Amazon Introduces New Fees for Third-Party Sellers

Amazon has announced that starting from October 1, it will be implementing new fees on third-party sellers who choose to ship their own products rather than utilizing Amazon's fulfillment service. Under the new policy, Amazon will collect a 2% cut on the sale of each product made by members of its Seller Fulfilled Prime Program. If the 2% fee amount falls below 25 cents per item, the minimum charge will be 25 cents per item instead.

The Seller Fulfilled Prime Program

Introduced in 2015, Amazon's Seller Fulfilled Prime program enables merchants to display the coveted Prime badge on their product listings without having to rely on Amazon's fulfillment service known as Fulfillment by Amazon. With this privilege, sellers are responsible for fulfilling orders promptly, offering one-day and two-day delivery to Prime customers at no extra cost. Prime customers pay a monthly subscription fee for expedited shipping and additional perks.

Enrollment Suspension and Recent Reopening

A few years ago, Amazon temporarily suspended enrollment in the Seller Fulfilled Prime program due to concerns that it did not meet the high-quality standards expected by Prime customers. However, two months ago, the company announced that it would reopen enrollment, suggesting that improvements and adjustments have been made to address past issues.

Increased Scrutiny and New Requirements

This recent imposition of fees aligns with the increasing regulatory scrutiny surrounding Amazon's market dominance and its treatment of third-party sellers. Additionally, in the notice, Amazon mentioned that new requirements, such as on-time delivery, will also be enforced moving forward.

Amazon's decision to introduce these new fees reflects its ongoing efforts to refine its services and maintain the highest standards for its customers and sellers alike.