Amazon is always working to provide a better seller experience and is constantly improving its commission policy to meet the needs of sellers. The latest apparel commission adjustment policy will take effect on January 15, 2024, and will bring a series of advantages and opportunities to apparel sellers with product sales prices below $20. This article will explain the impact and scope of this policy in detail.
1. Commission adjustment objects: products priced < $15 or between $15-20
Amazon calculates the sales commission rate of a product based on the total sales price of a single product, and this total sales price includes the following fees:
The actual price paid by the consumer for the product.
Product-related shipping costs.
Gift wrapping fees.
This means that seller Xiao Ming sells women’s dresses on the US site, and product A is priced at $10 and product B is priced at $20. According to the commission adjustment policy, product A is subject to the latest commission rate of 5%, while product B does not meet the conditions and the commission rate remains unchanged.
If the seller sets a 5% off coupon discount for product B during the peak season, buyer Xiao Wang uses the coupon to place an order for a product and actually pays $19. At this time, the total sales price of product B in this order is still less than $20, so the latest commission rate of 10% applies.
2. Scope of application: Clothing & Accessories product fee category
This commission adjustment policy applies to all products under the “Clothing & Accessories” product fee category. Sellers can select the product they want to query in the “Inventory Management” section of the Amazon Seller Platform, click the “Revenue Calculator> Sales Commission Fees” details page, and view the fee category corresponding to the specific product.
Please note that your product fee category may be different from the category displayed on the Amazon retail website. For example, you can list children’s books under the “Children’s Books” and “Toys” categories on Amazon to help buyers find your products, but their product fee category will only be “Children’s Books”.
3. Effective Date: January 15, 2024
This adjustment policy for apparel commissions will take effect on January 15, 2024 (US time). In addition, it is worth noting that from March 1, 2024 (US time), the Amazon Logistics (FBA) warehousing configuration service fee will officially take effect, but products that are put into storage before this date will not be charged for the time being. Sellers can make full use of this time to speed up the entry of goods into the warehouse to reduce fulfillment costs.
Summary: Amazon’s apparel commission adjustment policy provides sellers with multiple advantages and opportunities. For those apparel products with a sales price of less than $20, this policy will reduce sales costs and increase sales profits. Sellers can also take advantage of reduced commission fees, the Amazon Logistics (FBA) new product warehouse preferential program, and the lower rates of the Amazon Vine program to promote related new products at a lower cost and optimize sales performance. Most importantly, by reducing sales costs, sellers can provide buyers with a richer range of products and better choices, thereby creating more sales opportunities and value.
In addition, new clothing products priced at $15-20 and eligible for the FBA new product warehouse preferential program can enjoy a maximum rebate of 5%, which will further reduce the actual commission paid. For new sellers, there is also an opportunity to enjoy the rebate of the new seller support program, with a 5% discount on the first $1 million in sales, and the actual commission paid can be as low as 0!
In short, Amazon’s apparel commission adjustment policy provides sellers with more opportunities, reduces sales costs, and increases sales profits. This policy will take effect on January 15, 2024. Sellers can fully understand and adjust their sales strategies before then to benefit from this policy change to the greatest extent.