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 will add 15 more planes to its Prime Air fleet
Amazon Prime Air gets more planes to boost one-day shipping Amazon announced that it will add 15 more Boeing 737s to its fleet as it seeks to grow its delivery business and get packages to shoppers' doorsteps faster. Amazon is in the midst of speeding up...
One-day shipping makes Amazon shoppers spend more
The reason why Amazon is heavily investing in faster delivery Amazon shoppers who get same-day delivery are likely to spend and shop more on the e-commerce site compared with shoppers who don’t get same-day delivery. The survey data, collected by the...
Four standout business tips from Jeff Bezos
Jeff Bezos addresses the audience at the Amazon re:MARS conferenceAmazon CEO Jeff Bezos talked about a range of subjects at the re:MARS conference, but he seemed most excited when asked for simple business advice.Here are five of his standout quotes from...
