Big news! Amazon cancels excess storage fees, effective from July!

On the last day of July, Amazon's system crashed again.

It is understood that the excess storage fee was originally applied to sellers with storage capacity restrictions and whose existing inventory exceeds the capacity limit. The longer the products of such sellers exceed the capacity limit in the warehouse, the more storage fees they will be charged.

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Once the changes in this news take effect, it means that if the existing inventory of relevant sellers in the United States, Canada and Europe exceeds the capacity limit, no excess storage fees will be incurred, which is undoubtedly good news for sellers.

Given that many sellers had previously been charged high excess storage fees, the news quickly sparked heated discussions in the industry.

Many sellers' first reaction to the news was joy:

“Good news! Amazon has finally reduced the burden on sellers!”

"This is to allow sellers to better prepare for the peak season in the second half of the year."

At the same time, some sellers have questioned Amazon's adjustment:

"Amazon limits storage capacity when shipping. How can a small seller have the opportunity to store excess capacity now?"

"This adjustment will be more beneficial to big sales. Few wheat crops can fill up the storage capacity."

But overall, this adjustment is undoubtedly good news for sellers with backlogs of inventory.

However, it is worth mentioning that some sellers believe that Amazon’s “good news” is actually a prelude to another “bad news”: Prime exclusive discounts will be charged.

It is learned that recently, according to industry insiders, Amazon will make some adjustments for subsequent promotions:

• Promotion time: Black Friday in 2024 will be extended to 12 days, from November 21 to December 2.
• Fee changes: Amazon will begin charging for Prime-specific discounts during major sales.

▲ The picture comes from the seller’s disclosure

Among them, the latter is the most concerned by sellers. The news said that starting from the autumn promotion and Black Friday, Amazon will charge a fee of US$50 for each Prime exclusive discount. And according to industry media, many investment managers have confirmed that Prime exclusive discounts will be charged soon.

▲ The picture comes from the seller’s disclosure

It is understood that Prime exclusive discounts are discounts on goods for Prime members, and are one of the most common promotional methods used by Amazon sellers during big sales. Although the whistleblower further stated that this fee is only charged for member-exclusive discounts during big sales, and member-exclusive discounts on weekdays are not charged as usual , the news still caused quite a stir in the industry.

From the platform's perspective, some sellers made a rational analysis: Amazon has always charged fees wherever there is a boom, and this year's Prime Day exclusive discounts may have caught Amazon's attention. Public data shows that in the three weeks before this year's Prime Day event, a record number of millions of new customers around the world signed up to become Amazon Prime members.

From the sellers’ perspective, this new fee is obviously not friendly. Some sellers believe that this fee further squeezes their profit margins , while others say that Amazon is actually raising the threshold for sellers to participate in the promotion in disguise.

"Promotions are meant to reduce prices, which cuts costs. With this new expense, profits are even lower."

"Discounts are charged, sellers are less willing to promote sales, fewer people participate in sales, and the overall price increases. Only big sellers can withstand constant promotions."

However, as of press time, Amazon has not yet responded to the news or issued any public notice. For Amazon sellers, the top priority is still to do a good job in operational management and advertising optimization in preparation for the upcoming peak season promotion.

What do you think about this fee change? Welcome to discuss in the comments section~