FBA sellers penalised by new Amazon postage policies
Glenn is a reader and regular commenter on Tamebay and sometimes he writes for us, sharing his experiences as an ecommerce trader.
As February’s long term storage fees approach I find myself somewhat miffed to be paying storage fees on products that I had reasonable expectations would sell within a 12 month period.
Why am I miffed?
Because Amazon have changed policies after stock was submitted to a fulfilment centre and products which previously sold well are now slow sellers or even stagnant. Many products with a selling value below £10 have become “Add on” products (after) being submitted to a fulfilment centre and customers (except Prime buyers) wanting to make a single small purchase below £10 cant do so and any selected product is placed in their shopping basket until the total value of products reaches £10 or more.
I, like other Amazon FBA sellers, must now assess my unsold stock and make a decision to retain, remove or destroy and each option has a cost implication.
Not all products below the value of £10 are “Add on” products and Prime member can still enjoy Unlimited FREE One-Day Delivery, with no minimum purchase requirement. Customers who are not Prime members often pay a high postage costs to such a degree that it’s tempting to increase the price of the low value products to £10 at which point they become eligible for “FREE Super Saver Delivery in the UK on orders over £10”
On 8/1/2014 Dan highlighted within Tamebay Amazon’s change of policy concerning Free super saver delivery to the effect that only orders over £10 will be eligible for free delivery on UK orders fulfilled by Amazon.
All those FBA sellers, and I include myself, who sent media products to Amazon are now finding that CDs and books which previously sold well are now selling slowly if at all.
To counter this drop in sales I have started to fulfill many of my low value products myself and generally only send products with a selling value of £10 or more to a fulfillment centre.
This change is bad for me and Amazon because for personal reasons I only work 10 months of a year and during the 2 months absence all my merchant fulfilled products will be placed on ‘Holiday’.
The CDs, books and low value products sent to Amazon for fulfillment by Amazon were all tried and tested products and really should have all sold out. To find that I am now going to incur unnecessary fees because the goalposts were moved has seriously undermined my confidence in Amazon.
I was an Amazon customer long before I commenced to sell with them. I spend a considerable sum with Amazon every year on books, computers, and other items and will probably continue to do so, but considering how customer focused Amazon is I am surprised at the lack of consideration to FBA sellers.