Amazon asks sellers to send it more stuff
Amazon is offering its third-party sellers discounts on storage fees as part of its plan to fulfill speedy shipping promises.
According to Business Insider, Amazon now offers a 75% discount on storage fees at its warehouses in exchange for storing best-selling items there.
This would enable Amazon to offer more items on its Prime one-day delivery service. The company recently announced that it would be reducing its speedy two-day shipping policy down to one-day.
If the plan works as expected, these merchants will sell more stuff and Amazon will be able to promote a large selection of one-day shipping inventory, reports CNET. Plus, consumers will benefit from faster shipping of more products.
Amazon’s third-party marketplace has become one of the most profitable areas of its business. Sales from these sellers now make up for more than 58% of the physical gross merchandise sold on Amazon, growing from $0.1 billion in 1999 to $160 billion in 2018.
CEO Jeff Bezos commented on the success of this arm of the business in the company’s annual letter to shareholders in April. “To put it bluntly: Third-party sellers are kicking our first party butt. Badly,” he said.
More Amazon news
China Coronavirus Update
Chinese companies start to get back to work Monday is the first official day back to work in China after the authorities extended the holidays in attempt to limit the spread of the coronavirus. In some provinces factories gradually start to resume...
China Extends New Year Holidays to Fight Coronavirus
Coronavirus Impact on Shipping from China China has announced the extension of New Year holidays until February 10-14 in order to stop the disease outbreak. In Hubei province businesses are not to reopen until at least February 14, according to People’s...
President Trump Delivers A Serious Blow to Amazon
Trump administration cracks down on counterfeitsPresident Trump has shifted liability for counterfeits from third parties to platforms, and that's disastrous news for AmazonLaw enforcement officials will immediately start to identify cases where...