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How Amazon Sellers Can Increase Sales in 2022 to Offset Higher Fees

How Amazon Sellers Can Increase Sales in 2022

The popular market Amazon has recently revealed a brand new Amazon fee structure, which will go into effect on January 18 2022.

The rise in Fulfillment through Amazon (FBA) referral and fulfilment fees will partially offset the higher operating expenses that the company will have to pay in the future to help accommodate its expanding workforce such as fulfilment centres and sporting facilities along with delivery stations as well as regional air hubs throughout all of the United States.

In a statement, amazon said: “Throughout the outbreak, we’ve been working to help you by postponing and limiting fee changes by reducing or eliminating certain charges, such as the ones for returns to customers, and taking on billions of dollars in additional expenses on your behalf as we make significant and needed investment in people, technology transport, infrastructure, and transportation. As you’ve read in the media and probably experienced yourself that costs are increasing and we’re now required to alter the fee structure for next year in order to deal with the rising costs.”

In 2022, the Amazon fee increase comes eight months following the Amazon FBA fee hike for sellers that was implemented in June of the previous year. However, Amazon has stated that despite the change in fees for Amazon FBA fulfilment fee structure and the 2022 Amazon pricing structure for sellers will be 30% less than fulfilling orders in-house.

How much are Amazon sellers charges? What are the costs for becoming an Amazon FBA seller in 2022? Our Amazon marketing agency has the answer to all of these questions and many more questions that will help comprehend what’s new in the Amazon FBA selling fee structures. Learn more about the changes you can make to adapt to FBA’s Fulfillment by Amazon fee updates and then move with Pak Marketing Point in this highly competitive market.

What Are Amazon Seller Fees?

An Amazon fee is the cost associated with selling on Amazon. Sellers must enrol as part of Amazon Business Seller to be enrolled in the Amazon Business Seller program to decide what monthly charges for membership and any other Amazon seller account charges apply to them.

You may be asking whether Amazon’s fees are comparable to other payment plans, what exactly are Amazon seller charges and what makes them different?

Other marketplaces such as eBay typically provide a fulfilment option for sellers who are third parties. You can choose to either send orders by yourself or use an outside fulfilment company to assist you. This way sellers are typically only responsible for the listings of their products and post-sales.

Amazon in contrast offers a range of fulfilment options, with the corresponding Amazon seller account charges:

1. Basic Amazon Plans

Based on the expected monthly sales, Amazon offers two plans that you can select from: The Professional Selling Plan and the Individual Selling Plan.

A. Professional Selling Plan

This plan is designed for sellers who plan to sell 100 or more items each month. Sellers who have signed up to this plan must pay for the Professional Selling Plan must pay Amazon seller account charges of $39.99 per month.

B. Individual Selling Plan

This plan is geared towards small-scale retailers selling less than 40 products per month. Amazon doesn’t charge per-month individual sellers Amazon fees. However, sellers have to pay a $0.99 fee per item sold.

2. Fulfillment by Amazon (FBA)

With this program, Amazon handles everything from packaging and storage until shipping your goods. The Amazon FBA fulfilment fee covers the costs of storage, picking packages for shipping, in addition to providing customer service for the products sold, including the removal or disposal of inventory, and processing returns of products.

Amazon FBA fulfilment fees vary according to the size of the range, beginning at $2.70 per item for non-apparel products and $3 for clothing for storage of inventory.

To decide whether FBA is the right choice for the right person, Amazon has an Amazon seller fees calculator that will assist you in comparing the costs of making orders on your own, vs. making use of Amazon’s service.

3. Referral Fees

For each product you sell through your Amazon market, Amazon deducts an applicable referral fee. The values that are used to calculate your fee for referrals include prices of the product, delivery charges and gift-wrapping fees (if appropriate) and the product’s category. The majority of referral fees range from 8-15 per cent of your sales.

4. Advertising Fees

Amazon provides advertising options in its marketplace. Based on your needs and the purpose of your purchase, you may select between 1) Sponsored Products ads, 2) Sponsored Brands ads and 3) Stores ads. The cost of each of the Amazon paid-per-click (PPC) advertising types is dependent on the type of format you select and your location. Make sure you consult an Amazon marketing agency to decide the Amazon PPC strategy that will increase exposure and sales.

Amazon Seller Central fees vary depending on various factors, including your sales strategy as well as your fulfilment strategy and category. Utilize this Amazon fee calculator for sellers to calculate your Amazon central seller costs and get an approximate estimate of your margin for sales.

How Much Does It Cost To Sell on Amazon in 2022?

On the 18th of January, 2022 changes to the Amazon central fees for sellers will be in effect. Here’s the overview of 2022’s Amazon fees for sellers:

  • Amazon FBA fulfillment fees will rise by 5.2 percent per year on average.
  • The greater unit weight or dimensional weight is determined as the ship weight of the bulky size products except for clothing.
  • The fees for disposal and removal will also rise. However, liquidation charges are the same.
  • A rise in the off-peak monthly storage cost (January-September) for standard-sized and oversize items will begin. The storage fee for February 2022 will be included in the March 2022 fees. The storage fee for peak periods (October-December) are expected to remain the same.
  • An escalating rate for storage costs will be implemented as a surcharge to the top of monthly storage costs. This will also include a storage charge for inventory that is stored between 27 and 365 days. The new rules will go into effect on May 15th, 2022.
  • FBA Prep service fees will be increased to reflect operational costs associated with the taping, labeling, and bagging. Further details will be made public in Q1 2022.
  • The weight limit for products that are part of the FBA Small and Light program will be increased from 12 oz. pounds.

FBA Grade and Resell

  • FBA Grade and Resell is Amazon’s exclusive invitation-only program. In the first quarter of 2022, FBA Grade, and Resell along with fees be introduced to enable sellers to recover the value of returned products by grading them the items and billing them under used items.

Amazon Referral Fees

  • The fees for referrals for snow throwers and lawn mowers will be reduced between 15 and 8 percent when the product that have a value greater than $500.
  • Other U.S. referral fees will remain the same.

U.S. FBA New Selection Program

  • The program will offer no cost liquidations for a specified time period and the amount of units for eligible products. The changes will be in effect in the end of December 2021.
  • Amazon will provide a 5 percent discount on sales for parents-ASINs that are eligible for new-to-FBA, for an exact time frame and number of units. This rebate is available for Amazon FBA sellers who completed the Brand Registry. Further details will be released in the first quarter of 2022.

New Seller Starter Pack

  • Amazon is launching a brand new program known as “New Seller Starter Pack,” that aims to assist new Amazon sellers expand their businesses in the first year.
  • The new Seller Starter Pack covers several benefits that are available during a certain time. Sellers who are eligible to join this Brand Registry will receive monthly bonuses. Further details will be announced in Q1 2022.

How to Boost Amazon Sales in 2022

Despite the ease and variety of opportunities for marketing Amazon provides, it can still be a challenge to make it in the role of an Amazon seller. Large brands and even sellers who do not pay monthly seller Amazon fees are up against stiff competitors on a regular basis.

To stand out among the more than 2 million sellers who are active on Amazon and to reach your revenue targets you must step the playing field of your Amazon marketing plan.

Here are some practical ways to boost the amount of your Amazon revenue and help offset more expensive fees for FBA, professional and individual seller Amazon costs in 2022:

1. Optimize Your Product Listings

Make use of the data-driven amazon SEO services to make an efficient and well-optimized product listing. Amazon Product listing optimization is crucial to improving your visibility and getting at the top of Amazon’s search engine. Amazon results page.

To make sure that more people visit your site to increase the number of clicks on your listing, you must:

  • Choose relevant keywords.
  • Choose the correct product categories to stock your inventory.
  • Avoid duplicate product pages.
  • Use effective product titles.
  • Craft informative, engaging product descriptions.
  • Make use of bullets to emphasize advantages and features of your product.
  • Use customer reviews to leverage ratings.
  • Make sure to use high-quality images of the product.

2. Analyze Your Product Level Profitability

Make the most of the potential of the Amazon selling fees calculator and calculate the costs associated with listing and develop an efficient budgeting strategy based on data. After you’ve established a sensible marketing budget, look at each item in your product range and determine which offer the highest margins of profit. This way you can target your advertising and marketing efforts on products that have high profits.

3. Optimize Your Amazon Brand Store

Display your unique brand story through Your Amazon Brand Store and get your products seen by an audience that is larger.

Amazon Brand Store is a smaller, more customizable variant of the Amazon website specifically for your company. It allows you to display your most popular products, tell your story as a brand and provide your potential customers with a glimpse into the workings of your company.

A customized Amazon Brand Store makes a perfect site to use for Amazon Ads or offsite advertising because it lets shoppers browse through your entire catalogue of items without being distracted by other competitors.

Keep in mind that you must be a part of the Amazon Brand Registry to create an Amazon Brand Store. After you’ve been accepted for the Amazon Brand Registry, the next step is to create the store to allow for simple browsing and a great customer experience. Some suggestions for this are like this:

Make sure you use high-quality videos and images.

  • Create a compelling brand story.
  • Find and identify your customers’ possible issues with helpful suggestions and/or directions regarding product assembly and use.
  • Keep track of your performance with analytics.
  • Optimize your store’s design to be mobile-friendly.
  • Make use of the Q&A section in order to answer customer questions Keep your design simple.
  • Prioritize the customer experience (CX).

4. Craft Amazon Content That Converts

A+ Content (formerly known as Enhanced Brand Content) is accessible to all registered Amazon Brand Professional Sellers.

It incorporates precise descriptions of products, high-quality images, and comparison charts to assist customers in making informed purchasing choices. A+ content is among the most efficient ways to establish trust with your customers. Get a high ranking in Amazon search results, and increase sales conversions by more than 20 per cent.

Content from Strategic A+ includes:

  • Images that are diverse and multiple of your products
  • Short and informative product descriptions
  • Product scan able, clear specifications, features and benefits

A/B testing is crucial to improving the quality of your content. If you’re not sure how you can do split tests, joining forces with an Amazon seller consulting firm is the best choice. A trustworthy Amazon marketing company makes use of the power of data analysis and give you suggestions and growth-oriented tips for making highly converting and content.

5. Make Use of Amazon Posts

Amazon Posts is a free tool that permits sellers who are qualified to increase customer engagement by providing an interactive browsing experience based on images. Through Posts, users can browse for relevant content about your brand that illustrates your brand’s unique values and story, and also demonstrates the features and use of your product.

To get people interested in the readers of your Amazon Posts, focused Amazon Posts management is vital. Additionally, compliance with Amazon’s post’s creative Acceptance Guidelines is required for your post to be published.

A few tips:

  • Use attractive and visually appealing backgrounds
  • Do not use collaged images and text overlaid with
  • Continue to build on your visual story
  • Keep the images clear Share real-life photos of customers
  • Create unique product descriptions
  • Establish social proof by utilizing review and rating of customer experiences
  • Measure the performance of your Posts

6. Leverage Amazon PPC Advertising

Alongside Amazon SEO services, an important element to achieve Amazon increase in revenue includes Amazon advertising. A solid Amazon PPC strategy involves:

  • Defining your target audience
  • Utilizing advanced long-tails and the most effective keywords
  • Launching ads for Sponsored Brands to boost brand recognition
  • Continuously monitoring, analysis,, and the optimization of ads
  • Set competitive bids

7. Use Social Media and Google Ads to Drive Amazon Sales

By participating in The Amazon Attribution and Brand Referral Bonus program, Amazon Brand Registered Professional Sellers are able to get back referral fees from ads off-channel that generate purchases on Amazon.
How does it work?

Brand Registered Sellers are required to sign up for Amazon Attribution and the Brand Referral Bonus Program.

  • Sellers (or Amazon Agency Partners) create codes with Amazon Attribution to append to paid ads like Google Shopping ads, social media ads, emails, and more.
  • If a user clicks on an advertisement which leads to a sale, Amazon will return an average 10% of the purchase to the retailer. Any sales that are made through this brand that occur within 14 days of the time the ad has been clicked will be given the credit of 10 percent.
  • Credits will be credited to the Seller Account once the 60-day period for return is over.

Offsite advertisements can be evaluated for efficiency and effectiveness with an Amazon Attribution console. With this, sellers are able to see clicks, page views as well as adds-to-carts and purchases which result from advertisements.

Enhance Your Brand Messaging and Supercharge Your Amazon Sales

Amazon marketing is difficult especially if you do not have the experience, knowledge and resources to be able to change to the changing market structure. If you don’t take advantage of your marketing and branding efforts to risk losing customers to your competition. Even worse, you could end up spending a significant amount of money spending Amazon fees, but not getting an ROI (ROI).

Don’t let this happen for your company. Work with an expert Amazon seller consultant to develop an Amazon marketing strategy that is guaranteed for your business to rise to the next level.

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