What is going on Amazon sellers or hopefully soon it to be Amazon sellers, my name is beau
Crabill and in todays video. I wanted to go over about the recent fee changes with selling on Amazon in 2019
Now every single year Amazon changes and updates their fees usually people always complain about them because they're raising the fees so much
But it usually has to do with inflation and the post office changing their rates
However, in 2018 Amazon did make an interesting change to their storage fee rates and all kind of discuss some of that throughout this video
but one thing actually let you know is that actually this year Amazon was pretty
Remain in kind of boring with their changes. They didn't really make a lot of changes to their fees
However, let me explain to you on the three ways Amazon charges fees that are most important for selling on Amazon
the first thing is going to be off referral fees that's going to be a commission that Amazon takes which
Typically ranges between 8 to 15
percent then they also take fulfillment fees fulfillment fees is pretty much the shipping fee that they have to ship to the customer and
Then they also take storage fees. If you don't sell your products within 30 days and they're sitting in Amazon's place
So now I'm going to talk to you about the changes for 2019 with those three types of fees
So what I want to go into right now is the fulfillment fees now Amazon Fulfillment fees are overall
I would say very very cheap I will explain to you how they're so cheap on the especially when you're selling products are over a couple pounds
but overall the remaining kind of the same and going up by a few cents and the reason why Amazon changes their fulfillment fees the
Shipping fees is simply because the UPS
FEDEX USPS changes their rate so they have to remain with it. However, you can see from
10 ounces or less still the same two dollars 41 cents for 10 to 16 ounces. It goes up seven cents from
10 ounces above for large. So the same 10 to 16 ounces it goes up to 328
One pounds to two pounds goes up looks like five cents two to three pounds. It goes up to $5.26 cents from
509 and then you can see here from 3 to 20 pounds
They're just kind of going up by anywhere between 10 cents to a quarter
For each type of there and you can actually see for a lot of events staying the same and not really changing a lot
However, some of this stuff can add up especially if you're selling thousands a thousand units per month. However
Over all the fees for heavy items on Amazon talking about products over 5 pounds
It's still so dang cheap. If you actually look here where it says 3 to 20 pounds
It's a flat five dollar nine cent fee plus thirty eight cents per pound over the first three pounds
So I know when I shipped out a lot of consoles on Amazon like PlayStation consoles Nintendo
Microsoft consoles its cost me around eight to nine dollars to get them shipped to my customer two days prime delivery if
You try to go do that yourself on UPS or FedEx or USPS? Probably cost you like thirty five bucks
So overall Amazon's fulfillment fees really make the overall fee for the product depends on the product
You're selling really cheap. Now if you're selling low ticket really cheap items
well
then yeah that can really add up because
it could be two dollars and forty eight cents for every time you ship out a product, which is actually still overall cheaper than
What to call it you doing yourself on USPS?
So now let me talk about storage fees. So over all the storage fees remained
Unchanged for someone on Amazon in 2019
but the one thing that was the biggest change was they eliminated the storage fees of the
Long term storage fees for products that have been in Amazon's warehouse for 181 days. So about six months to a year
They eliminated that fee which used to be overall pretty big enough the biggest change they had in 2018
They eliminated that but however the long-term storage fee still exists if your products been in Amazon's warehouse for over 365 days
So now I'm going to talk about the referral fee now
the referral fee is overall the most important I
Would say fee for it because it makes up the highest percentage
Now if you're someone low ticket items then yeah it could your fulfill me could be higher
but overall let me explain to these fees that are lowering so
Furniture baby beauty and personal care will be lowered Amazon did not say the exact
Percentage amount will be lowered to but they will be lowered now do keep in mind all of these
Rates are being put in place in
February February 15th for the storage fee rates that are changing and then also February 19th 2019 for the fulfillment and the
referral fees however shoes handbags and sunglasses are going up to 18% from 15% and
Clothing accessories is going up to 17% from 15%
So those are the couple categories that are changing and then also Amazon is stating that they are lowering the per item fee
For all or most products now they were pretty generic on this
But I'm assuming they are talking about the fee that if you are selling as an individual seller on Amazon
Or the variable closing fee
Which they will this later disclose that later for about 2019 and then the jewelry category is going down to 5%
from it was 15 20 % for
Jewelry price below $250, but overall that is it for the Amazon fee changes
So a lot of it didn't really change a lot. There was some lowering in the categories such as a beauty personal care and furniture
Clothing and accessories kind of went up but the storage fees I think the biggest win with this
I think the storage fees for the long term for a hundred eighty one days to 365 were eliminated
um that can really add up and also one thing I actually forgot to mention about storage fees is they actually
lowered the
Minimum storage fee rate for long-term storage to 15 cents from 50 cents
but overall, I mean when selling on Amazon they're gonna take fees right and usually fees are definitely
Corresponding to supply and demand what I mean by that is if the fees go skyrocketing well sellers who know what they're doing
They're still gonna be in business and make a profit. So if Amazon changes their fees sellers that know what they're doing
They're probably going to raise their prices a little bit. It's all gonna be kind of corresponding to that
So that's all I have to say for this video
If you have any questions at all about sound on Amazon or the fees
Feel free to comment down below make sure subscribe to this YouTube channel and have a great day