Pay upfront for rebate amount for a review promo?

Quick question:

Im running a review promo and normal price is $22.95 but im giving $18.95 OFF so customer only pays $4 for product.

So far only 6 have sold but amazon just charged me $79.53?

In payments section it says im paying $18.95 per item?

I pay upfront for "rebate" amount?

If i sell 50 at a promo discount for some reviews have to pay almost $1,000?

Comments

  • Amazon charges fees based on:

    1) 15% of sales - and it does not matter if the customer pays with a promo code, credit card or bubble wrap - Amazon charges in DOLLARS...so item cost = $10, discount $8.50= reviewer cost $1.50, Amazon fees $1.50...

    2) If you are doing FBA, there is a per item fee, weight based fee, fulfillment fee.

    In all likely hood, depending on product size, you wll pay $5-6 in fees per item... so 100 items = $500... and this is at $10.. if the pre-promo code price is $20, it obviously goes up...
  • @constantine are you sure on that? Pretty sure Amazon takes 15% from the end price after promotions/discounts. But charges fulfilment, item and picking fee as normal.
  • uhmm... I am not sure 100%, but I am pretty sure... open any transaction where a promotional code was used and see... I may be wrong though...
  • Amazon takes 15% of the end price after the promo/discount, or a minimum of $1 in many categories. So if you are selling for $4, the referral fee is $1, not 60 cents. Then add in the FBA fees + weight handling + storage.

    You can look at the transaction view of the fees to see where Amazon came up with the $79. It may have included your monthly professional account fee, and/or shipping to Amazon fees as well.
  • Hi, I'm so surprised with information that Amazon customer services have given me today.
    He talk me that. If I create a promotion of 14 dollar off, this amount is deducted from my account as a seller. I believe I created 37 promos, each / $ 14 off. The customer only pays $ 0.99
    Amazon deducted from my account $ 518, I almost had a heart attack. I understood I had to pay only the costs of FBA fees, and I assumed the cost of the product. But I never thought, that Amazon deduct the same amount the promo code of my own, it seems I have to pay Amazon for my own product, I was 2 hours with the amazon customer services trying to understand, Because I did not know that a promo code promotion is too expensive as a seller, I cannot believe that my payment report say, PROMO REBATES $ 570, only for promo code, . Which I calculated before to create my promotion the fees for each item should be only 4.03 per item, mean 4.03 x 37 = $ 149 which I am happy to pay, but never want to pay $ 518
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