Amazon fee hike: Minimum referral fees

From the 9 October 2014 Amazon are implementing new per-item minimum referral fee. This will impact all sellers of low value products and we’re expecting for many that it will simply be no longer viable to sell on Amazon.

In effect it is a fee hike for all products with a selling price below £2.67 (or €3,33 for European sites)

These fees are billed as “per-item” minimum referral fees, not per-order. That appears to imply that even if a customer purchases multiple products from you in a single order the fees will be applied to each item separately, not to the total order value.

If you sell low value products you will almost certainly want to consider product bundles rather than continue to sell products on an individual basis.

Amazon per-item minimum referral fees

Jewellery and Watch products

A new £1.25 per-item minimum referral fee.

We’re still trying to figure out what fee will be charged for the 28,455 products listed on Amazon UK in Jewellery with a current selling price of £1.25 or lower, it looks like with the new minimum fee you’ll be paying Amazon to sell on their site.

Electronics Accessories and PC Accessories products

A new £0.40 per-item minimum referral fee (for sellers on the Professional Selling Plan, this is a fee reduction from the existing £0.50 per-item minimum referral fee).

All other product categories

A new a £0.40 per-item minimum referral fee (with the exception of Books, Music, Videos, DVDs, Software and Video Games, Video Games Consoles and Grocery).

Kindle Accessories

Kindle Accessories products will have a referral fee of 51.75% (up from 40.25%) with a £0.40 (plus VAT) per-item minimum referral fee.

Amazon.de, Amazon.fr, Amazon.it and Amazon.es:

Jewellery & Watch products will have a new €1,50 per-item minimum referral fee.
All other product categories except Books, Music, Videos, DVDs, Software and Video Games, Video Games Consoles, and Grocery will have a €0,50 per-item minimum referral fee.