The Holiday Season: Prepare for Higher Amazon Seller Fees

written by Carlos Alvarez
10 · 06 · 22

With inflation affecting everyone’s lives, the cost of everything is rising. For those selling on Amazon, there is no exception. In August 2022, Amazon fulfillment fees increased by 30%, or 35 cents. These fees affect not only your store, but your consumer’s pocket.  Let’s take a look at how these fees will affect you and strategies to avoid rising costs.

Holiday Fee Increases

The Amazon increase of 35 cents per item sold in Canada and US will be in effect from October 14, 2022 through January 15, 2023. Amazon also stated this increase is not limited to Q4 and that it should be expected going forward. While it doesn’t seem like much, small and large stores alike will feel the financial impact. Other services such as FedEx and USPS have announced similar increases for the holiday season. These increases also affect your business. Here are a few strategies to keep costs down through the rest of the quarter.

Reassess Your Q4 Plan

The fee hikes add cost to sellers and consumers alike. Changing your forecast can help you prepare for these increases. Be sure your budget is up to date and realistic. Don’t just think about the fees, consider your marketing strategy and advertising costs. Adjust your budget accordingly and consider organic methods of attracting customers, including SEO and social media.

How To Handle The Fee Increases

There are a few things sellers can do to handle the fee increases through the rest of the quarter. Sellers using Amazon fulfillment services will need to find an alternative strategy for Q4. They could move away from Amazon. There are a variety of other e-commerce platforms. Even though these services are convenient and beneficial for sellers, they are not the only ones available.  Alternative marketplaces are available on a variety of platforms. Using more than one platform can protect your brand as well. Wizards of E-comm works with sellers of all types and offers classes to help grow your business. Learn more about Wizards of Ecom.

Another method is direct-to-consumer. Buyers go straight to your website instead of through Amazon. Implementing techniques such as SEO will make your website more visible in search engines, leading to more traffic. This approach can eliminate seller fees altogether and help your website to rank organically.

Using SEO to optimize your website and listings can help you reach more consumers through organic searches. Be sure to include more high-quality images of your products and use specific keywords in your listings so search engines can easily find you. This will allow your listing to rank in search engines, reaching more consumers.

Amazon fees rising affects everyone’s bottom line. The costs associated with rising fees can greatly impact your e-commerce business. Preparing for the increase and assessing your Q4 goals can help you adjust smoothly. If you need support, join Wizards of E-comm and meet other sellers.  With a variety of classes and information, we can help you navigate the world of e-commerce. Learn more about Amazon fee hikes.

Carlos Alvarez

Alvarez sums up his mission to help online sellers with a quote he heard early on in his career. New sellers constantly compare their Chapter 1 to another seller’s Chapter 20. They see what other veteran sellers are doing and they judge their success and failures by this benchmark. His goal is to show sellers a realistic path to success, and how they can enjoy every chapter of their own, unique journey.

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