Amazon Adds a New Fee For Sellers Who Ship Their Own Packages

Amazon is adding a new charge for third-party sellers who ship their own products instead of paying for the company's fulfillment services. CNBC reports: Beginning Oct. 1, members of Amazon's Seller Fulfilled Prime program will pay the company a 2% fee on each product sold, according to a notice sent to merchants last week, which was viewed by CNBC. Previously, there was no such fee for sellers. "We're updating our requirements for Seller Fulfilled Prime to ensure that it provides customers a great and consistent Prime experience," the notice states. An Amazon spokesperson told CNBC in a statement that the company instituted a fee for SFP members due to the costs of developing and running the program. The SFP program, launched in 2015, allows third-party merchants to sell their products with the Prime badge without paying for Amazon's fulfillment services, known as Fulfillment By Amazon. The SFP program hasn't attracted as many users as FBA has, given that sellers are expected to meet the company's Prime delivery standards, such as speedy shipping and weekend service. In June, Amazon reopened sign-ups for the invite-only program, after it suspended enrollment in SFP in 2019. The e-commerce giant also charges sellers a referral fee between 8% and 15% on each sale. Sellers may also pay for things like warehouse storage, packing and shipping, as well as advertising fees.

Read more of this story at Slashdot.