Amazon Increases FBA Fees

By Joe Waynick

August 11, 2012

As Amazon increases FBA Fees it appears that a sluggish American economy is being blamed for forcing Amazon’s hand.

The dreaded increases for Pick & Pack fees are scheduled to take effect in May.

Taken at face value, the increases aren’t that bad, but what does it say about the vulnerability of online booksellers who depend heavily on FBA sales?

I have over 100,000 FBA listings sitting in an Amazon warehouse and due to Amazon’s actions I see an instant decrease in overall profits.

My response?

  • I’m experimenting with setting up my own on line bookstore where I’ll list high turnover inventory at prices highly competitive to Amazon and fulfill them myself.

    No, I don’t expect to drive Amazon out of business, nor would I want too. But the few sales it brings in will help counteract this and future increases, with little impact to my operation.

  • Being a little less willing to compete on price with less experienced sellers, and more patiently waiting for prices to come to me under certain circumstances.

  • Actively increase the number of higher priced non-fiction book titles I carry.

This will be an ongoing project and I’ll keep you posted here on my bookselling blog whenever I discuss fulfillment by Amazon.

Meanwhile, you can get more detail about the Amazon fee increases at this Auction Bytes article.

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FBA stands for "Fulfillment By Amazon." It is a distribution method where you as a bookseller ship your inventory to Amazon for storage in their distribution …

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