Expensive Christmas business: That’s why Amazon is increasing merchant fees during the holidays

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• Pandemic, inflation and war are also pushing up Amazon’s costs

• Merchant fees are to be increased during the holiday season

• Opinions of the affected dealers are divided

The costs of the pandemic, inflation and war are no longer affordable for Amazon

In April, Amazon CEO Andy Jassy told CNBC in an interview that the costs caused by the pandemic, inflation and war are now too high for the company to bear on its own. Therefore, the online giant is forced to levy a fuel and inflation surcharge. While Amazon tried to cover the increasing costs itself wherever possible, this became increasingly unsustainable as the pandemic continued and war began in Ukraine. “There comes a point where you can’t absorb all of those costs and run a business that’s economical,” Jassy said. The resulting costs were therefore passed on to the millions of retailers who sell their products through the online retailer.

Christmas sales: merchant fees will be increased

Now follows a fee increase for the Christmas business. As the company explained in an email to its retailers, from October 15, 2022 to January 14, 2023, third-party sellers in the United States or Canada who use Fulfillment by Amazon (FBA) will have to pay a total of 35 cents per item sold. This email is on file with CNBC. For merchants using FBA, the company handles the picking, packing, and shipping of the items. The holiday fee is in addition to the existing fees, which vary based on an item’s size, category, and weight. “Our channel partners are incredibly important to us, and we didn’t make this decision lightly,” Amazon said in the email. According to the US company, this is the first time an additional holiday surcharge has been introduced as “costs reach new heights.”

That’s what the dealers say about the increased costs

According to the online retailer platform, retailers’ opinions on the increased costs are divided. Accordingly, some dealers should have understanding for the surcharge. “It was to be expected, and it’s somehow still within limits. Amazon doesn’t use water either,” a dealer is quoted as saying from a Seller Central forum. However, there are also critical voices. “The FBA fees have only just been increased. Maybe the customers should pay a bit more? If you sell 10,000 units per month, you pay 1,300 euros more? That’s tough,” says another dealer.

E. Schmal / Editor finanzen.net

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