(Post from February 2018 – check current terms on Amazon.com)
Good things happen in the jewelry eCommerce! While the latest update by Amazon is not necessarily positive for all Amazon marketplace sellers, jewelry sellers were definitely glad to receive it. Starting February 22, Amazon reduces fees on selling jewelry on its marketplace, by lowering the current flat 20% fee to 5% for any portion of the total price greater than $250. This change is a critical news for the fine jewelry sellers, making selling on Amazon much more affordable, and the jewelry more attractive to the Amazon buyers.
Additional effect of this change is that Amazon becomes more relevant for multi-channel eCommerce. Till now, Amazon had the highest in the online industry (compared to 9.25% by eBay, 4% by Etsy etc.) With that, Amazon’s policy requires sellers to offer their jewelry at the prices not higher than 10% than on any other online channels. This requirement made offering attractive prices on other channel almost impossible. Jewelry sellers looking to sell jewelry on Amazon were pressed to sell on Amazon only, or to violate the marketplace policy to stay competitive on additional online marketplaces. With the recent change, fine jewelry sellers can offer more relevant prices on additional markets, while complying with the Amazon’s rules.
This is the recent email with update sellers received from Amazon:
Dear seller,
Starting on February 22, 2018 (midnight PST), we will reduce the Referral fee for eligible Jewelry items for one year. We will also increase the Referral fee for Clothing & Accessories and eligible products in Shoes, Handbags & Sunglasses starting on April 15, 2018 (midnight PST).
Current Referral fees:
- Jewelry : 20% of the total sales price, with a minimum fee of $2.00 per item.
- Shoes, Handbags & Sunglasses : 15% of the total sales price, with a minimum fee of $1.00 per item.
- Clothing & Accessories – 15% of the total sales price, with a minimum fee of $1.00 per item.
New Referral fees:
- Jewelry : 20% on the portion of the total sales price up to $250, and 5% for any portion of the total price greater than $250, with a minimum fee of $2.00 per item. This fee reduction will take effect on February 22, 2018 (midnight PST), and last until February 21, 2019 (11:59 PM PST). Starting on February 22, 2019 (midnight PST), the Referral fee will go back to 20% of the total sales price, with a minimum fee of $2.00 per item.
- Shoes, Handbags & Sunglasses : 15% on items with a total sales price up to $75, and 18% on items with a total sales price greater than $75, with a minimum fee of $1.00 per item. This change will take effect on April 15, 2018 (midnight PST).
- Clothing & Accessories : 17% of the total sales price, with a minimum fee of $1.00 per item. This change will take effect at on April 15, 2018 (midnight PST).
Examples:
- On a Jewelry item with a total sales price of $200, the referral fee will be $40.00, calculated as 20% of the total sales price.
- On a Jewelry item with a total sales price of $750, the referral fee will be $75, calculated as 20% of the total sales price up to $250 ($50), and 5% on the portion above $250 ($25).
- On Shoes, Handbags & Sunglasses with a total sales price of $75, the referral fee will be $11.25, calculated as 15% of the total sales price.
- On Shoes, Handbags & Sunglasses with a total sales price of $100, the referral fee will be $18.00, calculated as 18% of the total sales price.
- On a Clothing & Accessories item with a total sales price of $20, the referral fee will be $3.40, calculated as 17% of the total sales price.
For all products, Amazon deducts the greater of the applicable Referral fee percentage or applicable per-item minimum Referral fee. Referral fees are calculated on the total sales price excluding any taxes calculated through Amazon tax calculation services. The total sales price is the total amount paid by the buyer, including the item price, and any delivery or gift wrapping charges.
Regards,
Amazon Services
Seeing Amazon as one of the major jewelry eCommerce players, we at Valigara welcome these changes and believe they will add more to the jewelry eCommerce, and take the selling jewelry on Amazon to the next level!
Enjoy selling,
Valigara Team
