Amazon Will Reportedly Charge Sellers Extra Fee For Shipping Their Own Products

Date:

Amazon will soon start tacking on an extra fee for sellers who don’t use the company’s fulfillment service. Documents viewed by outlets indicate that Amazon will start imposing a fee on each product that merchants send out themselves. The fee will reportedly go into effect on October 1st and will apply to the sellers who are members of Amazon’s Seller Fulfilled Prime (SFP) service.

Unlike Fulfillment by Amazon (FBA), the SFP program lets third-party merchants sell Prime products directly from their own warehouses instead of having Amazon handle the logistics process. That means sellers are also required to keep up with Prime’s one- to two-day delivery standards and weekend shipping.

While Amazon first introduced its SFP service in 2015, it shut down enrollment in 2019. The company didn’t reopen the waitlist until June of this year, a decision Amazon made to satisfy regulators. It’s not clear why Amazon is imposing this fee now, and the company didn’t immediately respond to requests for more information.

The 2 percent fee doesn’t come at a particularly good time for Amazon, as reports suggest that the Federal Trade Commission is currently preparing an antitrust lawsuit against the giant. It also adds to the between 8 and 15 percent commission that Amazon already takes from orders placed on the platform.

Still, the added charge could be a way for Amazon to nudge sellers toward using its in-house services, giving the company more control over the logistics process while letting it cash in on rising FBA costs. This may only result in increased scrutiny from regulators, as a seller already accused the company of forcing merchants to use its FBA service in 2019.

 

 

 

 

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

STERLING BANK AND AFREXIMBANK LAUNCH INNOVATIVE SUPPLY CHAIN FINANCING SOLUTION

Sterling Bank, in collaboration with the Africa Export-Import Bank...

MONIEPOINT MICROFINANCE BANK INTRODUCES NEW USSD SERVICE

Moniepoint Microfinance Bank, renowned as Nigeria's leading bank for...

FCTA WARNS PROPERTY DEVELOPERS TO VERIFY LAND OWNERSHIP BEFORE PURCHASE

The Federal Capital Territory Administration (FCTA) has issued a...

FIRST BANK LAUNCHES DIGITAL EXPERIENCE CENTRE IN BANANA ISLAND, LAGOS

First Bank of Nigeria Limited has unveiled its new...