Amazon Newsday 3 Sep 2024

Unfulfillable FBA inventory to be removed after 23 days

Unfulfillable FBA inventory is to be removed after 23 days.

Amazon is updating its FBA inventory-required removals policy.

Amazon claims this is to create more room for seller products and to help sellers to save on storage fees.

Starting on September the 16th 2024, if sellers have not enabled automated unfulfillable settings in the UK or the EU, Amazon will dispose of or donate unfulfillable inventory after 23 days' notice instead of the current 30 days.

To avoid disposal, Amazon says sellers can create a manual removal order or configure automated settings to either liquidate the inventory to recover some value straight away or return inventory and have it sent to a seller return to address or a third-party freight forwarder.

Once they create a disposal order after 23 days' notice, Amazon warns it cannot be cancelled.

Change to the digital services tax charges from October.

On October the 1st, 2024, Amazon will introduce a digital services fee for digital services taxes, DST that are implemented by the governments of Canada, the UK, France, Italy, and Spain. The typical DST Rate is 2 percent in the UK and 3 percent in Canada, France, Italy, and Spain.

Since 2021, Amazon has apparently accounted for DST by increasing selling on Amazon fees in the UK, France, Italy, and Spain, and by increasing fulfilment by Amazon fees in the UK and France, but starting from October 1st, Amazon will reduce those fees and account for this cost by introducing a standalone digital services fee.

DST or digital services taxes charges are unpredictable as they vary based on the location of the seller's business, the location of the buyer and other factors. And so Amazon has decided rather than basing the digital services fee on those variables, which will create an unpredictable unpredictable business impact, um, Amazon will introduce a fixed digital services fee only based on the seller's location and the store in which the sellers sell.

Where to see the digital services fee applied to seller's orders

If sellers wish to see where their digital services fees are being applied to the orders from September the 1st, sellers can preview the fee in the revenue calculator and starting on October the 1st, sellers will be able to track digital services fees via the transaction view in the payments reports.

In order to view the fees across different stores and different countries, the SKU economics report will provide historical proceeds from sales. Returns fees and ad spend and net proceeds by SKU for each store in which the sellers sell.

Change to coupon code stacking settings

Changes to coupon code stacking settings.

Amazon has added an extra setting to give sellers control over whether coupons can be stacked by consumers. Stacking coupons means that, for example, a 20 percent offer could be combined with a 5 off offer to give a consumer a larger discount on an item than a seller intended.

Amazon have created a new tool called Stacked Promotions Enablement. This tool enables sellers to choose how they stack coupons, percentage off, or buy one get one promotions. It's thought this will be particularly useful for protecting sellers on high-volume days such as Prime Day.