For cross-border e-commerce sellers, few phrases strike more fear than "Amazon is raising fees again." The e-commerce giant recently announced its fourth fee adjustment this year, with new rates taking effect January 17, 2023. This latest wave of increases has many merchants exploring alternatives, potentially fueling a migration to emerging platforms like Temu.
Logistics Costs Take Center Stage
The updated fee structure primarily impacts fulfillment expenses. While Amazon eliminated fuel and inflation surcharges, it introduced an average $0.22 per-item increase in fulfillment fees. Apparel and footwear sellers received modest relief through reduced return processing fees—down $0.20 per return on average. However, a new dimensional weight calculation for large standard-size clothing items may paradoxically increase logistics costs for some fashion merchants.
Seller Frustration Mounts
Industry chatter humorously summarizes Amazon's pricing rationale: "Raise commissions to prevent seller price hikes; address persistent inflation and fuel costs through one-time increases; balance overshipping with higher fees." This gallows humor reflects growing discontent among sellers who previously relied on Amazon's turnkey fulfillment services. Now, each incremental cost directly erodes already thin profit margins.
Temu Emerges as Viable Alternative
The persistent fee hikes are driving some sellers toward Temu, the fast-growing discount marketplace. While operational differences require strategic adjustments, Temu's aggressive pricing and consumer traction present an attractive option for merchants squeezed by Amazon's escalating costs. This latest fee adjustment has undeniably sent shockwaves through the cross-border e-commerce sector, accelerating diversification efforts among sellers seeking sustainable alternatives.