Report: Sellers in two of Amazon’s high-growth categories get hit with new fees

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Report: Sellers in two of Amazon’s high-growth categories get hit with new fees

By CSA Staff - 01/23/2018
Days after raising the cost of its monthly Prime program, Amazon is raising fees again — but these new costs target some third-party sellers.

The online giant quietly raised seller fees for several categories across the apparel and accessories space. These increases give Amazon a larger percentage of the sale it takes from third parties, according to Business Insider.

As of April 15, the fee for the clothing and accessories category will rise from 15% to 17%, and handbags and sunglasses category fees will increase from 15% to 18% for merchandise priced above $75. Merchandise under $75 will still be charged the current 15% rate, according to Nomura Instinet.

Fees on jewelry items also changed. As of February 22, Amazon currently charges 20% for items up to $250. Merchandise over $250 will be decreased to a 5% charge.This rate is valid for one year, Nomura Instinet said.

Apparel now sets the highest seller fee for non-Amazon-related items -- a move that could pave the way for future increases among more of Amazon's growing and high-margin third-party segments, according to the report.

The fees could also be a way for Amazon to dissuade third-party sellers, and increase prominence of its own apparel offerings. Another theory is that despite the increases, Amazon’s sellers will continue partnering with Amazon due to the e-retailer’s strength in selling apparel, according to Business Insider.

The new fees come on the heels of another price increase: the e-retailer’s decision to raise the monthly membership cost of Amazon Prime. The program’s monthly subscription fee jumped from $10.99 per month to $12.99 per month. (The student rate has risen from $5.49 per month to $6.49.) The annual cost remains unchanged at $99 ($49 for students).

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