Wednesday, April 30, 2008

Amazon FBA Will Not Raise Shipping Fees Along with USPS!

I just heard today, that Amazon will continue to maintain their fulfillment rates, even with the announced increase coming from USPS in mid-May.

This is good news for me, since I'm the one paying those fees, but sellers who self-fulfill orders are not as lucky.

Smaller sellers who use the Post Office will see a slight increase in their postage fees come mid-May, but sellers who use services like SmartMail/DHL and UPS Mail Solutions are in for a big surprise.

I spoke with several media sellers who are expecting rate increases of 30% using SmartMail/DHL or UPS Mail Solutions. Ultimately I believe the backlash from sellers will bring that percentage down for high volume accounts, but there will still be sizable increases.

They will have to pass on those increases to the customer in an already low-margin, highly competitive environment.

This is just another reason, I am glad I chose to use FBA. This almost makes FBA's Basic Fulfillment worth considering.

Update: There appears to be some confusion regarding the information in this post. I was speaking only about FBA's fulfillment rates. The post has nothing to do with Amazon's shipping reimbursement for marketplace sellers. I've got an email in to them on that topic and will get back to you.

6 comments:

Beady Eye Guy said...

Yep, so basically as a toy seller I am at the mercy of those who create the listings and are too lazy to properly input the correct weight on these items (less than a pound for most action figures which usually weigh about 2 lbs - Priority).

Parcel Post is not cheap and neither is UPS for items under 4 lbs.

Randy Smythe said...

Beady Eye Guy,

Can't you change the weight in the listing. If you are a Pro-Merchant I bleieve you can edit listings.

Anonymous said...

Randy,
Have you heard anything recently about the possibility of plain boxes for Basic Fulfillment? EBay orders showing up in Amazon boxes are about the only thing stopping us from switching over at this point.

Randy Smythe said...

Anonymous, no movement in regards to plain boxes yet. They are still working on it.

Actually, if I still sold on eBay and used FBA to fill those orders I would plaster it all over mu listings and my eMails that they can trust the delivery because its being fulfilled by Amazon.

It actually could be a huge advantage on eBay if you play up the Amazon connection.

If you do make a point of it, please email me links to your listings so I can blog about it.

Anonymous said...

Randy, I am a pro merchant but only those with access to Seller Central can make those changes.

Unless I start the listing, I can't edit it outside of title changes and so forth.

It's very frustrating. Some vendor on Seller Central creates the listings and doesn't even do the weight properly. It's no wonder some are creating secondary listings (against the rules) to set the weight properly.

Randy Smythe said...

Amazon has a ways to go in these areas but I do know for a fact they are working on them.

Eventually everybody will be on Seller Central. Until then it is frustrating.