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Sellers On Amazon Who Ship Their Own Packages Need To Pay An Extra Fee

Media 2 Mins Read August 17, 2023 Posted by Soumava Goswami

Amazon is about to impose a new fee for the members of Amazon?s Seller Fulfilled Prime program. In this program, the merchant sellers ship their own packages to the receiving customers, and they have permission to include the Amazon Prime badge on their product listing on the website.

The members of the Seller Fulfilled Prime program need to pay Amazon a 2% fee for each sale from the start of 1st October. Many experts are of the opinion that this move from Amazon comes at a time when the United States Federal Trade Commission is expected to file a long-awaited lawsuit against Amazon.

With the update, Amazon provided a notice,

?We?re updating our requirements for Seller Fulfilled Prime to ensure that it provides customers a great and consistent Prime experience.?

However, when requested to comment upon it, Amazon representatives did not respond immediately.

According to CNBC.com,

?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.?

Amazon launched the Seller Fulfilled Prime program in 2015. With this program, Amazon allows third-party merchants on the Amazon website to sell their products and allows them to sell with the Prime badge as well. Till now, they do not have to pay for the badge, which is a part of Amazon?s Fulfillment services.

Apart from this fee, the sellers on Amazon also need to pay a referral fee of 8% to 15% on every sale. Sellers also pay for other stuff like storage in warehouses, packing, and shipping, as well as fees for advertising on Amazon.

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A passionate writer and an avid reader, Soumava is academically inclined and loves writing on topics requiring deep research. Having 3+ years of experience, Soumava also loves writing blogs in other domains, including digital marketing, business, technology, travel, and sports.

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