Weekly Amazon Seller News – March 23rd, 2021

“Update to Amazon US referral and FBA fees: Effective June 1, 2021” (Source: Amazon News) 

• In 2020, Amazon increased square footage across the fulfillment and logistics network by 50% and they built 250 tools and services to help manage and grow businesses. 
• In December, Amazon made the decision to postpone the annual fee adjustments until the spring of 2021 to provide stability and support through a challenging winter. 
• While many other companies passed along 2020 costs through surcharges and fee changes, Amazon absorbed over $5 billion in COVID-related costs on behalf of sellers, and are absorbing billions more in the first half of 2021.
• Now, as vaccines are being distributed and there’s a path to normalcy, the next fee adjustment in the US has been scheduled for June 1, 2021. 
• Most referral fees will not change, and Amazon’s making only modest increases (about 2-3% on average) to fulfillment fees, in line with or below industry averages. 
• They will also reduce certain fees, like the returns processing fee, which reflects feedback they have received from sellers and their continued efforts to reduce costs.
• Please review the fee change highlights and links to the more detailed fee pages in Seller Central. These changes will take effect June 1, 2021, except where otherwise noted.
• Read the full article here

“Amazon Prime Day Is On for 2021” (Source: eCommerceBytes) 

• Amazon began informing sellers in the UK about Prime Day last week, including a post on the Amazon UK Seller Central board.
• While Amazon keeps the exact date a secret until much closer to the event, it must inform sellers of deadlines for submitting deals. 
• In the UK, the deadline for submitting Prime Day Lighting Deals is April 23rd, and May 28, 2021 for Prime Member Voucher. 
• One vendor said they’re seeing most of their clients showing Prime Day Deals opening up between March 22 – May 9.
• The company also took a stab at guessing the date of the 2021 Prime Day: July 5 & 6 or July 12 & 13.
• There may be a mad scramble to get inventory into Fulfillment Center warehouses as Prime Day approaches, so inventory planning is crucial for FBA sellers in the spring, whether or not you’re participating in Prime Day deals.
• Read the full article here 

“Product Documents program” (Source: Amazon News)

• Brand owners can now upload product documents including installation manuals, compatibility guides, and troubleshooting guides so that they will be available to customers on the product detail pages. 
• Customers will benefit from this content pre-purchase to make shopping decisions and post purchase to make the most of the products that they buy.
• Brands can reduce customer service calls and product returns, and increase customer satisfaction via this program that is free and open to all brand owners.
• If you are a brand owner, visit Manage Product Documents to get started.
• Read the full article here

“Amazon has added 3,700 new sellers a day this year, as independent merchants become an increasingly important part of the retail giant’s growth” (Source: Business Insider) 

• Research firm Finbold has found that Amazon is drawing in new sellers at a rapid rate.
• In 2021, the online giant attracted 3,700 new merchants a day and as of Sunday, that totalled out to 295,000 new sellers in 2021.
• That’s equal to 155 new merchants every hour. At this rate, Finbold estimated that Amazon could attract 1.4 million new sellers by the end of 2021. 
• A total of 26% of those new sellers are in the United States, while 10.1% are located in India.
• In 2020, Amazon saw a major payoff, as 54% of the company’s net sales of $386 billion that year came from third-party Amazon merchants. 
• Meanwhile, successful Amazon merchants have sold their brands for up to $30 billion, as the COVID-19 pandemic boosted sales.
• Amazon’s success with third-party brands gives the company a major edge over the competition showing lots of potential for new sellers.
• Read the full article here