Beginning August 15, 2024, Amazon Canada will start charging a 3% advertising management fee on ad spend. Understand how this new policy affects you and prepare in advance.

As the e-commerce market continues to grow, Amazon Canada has announced that it will implement a new advertising management fee policy starting August 15, 2024. According to this policy, all sellers who advertise on Amazon Canada will be charged 3% of their ad spend as a management fee.

Details of the New Policy

• Implementation Date: August 15, 2024
• Who Is Affected: All sellers advertising on Amazon Canada
• Fee Rate: 3% of ad spend

Impact on Sellers

This new policy will directly increase the cost of advertising. Sellers need to factor in this additional fee when planning their budgets.

• Increased Costs: For example, if your ad spend is CAD 1,000, you will pay an extra CAD 30 as an advertising management fee.
• Profit Margins: Rising advertising costs may reduce your profit margins. You might need to reassess your product pricing and profitability.
• Marketing Strategies: You may need to optimize your advertising campaigns to ensure your return on investment (ROI) is not negatively impacted.

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