Amazon has informed sellers that it plans to increase fees for selling products on its marketplace platform effective January 18, 2022.
The company justified the fee increases by saying it has doubled its execution capacity in the United States since the start of the pandemic, spending more than $ 15 billion on expansion projects, including salaries.
Amazon says it has hired more than 628,000 people and opened more than 350 new distribution centers, sorting centers, regional air hubs and delivery stations in the United States.
In addition, the company is trying to add 150,000 more people to the United States alone to bolster its resources during the busy holiday season.
“Throughout the pandemic, we have worked to support you – by postponing and keeping fee changes low, reducing or eliminating certain fees like those for customer returns and absorbing billions of dollars in increased costs. on your behalf – while making significant and necessary investments in people. , technology, transport and infrastructure.
Amazon still cheaper than its competitors
In particular, sellers using the Amazon FBA program will see significant fee adjustments that the company says are necessary due to the higher ongoing operating costs to operate its logistics network.
However, he also estimates that sellers using the Amazon FBA service still save over 30% compared to fulfilling the orders themselves when using competing logistics service providers. And the company has argued that it offers a superior delivery service experience compared to other logistics operators because its network allows it to offer faster delivery for most orders.
While Amazon didn’t provide an average percentage increase in fees, it appears to be mostly lower than UPS, FedEx, and DHL, all of which have announced an average rate adjustment of 5.9% for 2022.
The USPS hasn’t announced any new postage increases for 2022 after suffering two rounds of them in 2021, but it looks like the money the Postal Service is probably spending on upgrading its network for handle more packages.
Here are the links to the fee increases announced by Amazon for each service:
Note: External links require an active Amazon seller account to view expected price adjustments.
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