Amazon Resumes Third-Party Shipping Service
Amazon.com has revived its shipping service, paused during COVID-19's onset, competing with FedEx and UPS. Amazon Shipping lets sellers ship Amazon and external platform orders. Businesses must sell on Amazon to be eligible for the service. Amazon already provides shipping to merchants who use its storage and delivery service, Fulfillment by Amazon. Amazon Shipping allows sellers to use the company’s delivery services without storing their products in its warehouses. It operates only for domestic shipments. Amazon is imposing a new fee on merchants who don’t use the company’s logistics services.
Total Retail's Take: This decision further moves Amazon into the logistics space, adding pressure to established carriers UPS and FedEx. What will it mean for the seller experience? Amazon is pressuring its sellers to use its logistics and delivery services by adding new fees to those who choose alternate fulfillment and delivery methods. Starting in October, thousands of third-party merchants that ship products via Amazon’s Seller Fulfilled Prime program will start paying a 2 percent fee on each sale, according to documents reviewed by Bloomberg. With the holiday shopping season approaching, Amazon sellers will have to weigh multiple factors, including cost, convenience, speed, among others, when choosing a fulfillment and shipping provider for the busiest time of the year.