Amazon is introducing a new fee for third-party sellers who choose to ship their own products instead of using the company’s fulfillment services. Starting from Oct. 1, sellers who are part of the Seller Fulfilled Prime program will have to pay Amazon a 2% fee on each product sold, according to a notice sent to merchants last week.
The Seller Fulfilled Prime program, which was launched in 2015, allows sellers to display the Prime badge on their products without paying for Amazon’s Fulfillment By Amazon service. The program requires sellers to meet Amazon’s Prime delivery standards, such as fast shipping and weekend service. The program has been invite-only since 2019, but reopened signups in June.
Amazon said the new fee is meant to “ensure that [the Seller Fulfilled Prime program] provides customers a great and consistent Prime experience.” However, some sellers may see it as another way for Amazon to squeeze more money out of them. Amazon already charges sellers a referral fee between 8% and 15% on each sale, as well as other fees for warehouse storage, packing and shipping, and advertising.
The fee increase comes at a time when Amazon is facing increased scrutiny from antitrust regulators in the U.S. and abroad, who are investigating whether the company abuses its dominant position in the online retail market. The regulators are concerned that Amazon may pressure sellers into using its services in exchange for better visibility and ranking on its platform.
The Federal Trade Commission is reportedly preparing to file a lawsuit against Amazon as soon as this month, after probing the company on various issues, including its treatment of sellers on the marketplace. The marketplace accounts for about 60% of Amazon’s total retail sales and hosts millions of third-party sellers.
Amazon has denied any wrongdoing and defended its marketplace as a “great value” for sellers. The company said its services are optional and not required for succeeding in the Amazon store, but many sellers choose to use them because they offer opportunities to drive their business growth at lower cost.
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