Amazon has announced significant changes to the fee structure for Deals, impacting how sellers plan and manage promotional campaigns. Here, I have clearly breaks down what sellers must know about these upcoming changes effective June 2, 2025.
Current Amazon Deal Fee Structure (Until June 1, 2025)
Presently, Amazon charges sellers a flat rate for running promotional Deals:
- Non-Peak Days:
- Lightning Deals: $150 per deal.
- Best Deals: $300 per deal.
- Peak Events (Prime Day, Prime Big Deal Days, Black Friday/Cyber Monday):
- Lightning Deals: $500 per deal.
- Best Deals: $1,000 per deal.
New Amazon Deal Fee Structure (Effective June 2, 2025)
Starting June 2, 2025, Amazon introduces a new fee structure that combines daily fixed fees with variable charges based on sales:
Non-Peak Days
- Daily Fee: $70 per day a Deal runs.
- Variable Fee: Additional 1% of total sales made during the Deal, capped at $2,000.
Peak Events
Amazon will maintain a flat fee structure during peak shopping events:
- Lightning Deals: $500 per deal
- Best Deals: $1,000 per deal
Practical Examples (Explained Clearly):
Scenario 1: Short-duration Deal (Non-Peak)
- Duration: 5 days
- Daily Fee: 5 days × $70/day = $350
- Total Sales from Deal: $3,500
- Variable Fee (1% of sales): 1% × $3,500 = $35
- Total Fees: $350 + $35 = $385
Scenario 2: Extended-duration Deal with High Sales (Non-Peak)
- Duration: 10 days
- Daily Fee: 10 days × $70/day = $700
- Total Sales from Deal: $300,000
- Variable Fee (capped at $2,000): The 1% would be $3,000, but it hits the cap, so only $2,000 is charged.
- Total Fees: $700 + $2,000 = $2,700
What Does This Mean for Sellers?
- Budget Planning Complexity: Sellers must now carefully calculate both fixed daily costs and potential variable fees to maintain profitability.
- Higher Risk, Higher Reward: High-performing deals become more attractive, while lower-performing deals incur guaranteed daily costs even with minimal or no sales.
Recommendations for Sellers
- Evaluate Profitability Carefully: Before creating a Deal, run cost-benefit analyses, considering the fixed daily fees and possible variable fees based on anticipated sales.
- Strategic Duration Planning: Shorter-duration deals can minimize upfront fixed costs, particularly if you’re uncertain about product performance.
- Monitor and Optimize Deals: Regularly check the performance data of ongoing Deals to quickly adjust or end deals if they are not profitable.
Deal Fee Exemptions to Consider:
- Deals canceled before their start time incur no fees.
- Deals that only contain suppressed ASINs throughout the entire scheduled duration incur no charges.
Source: https://sellercentral.amazon.com/help/hub/reference/G202111590
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