Amazon's major events in June! Both tax collection and discounts

The first half of this year has been a turbulent time for Amazon sellers. The external environment has Trump's misbehavior, and Amazon has also been undergoing various updates and rectifications internally.

The result is that all kinds of good and bad things are piled up together and have to be implemented in June. Today, as June has just begun, I will take you to take a look at what good/bad things will happen in June.

Let’s start with two things that are bad for sellers, and they are essentially taxes.

1. Starting from June, Amazon officially collects taxes on FBA miscellaneous fees and platform commissions.

The sellers who are mainly affected by the platform commission tax are those who have registered their stores as US companies and whose company addresses are located in Connecticut, the District of Columbia, Hawaii, South Dakota and West Virginia. (More states may be added later)

If the above situation is rare, then the FBA miscellaneous tax involves many more sellers. Because as long as the seller uses the FBA warehouse located in Arizona, Connecticut, Illinois, and West Virginia, miscellaneous tax will be levied.

Regarding the calculation methods of these two tax rates, I have given detailed examples in my previous reports. Please click here to view them.

2. The new US$300 billion list will be finalized in June

This matter is very serious. Not only our cross-border sellers, but the entire international trade environment may be seriously affected by this tax.

There will be a US government hearing in mid-June, which will decide whether to implement the Trump administration’s additional $300 billion tariff list.

It has only been 20 days since Trump turned his back on China and restarted the trade war. During this period, we have experienced major events such as Huawei being sanctioned and China establishing a list of untrustworthy entities.

However, for cross-border sellers, except for the exchange rate which is like a roller coaster every day, other factors have little impact on us, because most of the products on the list of sanctions that were restarted last time were categories that we cross-border sellers would not be involved in.

But this new 300 billion list is different, the categories involved are all daily consumer goods, such as clothing, glasses, headphones and kitchenware, etc. (If you want to check whether your category is involved, scan the QR code at the end of the article and send me a private message to receive the 300 billion list)

These are the categories with the most cross-border sellers. If this list is implemented, it may impose an additional 25% tax, just like the last 200 billion tax. The cost of cross-border sellers will increase significantly.

The current situation is not optimistic. According to the Trump administration's usual style, it will implement a tough tariff strategy even if the hearing results are not ideal.

This is certainly a result that neither consumers nor sellers want to see, and we can only hope that China and the United States can reach a settlement as soon as possible.

Next, let’s take a look at what new opportunities and new policies to reduce costs will be implemented for us Amazon sellers starting in June.

1. The new rates for the European station will be officially implemented in June.

Amazon's new rate policy for Europe will take effect on June 5. The main changes involve the following categories:

To a certain extent, it reduces the costs of sellers in these categories, especially personal care and baby categories. The halving commission strategy directly encourages sellers to try and develop low-priced products, which is a good opportunity for sellers in these categories or those who want to try.

2. The monthly storage fee discount will be officially implemented in June.

This is an absolute welfare strategy. As long as the monthly sales exceed 60 pieces of a single SKU, or you receive a recommendation in the replenishment plan, you can enjoy a discount of up to 75% off the monthly storage fee.

The promotion will last until the end of January next year, and starting from June, sellers can be exempted from storage fees for products that met the regulations in the previous month. Monthly storage fees are a very large cost. In the past, my brother-in-law would only offer discounts on long-term storage fees, and would not dare to offer promotions randomly on a monthly basis.

Therefore, it is rare to have such a high discount on monthly storage fees this time. Everyone should seize this opportunity. Be sure to screen whether you have eligible products in time! (Screening method click here)

Generally speaking, there are more opportunities in June. Now not only new products are exempt from storage fees, but even best-selling products are also exempt from storage fees.

Therefore, sellers can adopt more aggressive stocking and development strategies for Prime Day in the middle of the year and even Black Friday Cyber ​​Monday at the end of the year without worrying about the resulting storage costs.

Finally, I have collected a list of Primeday preparation tips to help you sort out your preparation ideas. Scan the QR code below to contact me to get them.

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

Source: Cross-border Business School

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