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
Trump is targeting Amazon and Alibaba
President Trump signs trade memorandum on counterfeit products President Donald Trump puts Amazon, Alibaba, eBay and other online marketplaces on notice, signing a memorandum that aims to curb the sale of counterfeit items online. “This is a shot across...
Drunken online shopping is big business — especially for Amazon
Drunk shopping is an estimated $48 billion industry 85 percent of drunk shoppers visit and make ill-advised purchases on Amazon Tech and business newsletter The Hustle surveyed more than 2,000 alcohol-drinking adults about their online shopping behaviour...
Jeff Bezos: Smart people make decisions differently than everyone else
Smart people tend to change their mind a lot Smart people are open to new points of view, new information, new ideas, contradictions, and challenges to their own way of thinking Jason Fried, co-founder of Basecamp and co-author of the New York Times...