Recently, there has been a hot topic among Amazon sellers - Amazon's category adjustments caught many sellers off guard, especially the increase in commissions, which was even more of a headache.

Many sellers said that their product categories were suddenly adjusted, and the original low-commission categories were suddenly classified as high-commission categories, which directly affected their profits.

Category adjustments and commission increases have caused sellers to become anxious!

According to sellers’ feedback, Amazon’s actions are a bit “capricious”. Some stores’ products are clearly in different categories, but Amazon forcibly classifies them into a new high-commission category, which directly increases costs. For example, a seller received an email notification like this:

“Starting November 4, 2024, some ASINs will be reassigned to different fee categories. This may be different from the category in which the product is displayed on the Amazon front desk, which will affect referral fees and settlement fees in the future.”

What makes sellers even more crazy is that some industrial products have been adjusted to the furniture category, some books have been changed to household kitchen supplies, and even sellers selling auto parts have been directly adjusted to the kitchen category. The commission has increased by 20%, and they are expected to pay an additional US$5,000 each year!

Amazon’s official response to this is fairly “standard”: “We regularly review our ASIN categories and fee schedules.

If you think it is wrong, please contact customer service department for feedback and we will help you handle it.

"But the reality is that most sellers have not received effective solutions after giving feedback, and some have not even had their cases opened.

For sellers, this is not only a matter of commissions, but more people are worried about whether the adjustment of this category will affect the product traffic distribution and keyword rankings.

After all, Amazon’s traffic distribution is linked to categories. If a product is classified incorrectly, it may directly lead to a sharp drop in traffic, a plunge in orders, and even become a “dead link”.

Why is there such an adjustment? Industry insiders speculate...

How can sellers reduce losses?

A. Open a case in time: If you find that your product category has been adjusted, open a case immediately to provide feedback. Although the processing speed is not fast, early feedback is always better than no feedback.

B. Adjust pricing strategy: Commission increase is a fact. Sellers can consider adjusting prices appropriately to ensure profit margins and minimize losses.

C. Category optimization: Re-examine your product categories, ensure that the classification is clear and correct, and update relevant keywords to prevent the impact of subsequent traffic fluctuations.

D. Pay attention to the latest developments and policy changes on the Amazon platform, and prepare response plans in advance. The market competition is fierce, and flexibility is the key.

Final Words

Amazon's category adjustment may continue to affect the operations of some sellers in the short term. However, as sellers, we can only adjust our operation strategies in a timely manner, pay close attention to changes in the platform, and be prepared to respond.

I hope Amazon can fix these problems as soon as possible so that sellers can focus on their business and welcome the end-of-year promotion!