Revealed! How service providers can reduce Amazon sales commissions

Revealed! How service providers can reduce Amazon sales commissions




As an Amazon seller, have you ever thought about how to reduce sales commissions without affecting product exposure and rankings?

First of all, you need to understand Amazon's category classification logic. Categories are roughly divided into two types: one is the list category displayed on the front end, and the other is the commission category.


The difference between list categories and commission categories


List categories - the categories you see when browsing products on the Amazon website, such as "Best Sellers List" or "Electronics List", which directly affect the exposure and ranking of products.


Commission Category - The category Amazon uses to calculate seller commissions. Amazon charges different commission rates for products in different categories, which directly affects the fees sellers need to pay.


Although these two categories have different functions, they are closely related. They may or may not overlap.


Currently, Amazon allows sellers to adjust the commission category of products without changing the list category!

This means that sellers can maintain product exposure and ranking in the list category while reducing sales costs by adjusting to a category with lower commissions.

At the same time, such adjustments will not affect the product weight and traffic, because the product weight is related to the list category, not the commission category.



How service providers can reduce Amazon sales commissions


1. If it is not a new store, you can follow the following steps

Find products with low sales commissions, open an English case using its ASIN and ask customer service what classification the low-commission products belong to. Select the case channel: Get support-Selling on Amazon-Products, Listings or Inventory-Merge duplicate or split product pages-Merge Duplicate Product Page-Contact Us.



2. Open a case to request a change for a single high commission ASIN:

Use the first channel above to open a case and ask customer service for help. Since customer service is likely to reject requests on the grounds of providing the best experience for customers, it is recommended to open a case for a single ASIN, and open cases repeatedly after being rejected. If necessary, send the same type of low-commission competitor products to customer service for comparison and questioning.


  • Check your competitors’ commissions:

https://sellercentral.amazon.com/revcal

  • The commission categories corresponding to the major categories officially defined by Amazon are:

https://sellercentral.amazon.com/help/hub/reference/GTG4BAWSY39Z98Z3

  • The commission categories corresponding to the specific subcategories in the major categories officially defined by Amazon are:

https://sellercentral.amazon.com/gc/fee-category-guidelines


Email Templates


Example: hello amazon

ASIN: xxx

sku:xxxx

is a gaming headset, but it has a wrong referral fee.

I am please requsting your help of updating the referral fee to 'consumer electronics


3. Table update method


Form upload : Form type is Category-specific Inventory Files

Location : inventory——add products via upload——Additional Templates——Category-specific Inventory Files
Download two tables, the template and the category code table. Select according to your target category. For example, my target category is gl_electronics, so click the category name to download the template table, and click BTG to get your target category code.
About filling in the form: the required items are category, SKU, category code Browse node found in the BTG table, and then select partial update.


It is recommended that you do not do this. At present, there is indeed no news that the account has been closed due to changes in commissions, but after all, these outrageous operations cannot rule out the possibility of Amazon settling accounts later, so everyone should just operate normally.



Other tips to reduce category commissions

1. Change the category commission for following sales

Sellers can use their own secondary accounts to sell their own ASIN (Amazon Standard Identification Number), and then open a case with Amazon customer service, stating that the product should belong to the low commission category.

This operation requires providing sufficient evidence to show that the commission rate charged by Amazon is incorrect, so as to prompt customer service to make adjustments.


2. Manipulate the commission range of categories

Understanding the commission range of each category and selecting the appropriate category for classification can effectively reduce the commission. For example:

  • The commission for the photography/videography, mobile equipment, TV/audio, and video game console categories is usually 8%.

  • The commission rate for the computer category is 6%.

  • The commission for 3D printed goods, automotive products, and industrial and scientific products is 12%.

  • For beauty products priced at less than $10, the commission is 8%; for products priced over $10, the commission is 15%.

For details, please go to the Amazon backend to check it yourself!


3. Modify the category commission directly through VM manager (service providers also have this method)

This involves Amazon's VC account. Sellers with VC accounts can perform these operations through VM. Once the VM manager receives the application, he will usually process it quickly to ensure that the commission is adjusted as required.


If your product meets the attributes of multiple commission categories, you can apply to VM to adjust to a category with a lower commission. These adjustments must be reasonable and compliant, otherwise Amazon may discover and hold you accountable. (Risk)


Today I will share with you the promotion plan of Amazon's new products in different periods.




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