The Amazon Analytics Insider December 2023
TL;DR
Amazon is suing international fraud ring REKK for stealing millions through fake returns, accusing them of bribery, data manipulation, and empty boxes.
Amazon is raising Multi-Channel Fulfillment fees by 3.5%, introducing new size tiers, and charging sellers for both too much and too little inventory, impacting fulfillment cost for sellers.
Amazon is rolling out new requirements for non-media, non-digital, and non-handmade product listings between December 11, 2023 and February 1, 2024, information about which will be available on the "Add products" page and "Add products via upload" function as changes occur.
Amazon cuts clothing transaction fees to 5% for items under $15 to compete with Shein
Amazon has started proactively deleting fake negative reviews from seller listings, offering relief to sellers against manipulative competition.
Amazon Sues “REKK” - International Return Fraud Company
Amazon filed a lawsuit against an international fraud organization called REKK for stealing millions of dollars worth of products through fake refund schemes. REKK allegedly tricked Amazon into processing refunds for products that were never returned, using methods like bribing employees, manipulating tracking data, and returning empty boxes. The lawsuit targets REKK operators, former Amazon employees complicit in the scheme, and individuals who used REKK's services.
MCF & FBA Fee Changes + New “Low Inventory” Fee
On February 5, 2024 Amazon will be raising Multi-Channel Fulfillment (MCF) fees for sellers by an average of 3.5%.
Amazon claims this increase is still below the average for other carriers. Fees for units under 1 lb will remain unchanged or decrease. Amazon is also introducing new size tiers, including a smaller 4 oz tier and larger tiers to replace the Oversize category.
New FBA fees were also announced this week.
Amazon will soon charge sellers both for having too much inventory and too little inventory stored at its FBA warehouses. The new "low inventory fee" will penalize sellers who don't maintain at least 4 weeks of inventory relative to sales, starting April 1, 2024.
This fee and others are said to be a result of Amazon's recent decision to decentralize its FBA network into 8 regional hubs. Sellers will now be responsible for distributing their inventory to these hubs themselves or paying Amazon to do it. The new fee structure is expected to raise costs for some sellers, but Amazon claims it will also provide them with more transparency and control over their fulfillment costs.
Updated Amazon Listing Requirements
Source: 1
Amazon is starting to change their requirements for all new product listings (except media, digital, and handmade).
Information regarding what exactly is being changed has not yet been released, as these changes are expected to gradually roll out between December 11, 2023 and February 1, 2024. As changes come out, Sellers will notice them appear in the requirements list on the "Add products" page and the "Add products via upload" function
Amazon Reduces Select Apparel Transaction Fees
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In response to competition from Shein, Amazon is significantly reducing its transaction fees from 17% to 5% for clothing items priced under $15. For items between $15 and $20, Amazon is cutting its referral fee from 17% to 10%. More expensive items will continue to incur the original 17% referral fee.
This reduction is intended to theoretically allow sellers to lower their prices by a few dollars while still maintaining their profit margin. However, even after the reduction, Amazon is likely to remain more expensive than Shein due to higher fulfillment costs and Shein's direct shipping model.
Amazon removing “Bad Actor Reviews”
Source: 1
A bit of good news from the seller forums regarding false reviews from bad actors - multiple sellers have reported receiving alerts from Amazon, letting them know that Amazon has deleted fake negative reviews on their listings that have been identified as being posted by other competing sellers.
Amazon seems to detect these reviews independently, without sellers having to submit any documentation or requests. This is a great update in a problem that has been plaguing many sellers for awhile; and is especially important since Amazon has released their AI generated review summaries. Hopefully Amazon keeps this initiative and similar efforts a priority for the future.
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