Amazon will reportedly charge new fees from sellers who ship their own products
Amazon will impose new fees on merchants who ship their own products to customers instead of using the company's fulfillment service, starting from October 1, 2023.
The new fees will affect sellers who are members of Amazon's Seller Fulfilled Prime Program (SFP), which allows them to display a Prime badge on their listings without using Amazon's fulfillment service, Fulfillment by Amazon (FBA). However, they have to fulfill orders with one-day and two-day delivery at no additional charge for Prime customers.
Earlier, the company made an announcement at the seller-central platform that it will reopen new seller enrollment for the Seller Fulfilled Prime (SFP) on October 1, 2023. Amazon said that sellers need to pass a 30-day SFP trial to be eligible to enroll.
To start the trial, sellers need to meet these pre-qualifications:
To start the trial, sellers need to meet these pre-qualifications:
- Seller's default shipping address must be in the US You must have a Professional selling account on Amazon.
- Seller must have achieved these performance standards in the last 90 days.
- Seller must have self-fulfilled at least 100 packages.
- Cancellation rate must be lower than 2.5%.
- Valid tracking rate must be higher than 95%
- Late shipment rate must be lower than 4%
“We’re updating our requirements for Seller Fulfilled Prime to ensure that it provides customers a great and consistent Prime experience,” the notice states as reported in a report by CNBC. However, the company did not immediately respond to a request for comment by the news outlet.
The new fees are not the first time Amazon has raised its charges for sellers. In April 2022, the company added a 5% "fuel and inflation surcharge" to fees it charges third-party sellers who use its fulfillment services.
The SFP program, which was introduced in 2015, enables third-party merchants to offer their products with the Prime badge without using Amazon’s fulfillment services, also known as Fulfillment By Amazon. The SFP program has not been as popular as FBA, since sellers have to comply with the company’s Prime delivery standards, such as fast shipping and weekend service.
The new fees imposed by Amazon on sellers who ship their own products are likely to spark more controversy and criticism from the seller community and regulators. The fees could also affect the prices and choices available for customers who shop on Amazon's platform. While Amazon claims the fees are justified by the benefits it provides,
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Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.