March 26, 2007

Q&A: Will Amazon increase our shipping credits when Postal rates rise?

QUESTION: How can we get Amazon to do right by us third-party sellers when the postage rates go up May 14? Will they increase shipping credits? I've seen nothing posted on their site. While I haven't had the time to call them, I know from past experience that while the Seller Support people are very nice, they're usually not told anything.

This time the Postal Service rate hike is really steep, and it hasn't been too long since they raised them last time.

I don't make that much per book. I have to really watch my pricing and how much postage is going to be, so this rate increase really concerns me.

ANSWER:
I'm also surprised at how steep the Postal Rate hikes are this year. It seems to be totally out of whack with the rate of inflation, rising fuel costs, etc. Nearly 18 percent more for Media Mail?? Where on earth did they come up with that number? It's so much I don't think Amazon can ignore it this go-around.

Amazon stiffed us after the last two Postal rate hikes. They didn't give us a cent the last time rates went up, and only a nominal amount the time before that. This time, at the very minimum, they need to raise Marketplace shipping from $3.49 to $3.99 or $4 and change and give us all of the increase.

Sure, we can raise prices. But it would be helpful to know whether we'll need to do it.

I'm not sure how to extract this kind of information from Amazon. Although I think Amazon is a great company, it management is afflicted with a common syndrome -- the idea that because it operates on the Internet, it can ignore input from its customers and business partners.

Of course we can e-mail or call the seller support folks, but I doubt it would make a difference. One way to break through the bubble is to send an e-mail to jeff@amazon.com. E-mails sent there are read by the executive staff and legitimate complaints are taken seriously. Perhaps if enough of us write in, we'll at least get some clarification on what to expect about shipping credits this time.

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9 Comments:

Anonymous Anonymous said...

I don't know how accurate this is, but I've been reading Amazon's seller discussion board threads on the postage increase. One seller said she had emailed Amazon & they replied back saying that there was NOT going to be an increase for 2007.

I have no idea who she emailed at Amazon or who wrote her back. I called Amazon & the CS people can't tell me anything.

I emailed jeff@amazon.com and have not received any type of response. I also emailed seller suggestions & got an automated acknowledgement of my emai.

SOOOOO, looks like we could be hosed AGAIN.
As far as a public announcement from Amazon, wonder if they're going to wait til the last minute like before. In this case, I doubt if no news is good news.

3/27/2007  
Anonymous Anonymous said...

I know we are independent cusses but this is basically why a union was so appealing to workers. Management does'nt care and the workers get stiffed. I keep wondering what kind of clout a unified group of independent sellers could have upon Amazon or others. Surely that has crossed other peoples minds..

3/27/2007  
Anonymous Anonymous said...

I agree with everyone that after the postage increases and Amazon fees $3.49 won't be enough. On the other hand, if the marketplace shipping was, say, $4, how would it make us sellers look if Amazon continued to promote its free shipping? I'm almost more willing to embed the increase into my prices.

3/27/2007  
Anonymous Anonymous said...

Yes. I like that idea. A book sellers union of sorts to stand as 1 against Amazon. It would be great. I hate the feeling of helplessness. I make my living off of Amazon and know I cant afford to do business without them which leaves me vulnearble to them screwing me. My feeling with Amazon is that they just do not care about me or my $8 to 10 K in monthly sales. I know I'm a small fish in the sea, But if we were a school of hundreds of small fish, Maybe our voices would be heard and responded to better.

3/27/2007  
Blogger Jeffrey said...

I don't want to see an increase because it will eventually be too daunting for the regular consumer to choose a 3rd party over Amazon. Increased costs for penny sellers doesn't sound bad to me.

3/27/2007  
Anonymous Anonymous said...

No increase from Amazon will; shake out Hobby sellers who are driving prices down - I can absorb some but not all of the increase - it will sting but not pain me

3/27/2007  
Anonymous Jim C said...

Shareholders made their disappointment known that Amazon continues to offer free shipping on items over $25 during the last earnings release. Perhaps they'll do away with their free shipping.

I definitely want an increase in the shipping credit regardless. Most of the items I sell are under $25.

I am estimating that the increase in shipping will cost me 35 cents an item.

I am on pace to sell 3,000 books this year.

3,000 * .35 = $1,050

There goes my vacation.

I'll be sending my email to jeff shortly.

3/28/2007  
Anonymous kashe said...

I am torn about raissing the shippping reimbursement--On the one hand keeping it like it is should weed out some of the hobbyists and penny sellers and maybe book prices won't spiral so much.

Also, I use Prime, and from a personal POV, a shipping rasie to the customers would make it even less likely for some of us to Purchase from a 3rd Party.

But, for anyone that sells new books, the shipping increase without reimbursement from Amazon could really hurt, esp IF the prices do not stop spiraling.

ALibris has an announcment on Their Hub. but no mention of increase yet--I bet that they are waiting to see what the others do--If Amazon goes to 3.99 and they stay at their rate, they could gaine more customers.

3/28/2007  
Anonymous Anonymous said...

Personally I'd like to see Amazon and the rest of the gang get off their kiesters and use the power of their computers to make a sensible system work.

Amazon needs to institute a consolidated order feature so that one buyer can buy 10 books from me without paying $35.00 in shipping.

It isn't rocket science.

Amazon also needs to adjust their basic shipping matrix to the weight of a single book. If I want to sell a set under a single listing, that's my business; but a 4 pound book costs more to ship than a 6 ounce paperback.

Alibris needs to adjust their shipping reimbursement to the cost of the book sold--under $10 or $15 do nothing to the system at all; over $10 or $15 to $100, dispense with the vigorish and gives us the entire shipping fee to pay for the extra supplies required for decent books.

Above $100 require expedited shipping and gives the whole enchilada.

It's a simple SQL query in their database, about 15 minutes worth of programming.

But they won't.

3/30/2007  

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