Third-party merchants on Amazon who ship their own packages will see an additional fee for each product sold starting on Oct. 1st. Sellers could previously choose to ship their products without contributing to Amazon, but the new fee means members of Amazon’s Seller Fulfilled Prime program will be required to pay the company 2% on each product sold.
The new surcharge is in addition to other payments Amazon receives from merchants starting with the selling plan which costs $0.99 for each product sold or $39.99 per month for an unlimited number of sales. The company also charges a referral fee for each item sold, with most ranging between 8% and 15% depending on the product category.
Since the program launched in 2015, merchants could independently ship their products without paying a fee to Amazon but the new shipping charge may add pressure to switch to the company’s in-house service. As it stands, sellers can already incur other additional charges including fees for stocking inventory, rental book service, high-volume listings, and a refund administration fee, although Amazon does not list the costs on its website.
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Source: Amazon Now Punishes Merchants Who Ship Their Own Products
This is a problem where Amazon is using it’s position to create a logistics monopoly and putting other logistics firms out of business. Amazon should stick to being a marketplace and this should be enforced by government.
Robin Edgar
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