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Rising Amazon Costs
Author: Eileen Verosky



Amazon’s storage and fulfillment costs have never been cheap. This is why many companies that use Amazon as a main selling platform have sought out cost cutting ways to profit from their business. While Amazon offers an unparalleled ease of fulfilling customer orders, some may have to guess whether that is worth the expense of marked up storage fees.

Currently, Amazon charges storage by the unit. While that same pricing structure will still apply for the remainder of 2016, the pricing is undoubtedly increasing. According to Amazon.com, prices are increasing because of industry costs such as transportation, labor, and customer service.

For other fulfillment centers, we must wonder whether our services require a pricing makeover as well. As industry standards has it, all companies should reflect customer service, quality transportation, and warehouse labor in their pricing. But while Amazon has quite a hold on the industry, fulfillment warehouses can truly offer a more personalized customer experience large companies are notorious for ignoring.

Depending on your business structure, the ease and convenience of having Amazon automatically fulfill orders makes the pricing increase easier to overlook for customers. Amazon is constantly keeping 3PL companies on their toes, looking for creative ways to operate with the most efficiently, automatically fulfilling orders, gaining client’s trust, and using more advanced technology to compete with the market Amazon has created.

While this pricing increase will hardly turn away sellers, we have to wonder, can we do better?

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