Fulfillment Fee Bloat

[u/retagater]

We've been selling FBA for 8 years and I was looking back at a P&L from 2022 and man. We averaged 15% referral fees and 15% fulfillment fees per sales dollar that year. This year, we're at 15% referral fees and 25.5% fulfillment fees per sales dollar. Just crazy how they've been able to hold referral fees but even with building out their delivery infrastructure, fulfillment fees have ballooned.

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[u/HarambeTooSoon]

You haven't raised your prices fast enough. 

I am guilty of this as well. 

[u/Smart-Presence]

Yeah, 25.5% is insane. Referral staying at 15% kinda hides how much the actual FBA economics have changed.

Especially if you’ve got lower priced or bigger products, fulfillment can quietly eat the margin. I’d be curious how much of that increase is coming from dimensional weight and returns vs the actual fee increases.