Amazon to Charge Sellers Extra Fee if They Do Not Use Its Logistics Services — By How Much?

A new policy by Amazon was revealed. It was reported that the company would charge sellers an extra fee for those not using its logistics services.

The extra fee centers on sellers that ship out the products sold on the platform themselves, and if they opt not to let Amazon handle the logistics of sorting it out in warehouses and shipping, a possible fee is coming their way.

It comes as Amazon faces a possible antitrust probe from the Federal Trade Commission (FTC) that will look into the company's operations and policies for sellers.

Amazon to Charge Sellers Extra If They Opt to Ship Products

Reports from Bloomberg and CNBC are now centering on Amazon imposing a new fee on sellers who do not use the company's logistics services. Despite selling on Amazon, some sellers opt not to let the company handle the logistics for their products.

With this, Bloomberg reported that thousands of third-party sellers who ship products themselves will start paying an extra 2 percent fee on each sale beginning October 1.

In particular, it will apply to members under its Seller Fulfilled Prime (SFP) program. The 2 percent is reportedly on top of the 8% to 15% commission merchants usually pay to Amazon to sell products on the web store.

Amazon paused the application for the SFP program in 2019, only reopening it last June as an invite-only program. Bloomberg reported that the company made it to satisfy regulators. Several sellers also told Bloomberg that Amazon did not explain why the additional fee was required.

Amazon Is Set to Face an Antitrust Probe, Amidst Extra Fee

According to The Verge, Amazon is already facing a possible antitrust probe against its 8% to 15% commission on every order on the platform.

However, the company will still implement the extra charge for sellers who do not use its fulfillment service, which is being pushed in accordance with its same-day delivery.

Amazon's Antitrust Concerns and E-Commerce

A looming FTC case is shadowing Amazon, led by the newly-appointed FTC chair Lina Khan, centering on its fulfillment logistics. It was announced last June, with Amazon already possibly facing this kind of concern for its massive market manipulation, especially to its sellers on the platform.

Still, Amazon highly leverages its logistics and shipping as the top-notch service it promises customers, centering on same-day delivery upon order for a specific item.

While this is a perk for buyers and consumers to get the product on the same day or after one day, it also requires merchants to have this product readily available in their warehouses to follow the schedule.

Amazon may have improved its logistics and deliveries with a rapid turnaround time from a buyer purchasing the product to arrive immediately. However, it still faces antitrust problems regarding its market behavior.

Amidst the antitrust probe, Amazon is looking to impose an extra charge for those who will not comply, which might be another issue against the firm in the future.