Amazon S-Team: A Growth Strategy
Unlocking Amazon's S-Team Strategy for Brand Growth In the winter of 2013, a small group of leaders huddled in Seattle to answer two critical...
Amazon has recently implemented a significant change to its fee structure in Europe and the UK that could substantially benefit apparel brands looking to expand into these markets.
Previously, Amazon's referral fee system was straightforward: sellers paid a flat percentage based on either the selling price or predetermined pricing tiers (such as 8% for products under €15, 15% for products above €15).
Amazon has introduced a progressive tiered system specifically for apparel items priced above €45:
To illustrate how this benefits brands in this category, consider this example:
For a pair of shoes priced at €80, your referral fee now drops from €12 to just €9.20 – saving €2.80 per unit. If you scale that to 100,000 annual units, you've just reclaimed €280,000 in profit, effectively boosting margins by 3.5%!
This change raises some important questions for sellers:
You can partner with Podean's Consultants to calculate how these changes impact your business and so much more. Fill out the form below to get started.
Unlocking Amazon's S-Team Strategy for Brand Growth In the winter of 2013, a small group of leaders huddled in Seattle to answer two critical...
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