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Amazon Postpones Controversial New Seller Fee
Amazon has announced a temporary suspension of a contentious new fee for sellers for the entire month of April. This move aims to provide merchants with additional time to make necessary adjustments and potentially avoid incurring the fee.
Background of the Fee
The fee, initially slated to come into effect on April 1, specifically targets products sold through Amazon’s Fulfillment by Amazon (FBA) service that consistently maintain low stock levels in comparison to their sales volume. Under this service, sellers can opt to have Amazon handle the storage, packaging, shipping, and customer service for their items.
Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, acknowledged the apprehension among many sellers regarding the potential impact of the new fee on their operations.
According to Mehta, the month of April will serve as a “transition period,” during which sellers can gauge the fee’s implications on their business dynamics. Throughout April 1 to 30, sellers will incur the fee but will receive corresponding credits by month-end.
Vendor Support and Reassurance
Mehta emphasized Amazon’s commitment to supporting its selling partners by enabling them to adapt in real-time to any necessary adjustments to circumvent future fees. Sellers can proceed with business activities during the transition period with the assurance that any incurred fees will be reimbursed.
Mehta also stressed that the fee is expected to have minimal impact, if any, on the majority of sellers, indicating that it would be an infrequent occurrence for those subject to the fee.
Additionally, aside from the low-inventory fees, Amazon sellers in the U.S. are set to face new “inbound placement fees” if they fail to distribute inventory to a minimum of four Amazon warehouses, as reported by Fortune.
Regulatory Scrutiny and Industry Response
March saw the Federal Trade Commission launching an investigation into Amazon’s new fee structures, including the stipulation mandating product distribution across at least four warehouses. Sellers have expressed concerns over these fees potentially prompting them to reassess their presence on the platform, with some arguing that the fee on low inventory unfairly penalizes them despite also incurring charges for excess inventory in warehouses.
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