LIVE – Amazon FBA FEES go UP!! for media sellers in FEB/MAR 2017 – Breakdown! Reezy Resells
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LIVE – Amazon FBA FEES go UP!! for media sellers in FEB/MAR 2017 – Breakdown! Reezy Resells

What’s up guys, welcome to
our Reezy Resells broadcast. How’s everyone doing out there? Let me get my iPad that I
have somewhere around here. What we’re going to talk
about today is the new fees that were announced for the
Amazon FBA media sellers. New fees in general but mostly
impacting media sellers. Let’s see, I’m actually going on
to my own YouTube right now to… so I can bring up the comments because
I’m broadcasting from my phone and I cannot see the comments. So this
video did not hit my YouTube yet. Anyway, so what we’re going to talk
about, just get right into it, so they raised two of the fees.
The one fee that they raised is the variable commission fee. This fee
has been $1.35 for the longest time. Well now, it’s going to be $1.80
and this is going to be starting in February and March of 2017.
Let me get the actual date, that’s why I was
stuttering right there. So the general fulfillment fees
are increasing on February 22nd and the variable commission
fee that I just talked about is going to increase on March 1st. So March 1st, the variable commission
fee changes from $1.35 to $1.80 that’s 45 cent increase
across all your media items. And the other fees are a little bit
different, you got an email of it. If you sell on Amazon, you
got an email about it so I’ll just run over it
real quickly with you. Let me see if I can get this light on.
I forgot to turn the light on, no wonder it looks super shitty.
Let’s see, did my light just die? Yeah, whatever. I guess my light died. Anyways that’s what we get no light. So
for a small standard sized media item, the total fulfillment fees prior
to the new fees was $1.56. After the new fees on February 22nd that’s going to be $2.41 for large
standard size one pound or less. This is going to be a lot of
books, it was normally $1.91 that’s what it is right now and it’s
going to be $2.99. A change of a $1.08. So right there, for large standard
sized books if you add that $1.08 with the 45 cents variable
commission fee increase, you’re looking at a $1.53 increase and that’s only if your book is one pound
or less. And I’m not 100 on this but I think that the book weight is
calculated by the packaged weight when it’s going out for shipment. So a lot of books are going
to actually fall into the large standard size category
which is one to two pounds. That is costing currently $2.30 and
it’s going to end up costing $4.18. It’s a pretty large increase. So by increase, let me see
if you guys can see this. Let’s see, yeah that’s the
increase that we’re looking at. Let’s see if it will focus, yeah $1.03
for small, $1.53 for one pound or less and $2.33 for items that
are one to two pounds. That’s a lot and generally it’s
going to affect the game big time. What we’re going to have to do
is we’re going to have to start sourcing items of a higher calibre.
We’re going to have to start sourcing items that are worth more. Generally
about $1.53 more on the minimum as much as $2.33 more. So for us,
our general rule of thumb is, we just raised our minimum
price up $2 from $6 to $8. I’m trying to get in on the comments
guys, starting to piss me off. Let me grab my laptop,
hold on a second. So I still need to iPad
for those pictures. So what you got to do is, you
got to step your game up. You got to source items that are
going to be able to sell for more. So currently, there’s a lot of low ball
prices. You know $5-$6 FBA prices. Those are going to become $7-$8 prices, everything is going to come up
around a $1.53 on the minimum and my guess is going to be there’s
going to be a short race to the bottom and then after that the
market is going to adjust. Give me a second here so I can pull
YouTube up so I can interact with you guys because not you you YouTube…
yeah. So this is nothing new, Amazon in
business or in Amazon in general, fees are always going to go up.
Nothing ever stays the same. When I first started selling books on
Amazon FBA a little over 7 years ago, I could sell a book for
$4 and make $1.35. Now I have to sell a book for $6
to make the same $1.35 and soon, come February talk, I’m going to
have to sell that book for $8 to make the same dollar and change.
So over 7 years, that’s a $4 difference on a per unit
fee so things change a lot to say… to say the least. One second guys, I almost am to the
video so that we can interact. Let me get on the comments with you. Weird. Why is it not showing on… super, super weird. Let’s see, live stream videos. Okay here we go, I don’t know
why it wasn’t showing up on the normal part of my channel. Let me pause that and then get in the
comments with you guys here. Boom. Finally made it to the comments.
Sorry guys. Let me scroll up on these comments. Kevin Cobb, what’s up bro. How’s
the audio by the way guys? The audio in the video? This…
I’m just using some app I just downloaded in it
straight from my phone. What’s up Kevin. What’s up Aaron.
What’s up Rocky Mountain Resale. William Horn, Andrew Alvis.
Favourite person to watch lately. Thanks man, appreciate it. Do you know when they will lift
the ban on new FBA sellers? Tomorrow guys, frickin tomorrow. Tomorrow, you guys can start
sending shit into FBA and I hope to do another
broadcast about that. So let’s not talk about that but
tomorrow so get your tape guns ready, get your scales plugged
in, it’s time to go. What’s up almost clémence.
Ivan, with the sales going up, what’s the minimum you’re
looking to make now per sale? I’m still looking to make the same
minimum but I’m going to have to sell the books for a little bit more so we
raised our minimum price from $6 to $8. Orange Polar Bear says, Reezy, if you
sell a book for $8 and it costs you $1, you will make roughly 50 cents.
Is that worth it to you? No, for $8 you would make $1.35 and
you have to subtract your fees going from there. If you guys haven’t yet, please
thumbs up this video right now and leave a comment down below
that really helps my channel when I get a lot of comments and thumbs
up all at once in these live videos. It drives the analytics up and that
shows my videos to more people and that just brings more
people into the ecosystem that we can free from their 9
to 5 because everybody deserves to at least know about how you
can sell online and get money. So please like, comment, subscribe
if you haven’t done that yet and if you can share this on any
of your social media channels, Twitter, Facebook,
whatever that’s great too. Let’s keep it going at the comments.
Hit up the comments too if you guys want to know
anything about these new fees. Cool, the quality of the videos good.
Audio is good. Let’s see, yeah you got to get a
little picky with your selection. I never recommended people to
be super loose to begin with. You always want to have value
there to back up your decisions so if you’re making these
risky low-margin decisions, they better sell really fast, you know, not nothing that you’re going
to hold on for a long time. Amazon is slowly derailing. I think
they’re derailing from books. They… obviously they
still care about textbooks but I think the average book sale
like $10 or less they don’t care. What’s up Kevin Floog. I think
that’s how you say your name. I saw you book sourcing vid yesterday, your scanning popped up so quick
on your phone, mine is so slow. You got to use database bro. Oxes Addict, do you think
sellers will increase prices? I do, Oxes addict, I think
the market will adjust. Can you make some profit at half-price
books? Definitely, you can. You definitely can. Start
off with the clearance and then check out the textbooks. Definitely check out the
new books for sure too. I’m going to raise my prices definitely
but I feel like there’s going to be… Everyone’s going to try and raise
their prices then right before long term storage fee people are
going to get scared and liquidate then after that the market
will reset and everyone… I mean you can’t have a business model
based on sourcing and selling books at a loss so even if you
don’t know what’s going on, soon enough you’re going to
start going bankrupt so that… you know the money talks right. Let’s see, hi Erika Hernandez. Jonathan
Bubba, hey Reezy, just logged in. What’s up bro, how you doing?
How’s everybody doing anyway so? All my night owls, late up on Sunday.
Where you guys at? Hit the comments and let me
know where you guys are at. Check out this massive NES collection
behind me too, by the way. You guys see that? I don’t know
if you’re into retro video games. It’s not my stuff, this is
my little brother’s stuff. He got some massive retro
status collection. Let’s see, thrill of the hunt… Like for real, this is a gold mine, gold
mine, gold mine. It’s an investment. Amazon will no longer
be the first choice as sellers will have to
increase selling prices. Yeah, I don’t know exactly
what’s going to happen but I think the market
will adjust and I think… buyers will just pay a couple bucks
more because the reality is, it’s still a lot less
than the retail prices. Kevin, there’s a pro skater
with a similar last name, he must be of similar descent. Orange Polar Bear, I’m literally
on FBA calculator an $8 book after fees and inbound shipping
in $1 cost, you make 58 cents. Are you talking about before or after?
Because that’s not true at all. A $10 book makes you $5 and change
and an $8 book is not making you that much less. If you’re talking
about afterwards, that’s what’s up. Hey Nicole, what’s up how you doing?
Everyone, shoutout to Nicole State. If you subscribe to me and you
don’t subscribe to Nicole State, you’re missing out. She puts
out a lot of great content. It’s not bookselling related or
Amazon but it’s eBay related and you need to get down on
your eBay game, trust me. I’m always trying to step mine up so
I try to surround myself with people who are crushing eBay and she’s one of
those persons so give her a follow. Robert Siray is in Vegas. Yeah,
a lot of money on that shelf. Royce, do you have any estimation on
your profit value, they want to know? How much you have invested
in your collection? [Royce] Too much. [Reezy] Too much, too much. He
was sniping… sniping prices you know like checking out… getting
them for the super low, low prices. Waiting, grabbing them, stocking up. This is like the stock
market right here. I keep pointing on the wrong way
because the screens all reversed. How much does the app that I’m using
cost to broadcast from your phone… to YouTube live? It’s free. I’ll
put it in the comments later. I can’t see right now but if you go to
the app store and search live YouTube, it’s one of the first ones that
comes up and it looked decent so I tried it and
apparently it works great. Atlanta, go cowboys! Waiting for the
roadways vlog, miss Nicole. Nice. you must interview Posh Hanger. I’m
going to interview the Posh Hanger. I don’t know if she’s watching this but
Monica, we need to have that interview. (laughs) For real though guys, it’s
coming soon, soon come Monica. The Posh Hanger, eBay
clothing extraordinaire. She did an interview with
State’s Place already. So if you want to warm up
for my interview with her, go check that one out.
It’s pretty tight. After the new fees are
integrated it’s 58 cents. Let’s see, yeah for the
$8 is the new $6 sale. Crested Butte Colorado, 41 inches
of snow over the last 3 days. Jesus criminy! Yeah it’s
51 degrees or 50 ish, you know and I’m already
complaining about the temperature and people replying to my
snapchat story calling me a pussy and I seriously have like three
jackets too long sleeves, thick socks like I’m weak out here out here,
used to these California weather. Can’t wait for the Posh Hanger. How do you remove the stickers
from plastic on toys? Are you talking… that is a
question from James Hill. James, are you talking
about the plastic where you can’t heat it up with the
heat gun because it’s going to melt or because it becomes opaque?
That’s my guess. There’s a couple ways that
I like to remove stickers, this should probably be its
own video but whatever. It will get buried in the live
feed so for one is the heat gun. Obviously, you can’t use
that on everything for two, there’s this many heat iron thing.
I don’t have one but I’ve seen people use it before.
If you are watching and you know what it is please put
the name of it in the comments or a link to what it is. It looks just
like a clothing iron but it’s small, it’s like that big and you put it
on the sticker until it heats up and then you scrape it off using
a Scotty Peeler or whatever. The other thing is to use Goo
Gone to take the sticker off but the most genius thing I
ever learned about Goo Gone is there’s this thing called a…
an envelope moistening pen. It’s a pen that has a foam tip and you
fill it with water to moisten envelopes for you so you don’t
have to use your tongue. But instead, you empty it and
you fill it with Goo Gone. And what you do is you paint the
stickers until they’re saturated and then you come back
a couple minutes later and they slide right off the packages.
So it’s not the fastest way but it’s pretty effortless and it
works great for those packages where you can’t use the heat gun on. Hit me with comments if you guys
want anything you want to know. I’m going to hit it up in the comments because I pretty much
discussed all the new fees. You know, the fees are
starting in February 22nd. March 1st, variable commission
fees going up 45 cents. The average book is going up $.153. Other books that are one to two
pounds are going up, what was it, $2.33 so you need to adjust
accordingly and know that… you’re sourcing books right now, those
fees aren’t going to match up until obviously there. So raise your minimum
sourcing and selling price up so that you have margin
when these new fees change. How do you figure all your
shipping costs to FBA? The app I use, Aaron, is called
FBA scan and it has inside the… while you’re sourcing, you
can put in the price you pay per pound for inbound
shipping and it calculates it into the profit calculation
when you scan an item. Obviously, you have to put
your cost in as well. I generally just do that in my head
because I’m not trying to switch my costs all day long while
I’m in the store. And if you forget that you put
your cost in while you’re scouting that’s a pain in the ass
because you’ll pass items up because it looks like it’s not
profitable, only because you had, you know, $7 in the cost already.
So that’s no no for me anyways. You’re going to have to
rewind the videos David to see the update about the fees.
We’ve already covered that. Zero degrees here in Chicago, Crown
Hustler. Damn, I feel for you. My boy Frank Tubes, I think he
lives out there in Chicago. Cold out there for a hustler. Will FBA scan adjust
to the fees on its own or will we have to add
the fees ourselves? I am not sure about that Four
of Clubs but if anyone is, please help our community out and put
some value down there in the comments. I saw an ad for a book sell that said
‘no scanning’ would you still go or you would skip it? I would still go,
Nicole, and here’s what I would do. For one, I would scan anyways
until they told me not to. Not that I would be rude but
you might get away with it and not have anything said
to you the whole time. Obviously, try to be discreet
and always be polite because sometimes when
that rule is there, it’s because they’ve dealt
with very rude booksellers that have been very messy and they’re
understaffed with volunteers. So they can’t deal with policing
the booksellers who basically just act like it’s a feeding frenzy
so just be respectful, be nice. There’s a bake sale, buy some
cookies whatever but hit it and you know maybe you
can’t scan books there but maybe you’re nice with them and maybe they let you in a
couple hours after that. Or maybe you can make a deal to buy
the leftovers for 30 cents a pound because they just throw them away. Basically, donate them
to Goodwill afterwards. Anyway so don’t be scared about
that, definitely go check it out. I mean I guess it depends how far
you have to drive to get there. Maybe you could make
it worth your while. The thing is, these Friends of the
Library that run these sales, their mission statement is to
raise money for the library and the booksellers are the
ones that are most of the books and bringing in most of the
money for the library. So it’s pretty much against
their mission statement, when they don’t want to let you in
to scan. So if you’re just nice and you let them know you want to
come and give them a bunch of money, it should work out. I mean it might not work out but
it’s definitely worth checking out. Let’s see, hi Raiken, enjoy your videos?
Definitely not. Oh ok, Raiken’s in the house, word.
What’s up Steve? Steve’s my boy since we be periscoping
in the bra aisle back in the day. (laughs) I doubt anyone here knows
what I’m talking about but if you do that’s hilarious. Let’s see, damn these
comments are so fast guys. Pick up plastic razor blades
off eBay, dirt cheap right. Some are saying, due to
all these restrictions, Amazon will soon eliminate
3p (third party) sellers. What’s your two cents on it? I have
no clue what’s going to happen but I’m going to make as
much money as possible until someone tells me I
can’t do that anymore and I suggest you do
the same because… Swag is obviously the
coolest dude in the room. But, you know, if Amazon
is going to disappear. There’s going to be another hustle and
you better get enough money right now to help you transition
to the next hustle. Let’s see, do you use the
brother to print labels? I do use a brother laser printer, I
don’t know if it’s that exact model but they’re all pretty similar. I’ve been using them for 10 years
laser printer for 30 up labels. Oxes Addict, we are raising our
minimum price to $8 from $6 which is where it is now. I
do use eflip, Derek Miller. At what date will the economy reset?
I have no clue. I think it would start to self-adjust
soon after February 22nd or March 1st anyways but people already have books
at FBA and they’re stupid and lazy and they’re not paying attention
so like I said it might take… People might actually have
to start losing money before the economy of
what we’re doing changes so it might be after the next long
term 6 month long term storage fee. How do we ban this guy, Swag? Block
user, there we go. Blocked, nice. Let’s see, if you’re starting out
would you recommend switching to a pro account to be able to
sell shoes and other products? Do you think it would
be worth it, Sammy? It would definitely be worth
it if you have the money and the confidence to
go out there and do it. If you don’t, you know, that’s $40
a month that you’re throwing away. Might not seem like much but there’s
a lot of subscription based services in this industry and that
shit can add up really quick, you don’t want to play with those. Do I mess with books with no rank, Lance
Anderson? I do but very sparingly. Here’s the thing, it’s hard
for me to tell you guys this because you may or may not
be educated about books. But I would never buy a book
with no rank that didn’t have huge solid merchant fulfilled value.
I’m talking like at least $60 or more and the subject matter would
have to be interesting, something that I could see being worth
holding on to and actually selling. This is like intuition and logic, it’s
nothing your scanner can tell you and so you obviously just don’t go
around buying every book with no rank that looks like it’s worth money.
But if the conditions look right and it’s only $1, maybe you should. I have sold plenty of
books that have no rank. There’s other things
that are indications, that would make the buy good. For example, there’s no FBA offers
or there’s no picture for the book or the picture is terrible things
like that you can improve the picture you can send yours in FBA,
maybe you’ll make the sale. But I don’t advise you
to blindly buy FBA… buy books that don’t have a rank
because that’s a recipe for disaster. Yeah Raiken shoutout.
Romulus, what up playboy. Liked and subscribe, thanks Sunny Side.
Again guys, if you just tuned in and you haven’t liked, commented
or subscribed to my channel, please do all three at the same
time with your octopus arms. Get a third arm up in
there like right in there and do all three at the same time. Really helps my channel and
I really appreciate it. Chicago Crown Hustler with
the quadruple thumbs up. Bow, bow, bow, bow, quadruple pound. Troll leave has zapped him. Report
the trolls. What’s a 3P sale? I don’t know is that a riddle? If not Amazon will be your
second choice backup. For me, it’s going to be eBay guys. I’m not limiting myself just
to those selling marketplaces. I’m also looking into Shopify, you
know, making your own t-shirts and merchandise and
then driving traffic to your Shopify site with Facebook ads. That kind of thing, my boy RJ
Martinez, he’s getting into that and that’s something I’m
definitely interested in. I also do Amazon merch. I just had my first week where my
Amazon merch broke a $100 in profit that was pretty nice. I don’t really put a lot of
time into it but I’m going to. It’s a great opportunity that I also
recommend for you guys to try out. I’m also looking into brick and mortar
opportunities, things like Airbnb which is like a brick and mortar
but an internet business also. Me and Scotty G are thinking about
opening a cafe in north Carolina this year so that would
be kind of tight. Because I think the service
industry is one of the businesses that is pretty safe in the future as far
as retail dying, you know what I mean. Is the sound cutting out? What’s the
sound like? Does it sound good? Give me a sound check guys.
Thanks James. Thanks James and guys if you want to
follow me on snapchat or Instagram or Twitter or anchor or whatever, it’s always going to be
@ReezyResells on anything. Do I spend more than a $1,000
most weeks? If I’m buying shoes I spend more than $1,000 a day. On eflip? Hmm probably not $1,000 most
weeks but when the prices are low, yes definitely and more. Never stick to one selling platform. Also guys, look into local
selling platforms things like Facebook marketplace, Craigslist,
OfferUp, letgo, all these things are going to allow you to sell
things for locally, you know, and then you get to avoid fees
and maybe taxes. I don’t know, I’m not advising you to do that but
no one’s going to come get you. A funny story, I sold Luna’s pink
schwinn tricycle which was used, you know, she barely used it. It’s
not like she thugged out on it, she barely rode it in the kitchen. I sold it used on Facebook marketplace
for $60 and later I found out you could get a brand new
at Target for $50 in stock in the town that I live in. So that’s pretty funny, there’s
arbitrage right there. A lot of people are on
Facebook and you know maybe more people that are
shopping on Target I guess. Let’s see, sound is good. How
do you get into selling shoes? You need to be approved to sell shoes
and then there’s a bunch of categories different brands of shoes
you’re not allowed to sell. For example, Nike or Adidas or a
lot of the really good brands without brand approval which
is really really hard to get. Kevin Cobb, a brief overview
on how the buy box works? So I’m not going to do a
detailed explanation Kevin but I can tell you there’s this
document that you can google called the Buy Box Bible. Can someone
google that and bring that document up and put a link in the
comments for Kevin please? I forget who made it but it’s called…
I think made it and it’s called the Buy Box Bible and
they analysed it and everything. But the moral of this story is price
is king and it’s not the only factor that determines if you get the buy box
but it is by far the most important. Feedback is also important, if we have
the same price and I have more feedback. I’m going to get the buy box over
you, things like that but go ahead and read that Buy Box Bible document and
you’ll catch all kinds of knowledge. I’m grandfathered into selling shoes. Yeah couponing is huge,
Maria knows what’s up. Where’s my spectacles you
were sending me? I don’t… I don’t seem to remember of
sending you any spectacles. Can’t avoid but can evade,
my rent is $1,000 a month, what inventory level do I
need so I can quit my job? Wow, I can’t really answer
that question for you. That’s your own… that’s your
own risk aversion and stuff. You know like, you guys know my story. You know how I started out
so it depends on what level you’re willing to go to but I tell
people not even to trip about their book business until they have at
least 1,000 books in their inventory. If you’re asking me about a
business based on retail arbitrage or online arbitrage, I can’t answer
that question because I don’t know. I’m not that familiar with how
a business that’s a 100% based on those products work. I know it
turns over a hell of a lot faster than my book inventory does. Yeah, I want some coupons too.
Coupons are big. Anyways guys, I’m about
to end up this broadcast unless you guys have any more questions.
I’ll wait a couple minutes and we’ll do one more round
of questions that I’ll answer and then we’re going to have
to wrap up the broadcast. Let me go over and recap real quick for
you what this whole broadcast about. This broadcast is about the fees that
are increasing for media sellers for Amazon FBA starting February
22nd, fees are going to increase. They’re going to increase
the variable commission fee which is the flat based
fee for all orders that is going to increase 45 cents. Then there is additional fee increases
for the fulfillment pick and pack blah blah blah they’re actually
condensing all those fees in to one fee term called the fulfillment
fee or some shit like that. But anyways, it basically
breaks down like this. For items that are small, let’s see
if you guys can get this to… if I can get this to
focus like I did before. For items that are small standard size, it’s going to be $1.03 increase for
items that are 1 pound or less. Large standard size, it’s
going to be $1.53 increase and for items that are one to
two pounds large standard size, it’s going to be $2.33 increase. So you better adjust your
business accordingly, source items worth more money, price
your items at higher minimums. It’s not the end of the world guys.
It’s just changing, it might even be a blessing
because a lot of people are going to go out of business.
Used bookstores and thrift stores that sell on FBA are going to
quit Amazon over this one. Guarantee, it always happens
and so the books on the shelf are going to be more plentiful. At the same time, other booksellers
are going to quit and give up so there’s going to be more
books left on the shelf. I’ve seen people panicking already. People talking about they’re going
to eBay, they quitting etc etc. I don’t know how to quit guys, all I
know how to do is get money and hustle every single day and that’s
what I’m going to do and that’s what I
recommend you guys to do. I really thank you guys for
joining me on the broadcast and I hope you guys join me
on my next live broadcast which is going to be tomorrow
concerning the end of the moratorium on the new FBA seller. So tomorrow, you guys can start
sending your shipments into FBA if you never have. And I
want to do a live broadcast basically to celebrate
that with you guys. So thank you for tuning in. Until
next time guys, hustle on. Peace.


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