FBA fees have increased again! How can I get the profits I deserve from my brother-in-law?

FBA fees have increased again! How can I get the profits I deserve from my brother-in-law?


Today, Amazon stated in its latest announcement that starting from February 18, 2020, there will be partial adjustments to Amazon’s logistics fees and sales commissions in the United States.


(Screenshot of Amazon backend policy)


The changes to Amazon FBA this time not only increased the logistics and delivery fees by 3%, but also other fees such as monthly warehousing, labeling services and order removal.


1. Changes in monthly storage fees


Monthly inventory storage fees for standard-size items will increase by $0.06 per cubic foot from January to September. This change will first be reflected in March 2020 storage fees that will be charged in April 2020.


2. Changes in labeling fees


On February 18, 2020, we will increase the fee for the optional FBA Label Service from $0.20 per unit to $0.30 per unit.


3. Removal Order Fee


Starting from February 18, 2020, sellers will have to choose to remove orders for unsalable products. Amazon will charge a removal order fee based on weight.


4. Changes to the Small and Light Commodity Program Fees


A: Removal Fee

For small and light items between 4 and 10 ounces, the removal order fee will increase from $0.25 to $0.30 per unit.

Removal order fees for items under 4 ounces remain at $0.25 per item.

B: Labeling service fee

For the FBA Small and Light program, the FBA Label Service fee is $0.10 per unit.


For sellers, FBA logistics and warehousing costs account for a large part of all costs. A small fee increase means that the seller’s logistics and warehousing costs may increase dramatically.


On the other hand, due to the complexity of FBA fees and Amazon's huge daily sales, it is inevitable that goods will be lost or damaged due to some operational errors or force majeure factors.


According to statistics from relevant agencies, the error rate of Amazon FBA is between 0.5% and 1% , so some sellers will be "hit" innocently.


According to incomplete statistics, the losses caused by Amazon's mistakes account for an average of about 1-3% of sales, which means that for every 10 million in sales, there is a loss of 100,000 to 300,000!


It doesn’t matter if the fees have increased. After all, these are the rules of the platform. If you want to make money on my brother-in-law’s platform, you must follow his rules.


However, if you don’t find a way to get back the losses caused by the platform’s mistakes, you will feel very unhappy.


Amazon has corresponding compensation policies for losses caused by FBA mistakes, such as the FBA Lost and Damaged Inventory Reimbursement Policy .


Therefore, if a seller encounters damage or loss of goods when using FBA, he or she can file a claim through this policy.


So, under what circumstances can you file a claim against Amazon? Chenzi has summarized the following 14 situations:


  1. Lost/damaged inventory in Amazon warehouses for more than 30 days

  2. The product was damaged during transportation by the transportation company entrusted by Amazon for more than 30 days, and no corresponding compensation was received

  3. Not getting reimbursed for the return costs Amazon claimed to reimburse

  4. Amazon destroyed the products without the merchant's permission and did not receive corresponding compensation

  5. Within 9 months, the warehouse data was inconsistent and the quantity was lost without corresponding coordination and compensation.

  6. Amazon's compensation amount is less than the corresponding compensation

  7. The compensation amount does not match the actual product value

  8. Amazon customers receive a refund but do not return the item within 45 days

  9. The customer refunded a higher amount than the purchase amount

  10. Amazon will accept and refund customer returns made more than 30 days after the date of purchase. In November and December, it will be 90 days.

  11. Amazon does not charge a 35% restocking fee when the customer exchanges the product for more than 30 days

  12. The customer exchanges the product, but Amazon refunds the customer and ships the product to the customer

  13. When the customer receives the goods, the order received exceeds the purchased goods

  14. Additional charges for size and weight


Of course, there are some products that are not covered by the compensation:


  1. Products that are prohibited from being sold by Amazon FBA;

  2. Products whose packaging does not meet Amazon FBA warehousing requirements;

  3. Restricted Products that are damaged or lost during order removal;

  4. The seller's product itself has defects or quality issues;

  5. Products that use the Small and Light Commodity Program logistics service.


Now that we know the situations in which claims can be made, how do we make a claim?


If the seller wants to make a claim himself, the easiest way is to download all the analysis reports and email them to Amazon himself.


However, there will be the problem of writing emails and communicating with Amazon officials over the phone. At the same time, if the seller has a lot of products in large quantities, it will take a lot of time and energy to file complaints one by one, and Amazon officials also have time constraints.


Therefore, it is recommended that sellers can do it themselves if there are only a few products that need to be claimed. If the quantity is large and the circumstances are complicated, it is best to find a professional service agency to make a claim.


Whether you choose to handle it yourself or hire someone to do it for you, don't let these mistakes go, you deserve every penny of profit.


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