Fulfilment By Amazon – A Choice or A Chokehold?

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Selling on Amazon is linked to Fulfilment By Amazon (FBA). But it now randomly limits the amount of space it allows to sellers while also hiking fees.
Sellers have reported that Amazon is reducing the number of items they can store in FBA. This has caused a restriction on sending new inventory, which means sellers will not be able to expand their business which can lead to lost sales.
Additionally, Amazon just disclosed a revised FBA pricing schedule that will take effect in 2023. The cost for sellers to use the programme is rising. Since 2020, FBA costs have climbed by more than 30%. In order to preserve a profit margin, sellers raise prices in response to Amazon fee hikes. Meanwhile, when Amazon reduces the amount of FBA storage available, merchants watch as their products sell out and lose out on potential sales.
It would seem that Amazon sellers have no choice but to use FBA, as nearly 90% of the top are on Amazon because it would be practically impossible to compete without it.
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