How to Survive Rising Marketplace Fees on Amazon, eBay, and Shopify
How to Survive Rising Marketplace Fees on Amazon, eBay, and Shopify
You got into selling online for many reasons. Perhaps you wanted a little extra money. Maybe you wanted to replace your current job. You started selling on Amazon, eBay, or Shopify to go after your dream, but it hasn't turned out that way. All the marketplaces are raising their fees.
What should you do? Should you stay? How can you compete? Should you be doing something else?
Let me give you some suggestions.
1. Understand the Fee Increases
Marketplaces are businesses too, and they increase fees to maintain profitability. In 2025, sellers are seeing:
Amazon’s Fee Increases
Higher FBA fulfillment fees – Costs for storing and shipping products through Amazon’s warehouses have increased.
Referral fee adjustments – Some categories now have higher percentage-based fees.
Storage fees rising – Long-term and peak-season storage fees are cutting deeper into profits.
eBay’s Fee Increases
Higher final value fees – eBay has raised commission percentages in certain categories.
Promoted listing costs – Pay-per-sale and pay-per-click ads on eBay are eating into margins.
Managed Payments fees – Sellers using eBay’s payment system see additional processing charges.
Shopify’s Fee Increases
Subscription cost hikes – Standard and Plus plans now cost more.
Transaction fees – If you don’t use Shopify Payments, you pay an extra processing fee per sale.
App fees rising – Many third-party apps used for optimization now have higher monthly costs.
What You Should Do
➡ Review your marketplace invoices and pinpoint where your biggest cost increases are.
➡ Compare fee changes to your profit margins to see where adjustments are needed.
2. Adjust Your Pricing Strategy
Higher fees mean less profit, so pricing adjustments might be necessary. However, you don’t want to price yourself out of the market.
Raise Prices Strategically
Look at competitors – Are they raising prices too?
Test small price increases and track sales impact.
Use psychological pricing (e.g., $19.99 vs. $20.00) to keep customers engaged.
Bundle Products to Increase Value
Instead of selling one item, offer a value bundle (e.g., a skincare kit instead of just face wash).
Bundles make pricing less transparent, helping to offset rising fees.
Offer Premium Versions
Introduce a high-end version of your product with added features or better materials.
Customers looking for quality will pay more, increasing margins.
What You Should Do
➡ Experiment with small price changes first before making drastic increases.
➡ Analyze sales data to see if customers respond to new pricing strategies.
3. Diversify Beyond Marketplaces
Relying only on Amazon, eBay, or Shopify leaves you vulnerable. Expanding to other sales channels gives you more control.
Launch Your Own Website
Platforms like WooCommerce, BigCommerce, and Wix allow you to sell without heavy marketplace fees.
You own the customer relationship, allowing for better retention and repeat sales.
Expand to Other Marketplaces
Walmart Marketplace – Lower competition than Amazon, with growing customer trust.
Etsy – Great for handmade, unique, and personalized products.
Facebook & Instagram Shops – Sell directly through social media.
Use Direct Sales Channels
Build an email list to sell directly to past customers.
Utilize SMS marketing for promotions.
Run Google Shopping and retargeting ads to bring traffic to your site.
What You Should Do
➡ Start collecting customer emails so you’re not dependent on marketplaces.
➡ Test selling on another platform to see if you can reduce fee dependence.
4. Optimize for Profitability, Not Just Sales
If your revenue is high but profits are shrinking, it’s time to optimize.
Reduce Cost of Goods Sold (COGS)
Negotiate with suppliers – Bulk purchases or different manufacturers can lower costs.
Find alternative materials that reduce production costs without sacrificing quality.
Improve Fulfillment Efficiency
Consider switching from FBA to FBM (Fulfilled by Merchant) if Amazon’s storage fees are too high.
Use a third-party logistics (3PL) provider to compare costs.
Lower Return Rates
Improve product descriptions to reduce misunderstandings.
Upgrade packaging to prevent damage and reduce return-related losses.
What You Should Do
➡ Analyze your supplier costs and explore alternative fulfillment options.
➡ Look for trends in product returns and fix the root cause.
5. Leverage Alternative Revenue Streams
Marketplace selling doesn’t have to be your only income source.
Expand to Wholesale & B2B Sales
Sell in bulk to other businesses or retailers instead of only individual consumers.
Offer bulk discounts for larger orders.
Start a Subscription or Membership Model
Offer a monthly product subscription (e.g., coffee, pet treats, or skincare).
Create a VIP membership with exclusive discounts and early access.
Earn Through Affiliate Marketing or Brand Partnerships
Promote complementary products through affiliate links and earn commissions.
Partner with brands for co-branded product launches.
What You Should Do
➡ Identify ways to offer bulk orders or subscriptions.
➡ Test affiliate partnerships with brands that complement your products.
6. Use Data to Make Smarter Decisions
Don’t just react to fee increases—use data to guide your next moves.
Track Profit Margins with Software
Use Sellerboard or InventoryLab for Amazon profitability tracking.
Shopify Analytics and Google Analytics help monitor store performance.
Run A/B Tests on Pricing and Offers
Test different price points and product bundles to see what converts best.
Experiment with limited-time discounts to boost revenue.
Monitor Ad Performance
With rising PPC costs, ensure ad spend isn’t wasted on low-converting keywords.
Focus on retargeting ads to previous visitors for a higher return on investment.
What You Should Do
➡ Set up a profit-tracking system so you know exactly where your money is going.
➡ Test different pricing and ad strategies to find what works best.
So, Should You Stay or Leave?
Leaving a marketplace is a big decision. If your brand is thriving despite higher fees, it may be worth staying. But if your profits are shrinking with no way to recover, diversifying your sales channels could be the best move.
The key is adapting, not just reacting. If you approach rising fees strategically, you can still build a profitable business.
Need Help?
If you’re struggling to make sense of your numbers and find the best path forward, let’s talk. I specialize in helping e-commerce sellers boost profitability despite rising fees.
📩 Contact me today and let’s figure out the best strategy for your business! 🚀
