Amazon fees are rising across the board! Effective next month

Let’s start today’s main text.

In June, we reported on the issue of digital tax in Europe. At that time, European countries were rushing to restore their economies. However, due to the epidemic, online shopping has been booming, while the offline real economy has recovered slowly. In addition, the government needed additional funds to implement epidemic strategies. At that time, many European countries were considering imposing digital taxes on online e-commerce.

We have analyzed that this digital tax is no longer one of the means of transaction pressure in the trade war. European countries are really considering implementing this new tax. Once this tax is implemented, Amazon will definitely find an excuse to make us sellers bear the cost.

Finally, the UK took the lead in completing the relevant laws on digital tax and has begun to levy taxes on Amazon. As expected, Amazon put the money on the sellers and announced that from September 1, all Amazon fees in the UK will increase by 2%, including sales commissions, FBA storage fees, and FBA shipping fees.

This increase is not a direct 2% increase in the rate. For example, if a product worth 100 pounds is calculated based on a category commission of 15%, the commission to be deducted is 15 pounds. Now this 15 pounds fee will increase by 2% to 15.3 pounds. According to the overall rate, the commission ratio has increased from 15% to 15.3%.

Other services that are directly charged by price are easy to calculate, and they are all increased by 2% of the original fee. This includes storage fees, transportation fees, multi-channel distribution fees, etc. Currently, only the monthly storage fee has increased, and the excess fee and long-term storage fee have not been adjusted for the time being and will continue to be charged according to the original standard.

As mentioned above, this digital tax is not a means of exerting pressure. In fact, the UK has been preparing for this digital tax for more than half a year. We reported related news in January this year. The UK was already discussing this proposal before the outbreak of the epidemic.

At that time, an Amazon spokesperson had already stated that the cost would be transferred to the sellers (how shameless!). However, the pandemic later occurred, and the proposal has been shelved and postponed, from the originally expected implementation in March to the recent period.

Therefore, this time it will not be like the digital tax on the French site last year, which was implemented for a short period of a few weeks and then canceled. Instead, it may accompany sellers for a long time, and we will have to bear this 2% fee increase.

And this is not just the case in the UK. France and Germany are also making proposals and discussions about digital taxes. France even implemented a wave of digital taxes last year as a means of pressure. Now their only concern is the US government.

Earlier, the Trump administration threatened France, saying that if it insisted on imposing a digital tax, it would "strongly retaliate, including but not limited to additional tariffs." These threats cannot be said to be useless. At least they have made Germany and France hesitate to implement the digital tax, and it has not been finalized until now.

We sellers have no say in the digital taxes of various countries. The only thing we can do is to operate well and slowly optimize the profit margin to cover this cost. Especially with the recent news about Primeday, sellers need to make preparations before the arrival of Global Membership Day.

An internal email from a business manager leaked recently, revealing the start time of this year's Prime Day, which is basically consistent with what foreign media reported last month, showing that this year's membership day will start on October 7 and last until November 3. Now the deadline for warehouse entry has also been revealed.

Currently, the registration for Member Day LD has been closed, but you can still apply for exclusive discounts and Primeday Coupons for Member Day. It can be said that the general gameplay is similar to last year. The difference is that this year's online traffic will definitely be much larger than last year.

After this epidemic, Amazon's online shopping demand has skyrocketed many times, causing the entire logistics system to be fully loaded. This is why Amazon has repeatedly postponed Prime Day, in order to quickly solve the logistics problem, otherwise it will not be able to cope with the huge number of orders on the membership day. Therefore, this Prime Day will definitely be an unprecedented event, and even free activities such as exclusive discounts and coupons will have a very impressive effect.

So everyone must seize the great opportunity of this Primeday , as you may not encounter such an opportunity for a long time.