This episode delivers critical updates for Amazon sellers, focusing on recent policy changes and their financial implications. It covers Amazon's minimum wage hike and its potential impact on seller fees, significant increases in FBA storage costs, and a crucial update on Amazon's review policy. The hosts also discuss the expanding sales tax collection by states post-Wayfair and efforts to advocate for online merchants. A must-listen for Amazon sellers to understand and adapt to evolving operational and financial landscapes.
Key takeaways
Analyze the updated Amazon storage fees carefully; consider leveraging 3PLs in conjunction with or as an alternative to FBA, especially for long-term storage or Q4 inventory, to mitigate rising costs.
Proactively read the latest Amazon reviews policy within Seller Central to understand new sanctions and ensure full compliance, avoiding potential penalties.
Stay informed and potentially engaged with organizations like the Online Merchants Guild regarding the ongoing sales tax landscape, as more states implement collection and federal legislation is being pursued for small business protection.
Be prepared for potential increases in Amazon seller fees as a result of the company's minimum wage hike, and factor this into your Q1 2019 financial planning and pricing strategies.
Review your inventory management strategy to minimize long-term storage fees and optimize Q4 inventory levels to avoid disproportionate costs.
It's been a hot minute since Dave and I sat down and did a podcast focused solely on discussing news and updates from Amazon. And so that's what we did for this particular episode. Here's what we covered. Amazon Raises Employee's Min Wage to $15 (for US and UK) The company's move to raise the minimum wage was lauded by critics but there's a fear that the cost will trickle down to third-party sellers by the beginning of next year. Increase in long-term and Q4 storage fees Amazon storage fees appear deceptively cheap but if you do the math, they could potentially cost 10 times the amount of what a 3PL would normally charge. You'll find a table comparing the old and new storage fees here. If possible, we recommend using a 3PL and Amazon fulfillment. Update to reviews policy The latest announcement basically clarifies on the sanctions a seller can receive for violating the updated review policy. Log in to your Seller Central account and read the verbiage. States collecting Sales Tax A couple more states have joined South Dakota in pursuing sales tax collection for online sellers. We are actively fighting this via the Online Merchants Guild and have plans to take the fight for this "undue burden" to federal court. A hope in the horizon comes in the form of a Congress bill specifying that compliance should be <a href= "https://www.digitalcommerce360.com/2018/09/17/a-new-online-sales-tax-bill-would-create-a-10-million-small-business-e
What does this episode say about amazon & marketplaces?
Analyze the updated Amazon storage fees carefully; consider leveraging 3PLs in conjunction with or as an alternative to FBA, especially for long-term storage or Q4 inventory, to mitigate rising costs.
What does this episode say about supply chain & operations?
Proactively read the latest Amazon reviews policy within Seller Central to understand new sanctions and ensure full compliance, avoiding potential penalties.
What does this episode say about finance & fundraising?
Stay informed and potentially engaged with organizations like the Online Merchants Guild regarding the ongoing sales tax landscape, as more states implement collection and federal legislation is being pursued for small business protection.
What does this episode say about amazon & marketplaces?
Be prepared for potential increases in Amazon seller fees as a result of the company's minimum wage hike, and factor this into your Q1 2019 financial planning and pricing strategies.
What does this episode say about amazon & marketplaces?
Review your inventory management strategy to minimize long-term storage fees and optimize Q4 inventory levels to avoid disproportionate costs.
