Amazon Drop Shippers Beware!

How will Amazon policy changes affect you?

In Amazon’s latest effort to clean up their catalog, they have announced a new change to their High-Volume Listing Fee.

In order to be charged the fee you have to have more than 100k listings for items that have not sold by any seller in a year.

If you are still listing items that meet that criteria, you shouldn't be listing them anyway.

You should be pulling those listings and looking for more actively purchased products.

Yes, it will mean you have to more carefully watch for underperforming products, but honestly, you should already be paying attention to that anyway.

If a listing isn’t selling a single unit per year from ANY seller, then your business model needs to change.

There is no need to spam Amazon with junk! Amazon and Amazon buyers are looking for quality products.

This can easily be rectified by removing listings that aren't benefiting your business to begin with.

If it’s not selling, don’t list it. Don’t think by adding more listings that don’t sell, it will somehow lead to success.

Is your Amazon Merchant account at risk?
Give your account a checkup with my Amazon Account Audit Checklist.

Dear Seller,
We are writing to notify you of a change to how we will calculate the monthly High-Volume Listing Fee. To give you time to plan, this change will not take effect until August 1, 2016.
1. How will the new volume listing fee work?
Starting August 1, 2016, we will identify non-media ASINs where (i) you have an active offer, (ii) the ASIN was created more than 12 months ago, and (iii) the ASIN has not had a sale from any seller in the past 12 months. Your first 100,000 ASINs that meet these criteria will not be charge the High-Volume Listing Fee. For each additional ASIN (above the first 100,000) that meets these criteria, you will be charged a monthly High-Volume Listing Fee of $0.005 per ASIN. The High-Volume Listing Fee will be charged monthly and will be applied to your highest number of applicable ASINs above 100,000 at any time during that month.
2. Can you show me an example go how the High-Volume Listing Fee is calculated?
If during a month, you have active offers of 300,000 non-media ASINs that have not had a single sale by any seller in the previous 12 months and have been listed on Amazon for at least 12 months, the fee applied for that month would be $1000. This is calculated as 300,000 minus the 100,000 that are not charged this fee, which equals 200,000 ASINs that would be charged $0.005 each. 
3. How frequently does Amazon charge the High-Volume Listing Fee?
The fee will be calculated monthly and shown in the monthly statement.
4. Where can I find additional information about selling fees?
For more information on fees, including full fee schedules, search for "selling fees" in seller help.
Thank you for selling on Amazon.
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