Newsletter - November 2024
As Autumn grows older , it's the perfect time to give thanks and give back.
It's also Amazon's 12 Days of Black Friday Event.
Kicking off 7 days before Thanksgiving and extending 5 days beyond, straight into Cyber Monday. The selling season has lengthened, for better or worse.
Article #1: hold the presses – are pigs flying - Amazon is NOT increasing fees for 2025
They must've heard the grumbling from the sellers because they have decided to hold on fee increases.
Amazon’s Fee Update for 2025: Stability, Simplicity, and Savings for Sellers As we look back on 2024, Amazon’s partnership with sellers led to record-breaking sales and significant enhancements in customer experience. For 2025, Amazon is prioritizing simplicity and stability, aiming to reduce your operational burdens and costs.No Fee Increases in 2025: Amazon has committed to not raising referral or FBA fees in the U.S. and will also lower some costs while providing more benefits for new selection growth.Key Updates for 2025:
Reduced inbound placement fees for bulky products.
Waived fees for new ASINs in the FBA New Selection Program.
New incentives for adding high-demand products and expanding popular brands.
Amazon continues to innovate for sellers, including enhanced tools for fee calculation, efficient inbound shipping, and expanded seller benefits—all focused on making it easier for you to succeed.For more details on the 2025 fee changes, visit amazon.com/selling-fee-changes.
Article #2: AWD - Amazon Warehousing & Distribution
The team and I had a call with the Amazon team. Capital-intensive operations are Amazon's jam, and AWD fits right in. They're working to make the supply chain more vertically integrated: Regional Distribution Centers feed Intermediate Warehouses, which then handle replenishment or order fulfillment.
Amazon is heavily supporting this program, and they'll keep adding value by two routes: increasing the challenges for those not using AWD, and reducing headaches and costs for those who do.
Who Should Use AWD?
As of today, AWD isn't for everyone, but for sellers dealing with customs, mixed pallets, and international logistics, it's a valuable tool. You can send mixed pallets without worrying about allocation—critical for customs. If customs cuts open your shipment and mixes the units, AWD ensures it all gets sorted smoothly, avoiding logistical issues.
Another perk? Avoiding inventory placement fees. AWD lets you send mixed pallets in, bypassing some costs. But remember, you'll still pay referral and storage fees once products move to fulfillment centers. Best practice: keep 8-12 weeks of inventory in AWD to ensure smooth replenishment.
Our Thoughts?
We do plan to explore it heavily for our clients and see how allocation of inventory there can help improve total profitability.
Why AWD Stands Out
Mixed Pallets: Send in mixed pallets without added stress.
Avoid Placement Fees: Save on fees and streamline inventory.
Customs Solution: Border Patrol and Customs mixing up your shipments? AWD provides the flexibility to adjust
For sellers facing complex logistics, AWD provides a practical advantage. Learn more here: Amazon Warehousing & Distribution.
Happy Thanksgiving!
