Detailed explanation of Amazon clothing commission adjustment and product commission ratio: opportunities and challenges for sellers

Amazon continues to strive to optimize the seller experience. The recently launched clothing commission adjustment policy will take effect on January 15, 2024. This policy has brought many benefits to sellers of clothing products priced below US$20. beneficial changes.

Objects and calculation of commission adjustment

Amazon’s commission policy is adjusted for products in different price ranges, as follows:

• Clothing products priced below $15 or between $15 and $20 will enjoy the new commission rate.
• The calculation of commission includes the actual product price paid by the consumer, related shipping costs and gift wrapping costs. For example, if the seller sells women’s dress product A priced at $10, a 5% commission rate will be applied, while product B priced at $20 will maintain the framed commission rate.

Application scope and product fee classification

This commission adjustment policy applies to Amazon’s “Apparel & Accessories” category. Sellers can check the product fee classification in the inventory management section of Amazon Seller Central. Importantly, the product fee classification may be different from the classification displayed on the Amazon retail website.

Effective time and additional offers

This commission policy will be effective from January 15, 2024. In addition, starting from March 1, 2024, Amazon Logistics (FBA) warehousing configuration service fees will be officially charged. Products previously warehoused do not need to pay relevant fees. Sellers can speed up the warehousing of goods during this period to reduce fulfillment costs. .

Universal standards for Amazon product commissions

Regarding Amazon product commission standards, the commission rate for most products is 15%. However, product commission rates vary by category, for example:

• Amazon device accessories commission up to 45%;
• For maternal and infant products, if the sales price is less than US$10, a commission of 8% will be charged, and for products over US$10, the commission will be 15%;
• Including luggage, travel supplies, shoes and other products, the commission rate is 15%.

These standards are based on a variety of factors, including market conditions, marketing strategies, product quality, etc. Sellers should clearly understand the applicable commissions when uploading products to ensure that pricing is not compromised.

Suggestions for sellers to adjust strategies

To sum up, Amazon’s clothing commission adjustment policy and the diversity of product commission ratios provide sellers with opportunities to reduce sales costs and increase profits. Sellers should make full use of the upcoming commission adjustment policy and other preferential plans and integrate them into their sales strategies to achieve better sales performance.