Amazon Slashes Seller Fees on Grocery Items
SEATTLE, WA – Amazon has made no bones about its plans to dominate grocery retail. And just months after entering brick and mortar grocery in a big way by acquiring Whole Foods, the largely online retailer is making strategic moves to improve its ecommerce selection.
A recent report by tech news source Recode unveiled plans to slash fees for independent grocery sellers operating on Amazon.com. The company has lowered fees charged on grocery items under $15 from 15 percent to eight percent.
“To help you list more products and keep prices competitive, we are offering you a limited-time referral fee discount on Grocery products,” said an email obtained by Recode. “This fee promotion starts at 12:00 a.m. October 15, 2017 (PST), and will run through 11:59 p.m. October 14, 2018 (PST).”
The news source noted that this move is intended to broaden Amazon’s grocery selection as Walmart makes a concerted effort to grow its online presence. Amazon’s new seller fees will significantly undercut Walmart’s. The Bentonville-based retailer charges 15 percent across the board for items sold through its online market, though its subsidiary reportedly charges only 10 percent fees for “non-gourmet packaged foods.”
While currently being billed as a temporary promotion on non-perishable goods, the move could prove enticing to grocery sellers looking to trim margins.
To read more about Amazon’s plans, read the entire report here.
Will Amazon continue to shrewdly expand into fresh food, and what impact will it have on our industry? AndNowUKnow will continue to report.