Skip to main content

Amazon's New Fee Policy for Sellers: Changes to Fulfillment Services Explained

Amazon is reportedly set to introduce an additional fee for sellers who opt not to utilize the company's fulfillment service, according to reports from both Bloomberg and CNBC. Information gleaned from documents examined by these outlets indicates that Amazon will commence the imposition of a fee on each product that merchants choose to ship independently.

This fee is anticipated to take effect starting October 1st and will be applicable to sellers who are part of Amazon's Seller Fulfilled Prime (SFP) program. Unlike the Fulfillment by Amazon (FBA) service, the SFP initiative enables third-party vendors to directly sell Prime-designated products from their own warehouses, bypassing Amazon's involvement in the logistical process. Consequently, sellers participating in SFP are obligated to maintain the swift delivery standards of one to two days, including weekend shipping, as outlined by the Prime service.

Although Amazon initially introduced the SFP offering back in 2015, it suspended new enrollments in 2019. The reopening of the program's waitlist only recently took place in June of this year, a move reportedly made by Amazon to appease regulatory authorities. The motivation behind Amazon's decision to introduce this fee remains unclear, and the company did not promptly respond to queries from The Verge seeking more details.

The impending 2 percent fee arrives at a possibly inopportune moment for Amazon, as there are indications that the Federal Trade Commission is preparing an antitrust lawsuit against the retail behemoth. This new fee also compounds the existing 8 to 15 percent commission that Amazon already deducts from orders conducted on its platform.

Nevertheless, this additional charge could be interpreted as Amazon's strategy to incentivize sellers towards adopting its in-house services, thereby affording the company greater control over the logistical aspects while capitalizing on the escalating costs of the FBA service. However, such a move could potentially attract heightened regulatory scrutiny, particularly given that a seller previously accused Amazon of coercing merchants to use its FBA service back in 2019.

Popular posts from this blog

Signal Introduces Usernames for Encrypted Messaging: A Secure Way to Connect

Signal, the encrypted messaging service, is launching a new feature in the coming weeks: support for usernames. This beta feature allows users to establish unique usernames, enabling connections without divulging phone numbers. source: Signal Blog To create a username, navigate to your settings and select "Profile." Once you've chosen a unique username, generate a QR code or link to share with others. Recipients can connect by entering your username into the chat bar. Usernames can be changed at any time, though previous usernames may be claimed by others. Signal began testing usernames last fall. Unlike social media platforms, Signal usernames do not serve as logins or public handles. They offer a discreet means of communication without revealing personal phone numbers. While a phone number is required to register for Signal, sharing it is optional. Usernames remain private and do not appear on profiles or in chats unless shared explicitly. As Randall Sarafa, Signal'

Safeguarding Internet Privacy: Supreme Court of Canada Upholds Protection of IP Addresses

In a recent ruling, the Supreme Court of Canada affirmed the significance of privacy rights concerning internet addresses. The court declared that police cannot simply obtain a suspect’s IP address without a court order, emphasizing the expectation of privacy that Canadian residents hold for such information. The court's decision stemmed from a case in 2017 involving Calgary police investigating fraudulent online activities at a liquor store. Initially, police demanded IP addresses from a credit card processor, which eventually led to obtaining subscriber information from Telus. This information was pivotal in making arrests and securing convictions in multiple offenses. Despite previous convictions, the accused contested the legality of obtaining IP addresses without proper authorization. The Supreme Court, in a 5-4 decision, asserted that IP addresses carry a reasonable expectation of privacy, necessitating judicial approval before access. The ruling emphasizes that obtaining jud

AT&T Resets Millions of Customer Passcodes After Data Leak: What You Need to Know

AT&T recently confirmed a significant data breach affecting over 7.6 million current customers and 65 million former customers. The leaked information, which dates back to 2019 or earlier, includes personal details like names, addresses, phone numbers, and social security numbers. Fortunately, financial information and call history were not compromised. In response to the breach, AT&T has reset passcodes for affected customers. Passcodes, usually four-digit numbers, serve as an additional layer of security when accessing accounts. However, security experts warn that the encrypted passcodes leaked alongside customer information could be easily deciphered, posing a risk of unauthorized account access. Affected customers are advised to set up free fraud alerts with major credit bureaus and remain vigilant for any suspicious activity related to their accounts. AT&T is proactively reaching out to impacted customers via email or letter to inform them about the breach and the meas