European station logistics and warehousing cost adjustment! Without strong competitors, Amazon is going to raise prices

Amazon logistics and warehouseing cost

About two weeks ago, Amazon announced the changes in logistics, warehousing, and commission fees in the United States for 2024. The changes in clothing commissions below $20 have greatly shocked the outside world.

In 2024, have the fees related to Amazon’s European website increased or decreased?

1.Freight changes

The domestic delivery fees for Amazon stores in Germany, France, Italy, and Spain remain unchanged; Amazon domestic delivery costs for stores in the UK, Netherlands, Sweden, Poland, and Belgium will increase.

Reduce remote delivery costs for shipments from France, Germany, Italy, and Spain to the UK; The European distribution network and remote delivery costs from the UK to the EU remain unchanged.

The delivery strategy for low-priced goods continues to apply, with price lines as follows:

The UK is priced at 10 pounds or less; The price for Germany is 11 euros; France, Italy, and Spain are priced at or below 12 euros; Sweden 140 Swedish kroner; Poland 55 zloty (including value-added tax).

Note that if Amazon Logistics preparation services are used, starting from February 5th next year, the fees for Amazon Logistics label services and opaque bagging services for all envelopes, packages, and standard size units will increase, while the fees for bagging, bubble wrap, and tape services will remain unchanged.

At the same time, Amazon will also provide shipping cost discounts for products that meet the requirements of the “Ship in Original Packaging (SIPP)” program.

2.Storage fees

There have been many changes in the storage cost items. Starting from March 1, 2024, the storage fees for oversized goods and footwear, clothing, and luggage categories will increase from January to September.

Except for dangerous goods, the storage fees for all goods from October to December will also increase.

Taking shoes, clothing, and luggage as an example, before March 1, 2024, the monthly price per cubic foot from January to September was £ 0.47, but after March 1, it has changed to £ 0.52.

In addition, Amazon plans to introduce more detailed charging levels for storage usage surcharges and charge surcharges to professional sellers with storage usage rates exceeding 22 weeks, effective from June 1, 2024.

3.Low inventory cost coverage fee

Starting from April 1, 2024, the Low Inventory Cost Coverage Fee (Pan EU) will apply to standard size items shipped through the Pan European Amazon logistics program. This, like the US station, is a newly added charging item that will be triggered when the historical supply days are less than 28, which means the inventory unit is consistently lower compared to sales.

When there is a shortage of goods or other special circumstances, this fee will not be charged.

4.Return processing fee

Starting from October 1, 2024, Amazon will impose a return processing fee on high return rate products in categories other than shoes and clothing. The specific threshold for each category will be announced on August 1st 2014.

5.Sales rebate

Starting from March 1, 2014, Amazon will continue to offer a 10% sales commission rebate to the parent ASINs of newly added eligible brands.
Non branded parent products can also enjoy rebates if they meet the conditions. For example, non branded oversized products that meet the conditions can enjoy a maximum discount of 50 items per parent product, with a validity period of 120 days.

6.In 2014, VINE registration fees and inventory performance index scores will also be reduced.

The various explanations provided by Amazon Europe are complex and detailed, and like the US site, some fees have also been added, and some project fees are also on the rise.

Among them, the increase in low inventory fees and the refinement of inventory surcharges have further improved the requirements for sellers’ inventory management capabilities. In the future, more refined operations will be needed, and sellers will also need to “budget carefully”.

On the European site, Amazon did not lower the commission rate for clothing products below $20, as it did on the US site. It is unclear whether this is because Amazon is more adept in Europe. After all, TikTok’s small store business in Europe has yet to expand, and its momentum is not as strong as in Southeast Asia. Temu only entered the European market in April this year, much later than entering the US market. Although it has repeatedly ranked first in download volume, it is far less deeply rooted than Amazon.
However, facing the annual adjustment of various fees within the platform and the strong attack from external low-priced platforms, Amazon sellers will face even more difficulties.

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