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Home » Amazon raises FBA sellers fee, blaming inflation

Amazon raises FBA sellers fee, blaming inflation

FBA sellers

Every item sold by third-party FBA sellers will result in Amazon receiving an additional 35 cents from the seller.

Reports say that Amazon is the latest business to increase prices in response to inflation and increased costs.

Plans to raise costs for sellers using Amazon’s Fulfillment by Amazon (FBA) service during the holiday shopping season will have an impact on millions of businesses.

Any item chosen, packaged, and sent by FBA in the United States or Canada from October 15, 2022, through January 14, 2023, will cost the seller an additional $0.35.

Amazon increases fees

This temporary tax does not replace the existing costs, which vary by size, category, and weight, according to CNBC, adding to the challenges small businesses confront during a challenging time of year.

An email to FBA merchants says “expenses are rising.”

“Our selling partners are essential to us, and we didn’t make this decision lightly,” it says.

Third-party seller revenue increased 13% year-over-year to $27.4 billion in Q2 from commission, fulfilment, and shipping fees.

Amazon has raised fees before due to the pandemic and Russia-Ukraine war.

With UPS, FedEx, and the USPS hinting at holiday season pricing hikes, Amazon’s profit margins are feeling the pinch.

CEO Andy Jassy told CNBC earlier this year, “You can’t keep absorbing all those expenditures and operate a profitable business.”

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