cents per unit might not hurt a lot of people but thats a lot of money for someone selling items that are 6 or 7 dollars. I feel like amazon didn't think about this. How are we suppose to profit in any small and light items now??? the shipping cost per unit is what i am profiting in some items now!! this really hurts my business. I wonder if anyone else on here that sells small and light and if they have insight on it what they are planning on doing
New placement fee will kill all of Small and Light items even with optimization split
I sell a lot of small and light items, profiting as low as 50 cents per items to a dollar for some. The items that are less than 10 dollars but between 6 and 8 dollars especially will suffer. Even if I do amazon optimization split with no placement fee, I will still suffer and make no profit. Because i am sending to 5 different warehouses across the country and my shipping fees more than doubled. My business model is all small and light making tiny profit per item. 52 cents per unit might not hurt a lot of people but thats a lot of money for someone selling items that are 6 or 7 dollars. I feel like amazon didn't think about this. How are we suppose to profit in any small and light items now??? the shipping cost per unit is what i am profiting in some items now!! this really hurts my business. I wonder if anyone else on here that sells small and light and if they have insight on it what they are planning on doing
4 replies
Seller_1IE6Eic6kKJE2
We are in similar situation. Just learned about this today. all of our product SKU's are 2.7 to 8 oz in weight. We just shipped a box of 100 units of a 2.7 oz $12 product and shipping went from $4 to $6 Plus the added $21 placement fee. Amazon has been our lowest margin channel for several years but now it's becoming almost impossible. We have decided to take one SKU completely out of Amazon going forward. 10 years we have been growing but past 2 years almost impossible. I have no solution.
Dominic_Amazon
Hi @Seller_wEvxmzpjwJYbA,
Dominic from Amazon here, we are always open to seller feedback.
You are able to choose Amazon split shipments if you qualify and avoid the fee entirely.
Additionally one thing to note:
- On average, we will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit. These fees will apply starting April 15, 2024, the same date that the first inbound placement fees will begin to be charged. Products priced below $10 will continue to have an additional $0.77 discount on per-unit fees. Go to the FBA fulfillment fee rates page for more details.
Please let me know if you have any additional questions.
Dominic
