Amazon sent out an email on December 19th announcing that there will be changes to the Amazon referral and minimum referral fees for some items. Effective February 19th, 2019 certain items will see a reduction in the referral fees Amazon collects. You can view the full Selling on Amazon Fee Schedule here.
According to the email Amazon sent, these changes are being made to help sellers increase their selection of products. Amazon is doing this by lowering the referral and minimum referral fees to ensure they are in-line with the changes in industry dynamics and seller feedback in order to help sellers grow their business. Amazon referral fees help minimize up-front costs by only being collected when a sale is made and are based on the total sale price (including any shipping or gift wrap charges).
Perhaps the most exciting news about the fee changes is that the applicable minimum referral fee for most categories, which is applied on a per-item basis unless otherwise indicated, is being reduced from $1.00 to just $0.30! The minimum fee for Jewelry and Watches is also being reduced from $2.00 to $0.30 per item!
Here is a breakdown of the changes to referral fees coming on February 19th, 2019:
It’s important to note that the changes for some categories, like Grocery, Gourmet, Furniture and Jewelry, are only applicable to orders with total sales prices under or over a specified amount. If the total sales price is less or more than the specified total sales price, the fee will be higher. These changes are especially exciting for those sellers with products in the Jewelry and Watches categories that are priced over $250 because now the referral fee is much lower, meaning they get to keep more money from each sale!
If you want to learn more about the finer details of the selling fees applicable to your account, you can view the Detailed Fee Explainer by selecting Payments under Reports in Seller Central. Click on any of the amounts in the Total column and then click any of the amounts under the Amazon fees to navigate to the ‘Fees for Order’ page for that transaction.
Hopefully you’re as excited as we are about these changes! We’re so excited to kick off 2019! We’ve got some amazing things brewing for next year that we can’t wait to unveil. We look forward to helping you achieve your goals in the year ahead and beyond!
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Check out our latest post on Amazon Seller Fees here.