E575: Amazon Collected 19% More In This Fee in Q3

Amazon's Q3 earnings revealed an 8% rise in online store revenue, a remarkable 19% jump in advertising revenue, and a 10% increase in FBA fees. While the sharp increase in advertising revenue raises concerns for third-party sellers, the relatively modest growth in FBA fees—despite the introduction of placement fees—suggests the impact may not be as severe as initially thought. This lower-than-expected increase in FBA fees could be attributed to sellers choosing to distribute their inventory across multiple warehouses to sidestep placement fees, which in turn has led to higher costs with partner carriers. Overall, this positive earnings report may ease some of the pressure on Amazon to significantly raise fees in the near future.