Amazon adds a new fee for sellers who ship their own packages

1 year ago 105

An Amazon warehouse

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Amazon is adding a caller complaint for third-party sellers who vessel their ain products alternatively of paying for the company's fulfillment services.

Beginning Oct. 1, members of Amazon's Seller Fulfilled Prime programme volition wage the institution a 2% interest connected each merchandise sold, according to a announcement sent to merchants past week, which was viewed by CNBC. Previously, determination was nary specified interest for sellers.

"We're updating our requirements for Seller Fulfilled Prime to guarantee that it provides customers a large and accordant Prime experience," the announcement states.

Representatives from Amazon did not instantly respond to a petition for comment. The quality was archetypal reported by Bloomberg.

The SFP program, launched successful 2015, allows third-party merchants to merchantability their products with the Prime badge without paying for Amazon's fulfillment services, known arsenic Fulfillment By Amazon. The SFP programme hasn't attracted arsenic galore users arsenic FBA has, fixed that sellers are expected to meet the company's Prime transportation standards, specified arsenic speedy shipping and play service. In June, Amazon reopened signups for the invite-only program, aft it suspended enrollment successful SFP successful 2019.

Amazon besides charges sellers a referral fee betwixt 8% and 15% connected each sale. Sellers whitethorn besides wage for things similar warehouse storage, packing and shipping, arsenic good arsenic advertizing fees.

Amazon's marketplace has been an expanding absorption of antitrust investigators successful the U.S. and abroad, galore of whom judge the institution uses its powerfulness to compression the merchants that merchantability connected its platform. Regulators person examined whether Amazon pressures sellers into utilizing its services successful speech for preferential attraction connected the marketplace.

The interest summation comes arsenic the FTC is reportedly gearing up to record a long-awaited suit against Amazon as soon arsenic this month. The bureau has been probing Amazon connected a fig of fronts, including its attraction of sellers connected the marketplace, which present accounts for astir 60% of Amazon's wide retail sales.

Amazon has pushed backmost connected regulators' accusations. In a blog post connected Monday, the institution argued sellers proceed to flock to its sprawling marketplace "because it's a large value."

"These optional, paid services aren't required for succeeding successful the Amazon store — immoderate autarkic sellers tally thriving businesses without them — but galore sellers take to usage them due to the fact that they connection impactful opportunities to thrust their concern maturation astatine little cost," Dharmesh Mehta, Amazon's vice president of worldwide selling spouse services, wrote successful the blog post.

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