In this episode of The Ecommerce Finance Podcast, Stephen Brown and Liz Adamson discuss the evolving landscape of Amazon fees and the challenges sellers face in 2025. They explore the rising costs of advertising, the complexities of Fulfillment by Amazon (FBA), and the impact of Chinese sellers on the marketplace.
Liz emphasizes the necessity of advertising for success on Amazon and the importance of building a strong brand to compete effectively. The conversation also touches on the implications of Amazon's fee structure and the strategies new sellers should adopt to thrive in this competitive environment.
Sound Bites
"If you're not advertising, you are losing sales."
"Amazon is a pay-to-play environment now."
"FBA is becoming harder and harder for sellers."
Takeaways
- Amazon fees have increased significantly, now taking up to 60% of sales.
- Advertising costs are rising due to increased competition and new ad products.
- Sellers MUST invest in advertising to achieve visibility on Amazon.
- FBA reimbursement changes could impact sellers' margins.
- Sellers need to be aware of their fee structures to manage costs effectively.
- The influx of Chinese sellers is reshaping the competitive landscape on Amazon.
- Building a recognizable brand is crucial for long-term success.
- New sellers should prepare for significant upfront investment in marketing.
- Amazon's fee structure is under scrutiny due to antitrust concerns.
- Sellers must adapt to changes in FBA policies and shipping requirements.
Chapters
00:00 Introduction to Amazon Fees and Ecommerce Landscape
02:29 Rising Costs: Understanding Amazon Fees
05:10 Advertising Strategies for Success on Amazon
07:24 The Importance of Advertising for New Sellers
10:09 Navigating FBA Changes and Challenges
13:09 Inventory Reimbursement Changes and Implications
15:48 FBA Shipment Strategies and Seller Responsibilities
18:39 Current Trends and Future Outlook for Amazon Sellers
20:21 Amazon's Power and Seller Scrutiny
26:23 Understanding FBA and Seller Fulfilled Prime
26:27 Referral Fees and Competitive Landscape
28:17 Amazon Haul: A New Marketplace Strategy
32:05 Challenges for American Sellers
38:45 Succeeding on Amazon: Strategies for New Sellers
Work with LedgerGurus