“We’re updating our requirements for Seller Fulfilled Prime to ensure that it provides customers with a great and consistent Prime experience,” the notice mentioned. However, Amazon is yet to respond about the new fee.
What is the SFP program
In 2015, Amazon launched the SFP program to allow third-party merchants to sell their products with the Prime badge. These sellers also didn’t need to pay for Amazon’s fulfilment services, known as Fulfillment By Amazon (FBA).
In comparison, the SFP program hasn’t attracted as many users as the FBA. However, in SFP, sellers need to meet the company’s Prime delivery standards, which include speedy shipping and weekend service.
In June 2019, Amazon suspended enrollment in SFP. The company reopened sign-ups for the invite-only program earlier this year.
Apart from this, Amazon also charges sellers a referral fee between 8% and 15% on each sale. Also, sellers may need to pay for other things like warehouse storage, packing and shipping, as well as advertising fees.
FTC’s looming lawsuit a concern for Amazon
Amazon’s marketplace is reportedly under the scanner of multiple antitrust investigators both in the US and abroad. Multiple regulators suspect that the company uses its dominance to squeeze the merchants that sell on its platform.
Regulators are examining whether Amazon pressurises sellers into using its services for getting preferential treatment in the marketplace.
US Federal Trade Commission (FTC) is also reportedly planning to file a long-awaited lawsuit against Amazon. The agency is investigating the company on multiple fronts which include its treatment of sellers on the marketplace.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
