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
Amazon “destroyed the retail industry across the US”
US Treasury Secretary criticizes Amazon US Treasury Secretary Steven Mnuchin said that Amazon “destroyed the retail industry across the United States”. In his opinion the attorney general should investigate the company alongside other tech giants in the...
Amazon is coming to Israel
Amazon to Launch in Israel in September Amazon has set its launch in Israel for September. Israeli Amazon retailers received notice of the planned launch earlier this week. Amazon is set to release a large campaign to increase awareness among Israelis,...
Amazon updates suspension policy for third-party sellers
New seller terms worldwide after German antitrust action Amazon made sweeping changes to its suspension policy for third-party sellers this week, following an intervention by Germany’s Federal Cartel Office. As part of a settlement it reached with German...
