Big Changes Coming To Amazon Fees | The Economic Ninja

It Amazon collects over $140,000,000,000 in annual fees from sellers. Now many people are fuming over crazy new fees that they say tighten Amazon’s grip on their businesses. Hello everyone, economic ninja here. I hope you’re doing well. The heart of small town America is being attacked. Small and median businesses around the country are being destroyed by larger companies and we have to put a stop to this. I encourage people all the time when I say the best time to start a business is when the economy turns down.

And right now the economy is taking a downward spiral and it’s going to keep going down for the next few years. And what is important about knowing that is it’s a great time to start a business. Most businesses started like Amazon during hard times, during a recession in the early 90s when Jeff Bezos started selling books on Amazon and it grew. When you start a small business, it can explode during a downtime because you’re already going through the hard knocks and you don’t honestly know any better.

And as long as you start small and meek, you will absolutely crush it. Let me get into the story, but real quick. There’s 50% off discount links to the side hustle course. How to start a side hustle or a business? I take you from garage sale to starting a corporation, and we have just started and this is the only month they’re going to be allowed. Group coaching calls start this month at a discounted rate of $79.

They go up after the month of March. So if you want to check it out, there you go. Here we go. The story’s out of fortune says things are about to get more complicated for many Amazon sellers, and Amazon customers may pay the price, literally. Over the next month, Amazon is implementing the latest in a series of new fees for businesses that sell goods on Amazon in changes that the company says are designed to speed up shipping speeds for Amazon customers while reducing the cost of such initiatives.

But a half dozen top Amazon sellers told Fortune this week that the new fees are complex and expensive and may force them to overhaul their businesses and seriously consider ceding more control of their supply chain to the tech giant at a time when it is facing a government lawsuit that alleges the company is already abusing its power over these merchants. All of these sellers told Fortune that at least one of the new fees, called the inbound placement service fee, appears designed to pressure merchants to utilize a new Amazon service called AWD, or Amazon warehousing and distribution.

Some of these merchants also said that this fee, coupled with another that Amazon will soon charge for low inventory levels will force them to pass on price increases to Amazon customers. It is becoming increasingly difficult to sell on Amazon, said Albert Grazy, a high rated Amazon seller of seven years who sells around $5 million of water filtration products on Amazon each year through brands like Mist filter line.

You’re getting squeezed from all sides, he says. An Amazon spokesperson, Maria Dix can’t make that up, said in the statement. By splitting what was combined outbound fee into an inbound and outbound fee and adding a low inventory level fee, we will more closely align fees for sellers with our underlying costs, while also providing sellers with more choices for how they use our services, given them more transparency and control over their fulfillment costs.

All I hear is fees, fees, fees. This allows us to create incentives for sellers to use our network more efficiently so we can share the cost savings. Doesn’t that sound nice? All I hear again is fees, fees, fees. And that gets translated to higher costs for you and me. The spokesperson said that many sellers will end up paying Amazon less per unit sold than they did previously. But none of the six top sellers who spoke to Fortune consider that a possibility for their business.

While Amazon is increasingly thought of as a tech giant as much as a retailer and again, I want to take away from this video. I want you to take away this. Amazon started with one guy borrowing money from his parents, selling books out of his please, please understand that so many of you out there watching this or listening to this right now have the ability to start the next Amazon.

You just need the place to start, okay? You need to start that side hustle because you never ever know where it’s going. If it’s just going and buying books with a finger scanner at garage sales and selling them on Amazon, you don’t know where you’re going to be able to take that money and put it into the next side hustle. The next side hustle. I have had over 21 side hustles in my life and they have been amazing.

Building wealth, generational wealth, quite frankly. And that’s why it’s important to start. I’ll put the link down below 50% off how to start the course after 14 days. If you don’t like it and you don’t think that it’s going to make you money and you’re not going to be able to absolutely crush it. If you’ve watched less than 50% of the courses, the lessons, and you go, now, this isn’t for me, I’ll give you your money back.

All right? That’s my promise to you. In recent years, Amazon has extracted a greater cut of sales from the small and mid sized merchants who sell through its site, even as Amazon reliance on these sellers continues to grow. During the final three months of 2023, the proportion of total goods sold through Amazon that came from these sellers, rather than Amazon’s own inventory, crossed the 60% mark for the first time in company history.

At the same time, from 2017 to 2022, the cut of revenue that Amazon takes from these sellers increased from around 40% to around 50%, according to the ecommerce research firm Marketplace Pulse. Sellers pay Amazon fees, listing fees, advertising fees, and in many cases, warehouse, shipping and customer service fees, through a service called fulfillment by Amazon or FBA that assures their items will qualify for prime shipping. Amazon’s third party seller business, known as its marketplace, is also highly profitable, the Federal Trade Commission has alleged.

But just how profitable remains a secret that the company does not disclose. Weird. Look, Amazon knows the tax game, they know the secrecy game, and they know how to make money. But again, it started with one person. Are you the next Jeff Bezos? Let me down, down in the comment section below, because I’m going to be honest with you. I believe you are. But maybe you just lack the confidence.

That’s why most people just don’t start that. And because their idea gets so big, they shut themselves down before they ever try again, failing to start. So are you going to take the action today? Are you going to take actionable action right now to start that sidebuses, to start that side hustle, to turn it into something big, to where you can leave your job and have financial freedom? That’s what I did with my side hustles.

And now I want to teach you. And that’s why I say, hey, after 14 days, if you watch less than half of it and you go, this isn’t for me, this isn’t going to change my life. This isn’t going to make me way more money than I put out for the course. I’ll give your money back. And I’m doing coaching calls now, once a month group coaching calls.

And I’m going to be answering your questions directly. And I’m going to help you get more sales. I’m going to show you how to get more leads. I’m going to show you how to form that company, that business into a company. And you’re going to succeed. Right? You just need the right coach. You need the right mentorship, you just need the right start. So I put the link down below I hope you have a great day.

The economic ninja is out. Bye. .

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