Amazon's price increase takes effect after the new year! Seller costs rise again

After Amazon’s annual FBA last-mile delivery fee adjustment took effect on the 18th, new fee adjustments will take effect on February 1st . Monthly storage fees and long-term storage fees, another major component of sellers’ costs, will be increased across the board!

When the price adjustment for last-mile delivery took effect on the 18th, many sellers complained that the price increase was too much after being reflected at the terminal. Some sellers even increased the delivery fee from about $3 to $6. Sellers were forced to apply to Amazon to remeasure the packages to find out why the price increased so much.

Afterwards, some sellers did mention that after applying for re-measurement, the package dimensions were updated, and the delivery fees that had risen to an outrageous level dropped slightly, but not by much. More sellers encountered real price increases, which did not change even after re-measurement.

So where are the storage fees increased this time? First, during the non-peak sales season, from January to September, the monthly storage fee for standard-sized items will increase by $0.08 per cubic foot, and for large items by $0.05 per cubic foot. If it takes effect on February 1, the storage fee for the entire month of February will be based on this latest standard, that is, it will be collected in March of the following month. The January storage fee collected in February will still be based on the old standard.

The charging standards during the peak season, from October to December, remain unchanged and are still based on the old standards (US$2.4 per cubic foot for standard items and US$1.2 per cubic foot for large items).

Another change is the long-term storage fee. Originally, Amazon only charged long-term storage fees for goods that were stored for more than one year. If the inventory is less than one year old, no fee is charged. Now there is an additional time period. If the inventory is stored for more than 9 months (270 days) but less than one year (365), a low standard long-term storage fee (US$1.5 per cubic foot) will also be charged.

That is to say, after the Chinese New Year, we sellers will face a new environment with sharply rising costs. Are you ready?

After the outbreak of the epidemic last year brought huge growth to Amazon, this year's traffic has clearly entered a period of stagnation. Let me analyze the saying "When the sea recedes, you will know who is swimming naked". What does this mean in business analysis? The increase in the market can cover up many problems to a large extent. When the market stops growing and enters the stage of stock slaughter, every small problem in the past will be magnified.

Amazon has obviously entered the stage of killing its stock, which is why everyone has been wondering why the cross-border industry is so involuted and why there are so many philanthropists since the second half of the year. Stock means that more and more sellers have to fight in a limited market, and it is difficult for this process not to breed involuntariness and sellers who use low prices to outlast their competitors and occupy the market.

Involution and low prices do not mean that they have to keep spending money on charity. The ultimate goal of philanthropists is to outlast their competitors and occupy the market before turning around and cutting off consumers. However, Amazon’s drastic price increase in FBA this year is undoubtedly a blow to sellers who are still spending money to make a living. Spending money on charity will ultimately harm people and the industry. The FBA price increase will definitely force out a wave of "philanthropists" who can't see the end of their spending. Everyone must protect their profit margins this year and wait for market signals, and there will be a wave of dividends to be reaped.