Amazon Fee Increase for Media Categories

Riding in on the coattails of the recent postal rate hikes and the increase in FBA fees, Amazon recently announced that they plan to increase fees in some of the the media categories starting in April. This will push the Variable Closing fee for Music, Video, and DVD products from $0.80 to $1.35 – an increase of $0.55 or approximately 69%.

While the fee increase goes into effect for Amazon’s merchant-fulfilled orders on April 24, 2013, those using Fulfillment by Amazon (FBA) won’t be affected by the increase until next year. This has led to some speculation by sellers that Amazon is hoping more sellers will adopt FBA.

For sellers who prefer to continue fulfilling their own orders, this comes as a triple whammy after the other fee and rate increases – especially since the playing field between merchant-fulfilled sellers and FBA sellers won’t be level for an entire year. Not to predict doom and gloom, but from these numbers it seems fair to guess that some sellers may see a drop in media sales, at least until the fees equalize next year.

On a more positive note, there is some good news coming from Amazon – they have announced that they are raising seller shipping credits for the Music, Video, and DVD products. This changes the rates from $2.98 to $3.99 for Domestic Standard (a difference of $1.01 or 34-percent) and from $5.19 to $6.19 for Domestic Expedited (a difference of $1.00 or 19-percent).

Amazon also stated in their Shipping Services & Carrier Adjustments that they will adjust seller fees based on actual carrier cost. If the charge from the carrier is different than the original amount you paid for shipping, Amazon may apply a carrier adjustment to your seller account. Keep in mind, however, that it works both ways – you may get a credit, but you could also be charged. One other thing to be aware of is that although these adjustments should appear in your payment report, you may not actually see them during the same settlement period and they may not show up at the same time as does the original buyer’s purchase.

About our Guest Blogger
This guest post is by Kat Simpson. Kat is a trusted eCommerce author, speaker, educator, and entrepreneur. Kat Simpson has been a successful eCommerce merchant for over 10 years; is an eBay Education Specialist and Gold Level PowerSeller, as well as a successful Amazon merchant. Currently Kat is the hosts the popular weekly eCommerce Podcast That Kat Radio.

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