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A look at Amazon's Q2 income report for this year showcases impressive growth in net sales, totaling $148 billion — a 10% rise from the previous year. However, while Amazon’s operating income surged from $7.7 billion to $14.7 billion, FBA sellers report starkly different experiences. While Amazon’s profits skyrocket, their e-commerce revenue increased a modest 4.6% — suggesting stagnant sales growth.

This financial prosperity relies on contrarily forced price adjustments among sellers, as Amazon increased its FBA fees by 12% this year. New penalties for inventory management, including low inventory fees and returns handling fees, have further complicated matters. Consequently, FBA sellers are seeing an average 61% cut in their revenue due to these rising costs.