Comments on: Amazon Sellers Paying 30% More in Fees Since 2021 – Q4 Earnings Report

By: Dave Bryant

Dave Bryant — Wed, 17 Apr 2024 04:17:26 +0000

Thanks for helping add more definition to the line items. This will be adjusted for Q1 earnings in 2024.

With that being said, I’ll have to let it marinate for a bit, but let’s say 1p sales are $76,703 and 3p sales are roughly $69,504. Many 1p sellers don’t pay advertising costs (some do, but a good chunk/most? do not) but rather have a ‘co-op’ fee deducted. If this co-op fee is not showing in ‘advertising costs’ then advertising as a percentage of 3p revenue could actually be higher as a percentage.

Regardless, the estimates are far from perfect given the lack of transparency for many of the line items and comments like this are extremely useful.

By: Scott Granowski

Scott Granowski — Sat, 30 Mar 2024 23:09:44 +0000

Actually the issue is a little more complex and the article requires a rewording. AMZN does not use the phrase “revenue,” but “net sales” which AMZN defines as “Net sales include product and service sales.” The Total Net Sales for Q424 was $169,961 and that breaks into Product Sales of $76,703 and Service Sales of $93,258. The Product Sales is made up of Online and Physical Stores in which AMZN takes ownership and sells the product. The Service Sales, which are made up of Third Party Sellers, Advertising, Subscriptions, AWS ($24,204) and Other, does not. Your category of “e-commerce” naturally excludes AWS of 14.2% and also Physical stores of $5152 or 3.0% for a total of 82.8% (near your 82.4%) or $140,604. However, advertising of $14,654 is then 10.4% (not 20.7%) of “e-commerce” revenues (and that assumes AWS does not advertise). The same analysis goes for other costs. That said, your article points to a pattern with AMZN increasingly relying on Third Party Sellers and Advertising. Thank you for pointing that out!

By: John R.

John R. — Tue, 06 Feb 2024 00:37:25 +0000

In reply to Clifford Donovan. I am an Amazon seller since 2009. We pay 67% of our gross sales on Amazon to Amazon fees currently. This is up from 30% when we started. Amazon will be putting many US seller out of business in the next few years. This is straight correct.

By: Dave Bryant

Dave Bryant — Sun, 04 Feb 2024 08:11:12 +0000

In reply to Clifford Donovan. Yes, there was some poor choice of wording that has been adjusted. For better or worse, these broad line items make it impossible to determine a true average for sellers. More emphasis should have been placed on FBA fees/advertising being up 30% over 2 years which is a fair assessment of the impact on an average seller from a fairly opaque earnings report.

By: Clifford Donovan

Clifford Donovan — Sat, 03 Feb 2024 04:06:14 +0000

Amazon making 61% of their marketplace revenue from 3P seller fees does not mean that individual sellers pay 61% to fees.

This is just straight wrong.