Amazon has added a new fee: advertising management fee!
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Starting from 2024, Amazon's behavior of taking advantage of sellers has become more and more unbearable. Warehouse defect fees, warehouse configuration fees, low inventory fees... and so on have appeared one after another. When the advertising fees themselves are already super high, they still want to fleece sellers through advertising! In the past two days, the member-exclusive charges have not been fully digested, and now there is an additional advertising management fee (an advertising service fee of 0.03 per click). The two charging policies came one after another, and the sellers were once again defeated and called Amazon shameless! ! The email sent by Amazon emphasized: Starting August 15, 2024, regulated advertising rates will apply to your Amazon advertising account for advertisements placed in Canada. Advertising management fees, also known as advertising regulatory fees, are fees that may be charged to you on your bill when you place ads in certain countries or when advertisers purchase ads in certain countries, depending on the implementation of local Digital Services Taxes (DST) or other regulations. Previously, the countries that charged fees were mainly concentrated in Europe, including: France, Italy, Spain, the United Kingdom, Austria and Turkey. Now the Canadian site will also start charging fees! Currently, only some sellers have received this message, but judging from the content of the email, there is no specific group involved. It should be a charging rule for all sellers. Some senior sellers further pointed out that this fee is different from normal advertising fees, which are charged on the corresponding site, but is calculated based on the clicks of the buyer's account. That is , if an Amazon seller opens an advertisement on the US site and buyers in Canada, France and other countries click on the advertisement, the seller will incur corresponding advertising management fees.
For example: A: If you are an advertiser located in the US and purchase an ad, and your ad receives a click worth $1.00 from a customer in a country with a 3% DST rate, Amazon will charge an advertising management fee of $0.03 for that click. B: If you are a seller in the UK and a customer in Austria clicks on your ad, you will need to pay advertising fees regulated in both the UK and Austria (i.e. fees are charged in both the business location and the delivery location, so there is a two-way charge). There is no final conclusion yet, and the specific details will be subject to the notification received. However, once this charging policy is implemented, the sellers' meager profits will be even more precarious.
The above rates may change according to the off-season or peak season or winter and summer time. You can view the advertising management fee on your PDF invoice and web invoice (available on the "Billing" page). These fees will be added to the subtotal of your advertising billing invoice. Download the PDF bill and you will see the following details: In the past few days, Amazon has added 4 new fees: in addition to the advertising management fee mentioned at the beginning of the article, the member-only discounts announced recently, insurance premiums, and some warehousing configuration fees , there are also warehousing configuration fees in March, low inventory level fees in April, return processing fees in June, etc. According to statistics from Amazon sellers, they have to face 16 charges from the moment of shipment, including warehouse configuration fee, warehouse defect fee, low inventory fee, FBA processing fee, return processing fee, removal and abandonment fee, monthly storage fee, peak season storage fee, storage utilization surcharge, overage inventory surcharge, multi-channel delivery fee, bulk clearance fee, hazardous goods delivery fee, advertising fee, account subscription fee, and excess storage fee. While new charging items are constantly being added, the existing fees are also rising year by year, and the increased costs of sellers are converted into Amazon's revenue, especially in advertising. The financial report shows that Amazon's advertising revenue in 2023 was US$46.91 billion, an increase of 24% from US$37.74 billion in 2022. Although Amazon does not set prices for advertising , as competition intensifies, advertising fees are becoming more and more expensive. In addition, most of the positions with high conversion rates are allocated to advertising. If sellers want their products to be more easily discovered, they can only advertise. For sellers, the advertising management fee means that operating costs have increased again, but if sellers want to remain competitive and successful, this service is a must. Choosing this service will result in about 3% of profits being taken away, which is undoubtedly adding insult to injury. It is worth noting that although only one Canadian site has been added at present, according to past experience, Amazon’s practice of promoting a new policy from a single site trial to the entire site has been in place over the years, so it is highly likely that other sites such as the US site will also charge advertising management fees in the future. |
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