Amazon Fee Changes – 2% Digital Services Tax, everything you need to know

Estimated reading time: 2 minutes

US tech giant Amazon has announced plans to increase referral, storage, fulfilment and multichannel fulfilment fees by 2 per cent.

The Digital Services Tax is a response to businesses which are based overseas and operate paying less than what is perceived as their fair share of tax based on their revenue generated from their UK operations.

So, from this month onwards, Amazon sellers will be paying the Digital Services Tax levied on them by the UK Government, meaning your invoice will be 2% more expensive from September.

Amazon fee changes – the lowdown…

The new increase of 2% applies on referral fees, Fulfilment by Amazon (FBA) fees, and monthly FBA storage fees by 2% for items sold in the UK only.

From 15 September, Multi-Channel Fulfilment (MCF) fees will increase by 2% for items sold in the UK.

Just remember, this is a 2% increase on the fees, not an additional 2% of your item’s selling price. So, in a nutshell, your new invoice will be 2% higher than it would previously have been, for example, 15% goes to 15.3%.

Get in touch today to find out more about how the Digital Services Tax could impact on your business and to discuss how we can accelerate and manage your sales on Amazon.