Third-party sellers who choose to ship directly to clients rather than utilize Amazon’s fulfillment service will now be subject to new fees.
According to a notice from the firm, starting on October 1, it will receive 2% of each item sold by merchants that are part of Amazon’s Seller Fulfilled Prime Program, or a minimum of $0.25 per item.
The Sellers Fulfilled Prime program, which was introduced in 2015, enables retailers to show a Prime badge on their listings without utilizing Fulfillment by Amazon, Amazon’s fulfillment service. In exchange, vendors must complete orders for Prime customers—who pay a monthly fee for speedier shipping and other benefits—with one- and two-day delivery at no additional cost.
A few years ago, Amazon discontinued participation in the program, claiming that it wasn’t providing the same superior experience that Prime consumers had come to expect.
The online retailer announced it would resume enrollment two months ago. The revelation is released as regulators’ scrutiny of Amazon’s market dominance and treatment of merchants grows.
The business announced in the notice that it will set new standards for items like on-time delivery.