Amazon has launched a new “Fee Explainer tool” that will help sellers better understand and manage the fees they’re charged. This tool is a major step towards more transparency in how your selling fees are calculated and applied.
What is the Fee Explainer tool?
It provides a detailed, easy-to-understand breakdown of every fee charged to your account. You can now get clear, itemized explanations for each fee type, including:
Subscription fees
Referral fees
Variable and fixed closing fees
Refund administration fees
Customer returns and high-return rate processing fees
Removal and disposal fees
For each fee, the tool gives you:
A definition of the fee type
The factors used in the calculation
A clear formula showing how the fee is determined
Why does this update matter for sellers?
Better cost tracking: Managing your margins just got easier. The Fee Explainer tool helps you track every cost clearly, which is essential, especially when your margins are tight due to sourcing and shipping expenses. No more wondering where certain fees come from.
Transparency equals control: Sellers have long requested clarity on why certain charges appear, and now Amazon is delivering it. With full transparency into your fees, you can confidently manage your finances and avoid unexpected charges from piling up.
Save time and reduce frustration: Before this tool, figuring out fees and their breakdown could be time-consuming and frustrating. Now, you can access detailed explanations directly within your transaction details, saving you countless hours spent decoding fees. This simplifies financial tracking and helps you keep an eye on profitability.
Optimized business planning: With detailed fee breakdowns, you can plan better when listing products. You’ll now have a clear understanding of how fees will impact your pricing and profit, helping you make smarter decisions about which products to sell and how to manage your expenses.
How to access the Fee Explainer tool?
Go to the “Transaction View” on your Payments Dashboard in Seller Central.
Select a transaction and click on any fee amount to view the detailed explanation.
You can also access reports in the Report Center and via the Amazon Ads API.
What should sellers do now?
Review fee breakdowns: Start using the Fee Explainer tool to understand where all your fees come from.
Adjust pricing strategies: With clearer fee insights, you can now better calculate your margins and adjust product pricing accordingly.
Keep track of your costs: Regularly check for any unexpected charges to ensure you’re not overspending or missing out on potential savings.
Monitor profitability: Use this new visibility to track profitability more effectively, making sure your margins are protected, especially during high-volume sales periods.
The Fee Explainer tool is a game-changer for sellers looking to better manage their costs and improve financial transparency. It helps you track, understand, and optimize your fees, giving you more control over your margins and allowing you to plan your business more efficiently.
Need help optimizing your pricing, managing costs, or improving profitability? Our Amazon selling consultants can guide you through and offer advice on pricing and cost optimization strategies to boost your bottom line.
