The pressure and discontent from resellers was too much for Amazon. The company is backtracking and won’t apply the 2% extra fee to Prime sellers who don’t use its internal delivery service.
The project has been in the works since this summer. Amazon had decided to apply a pricing policy which was to come into effect from 1er october. This targeted independent Prime resellers who delivered their products independently, thus bypassing Amazon’s warehouses and its delivery services. Unfortunately for the company, the 2% additional fee did not go down well with those involved. Faced with discontent, Amazon backpedals.
The origin of these costs and their abandonment
This increase was clearly intended to push resellers to use the internal logistics service rather than letting them manage their deliveries alone. But it was obviously a little too much for the taste of certain merchants, who already have to pay commissions ranging from 8 to 15% which went directly into Amazon’s pocket. This is not the first time that the company has received criticism regarding abuse of a dominant position.
If we are to believe the information transmitted by Bloomberg, the decision was abandoned primarily due to Amazon’s concerns about the opinions of these sellers. Even Jonathan Hillson, the firm’s public relations manager, confirmed this information. Indeed, the risk of sellers being dissuaded from participating in the Prime program was too great. Amazon had justified these fees by explaining that they would be used to “cover its costs”, without however dwelling too much on the subject. Since the official announcement in August, no more precise explanation had been formulated.
The impact on the Seller Fulfilled Prime program
The fees in question would have only affected sellers participating in the Seller Fulfilled Prime program. This allows merchants to continue to deliver their product in total independence while retaining the valuable “Prime” label. A label which is of significant interest to resellers, since it assures buyers of rapid delivery compared to traditional delivery. This also prevents merchants from entrusting their products to Amazon and having full control of their logistics.
This cancellation decision takes place in a rather tense context for the American giant, which finds itself in the crosshairs of the FTC (Federal Trade Commission). The organization is seriously considering filing a complaint against Amazon due to the deterioration of its relations with resellers and for the implementation of anti-competitive practices.
Source : The Verge
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