Amazon is raising charges on third-party sellers again —- this time adding a holiday fee for merchants who use the company’s fulfillment services to pack and ship items to customers
To use Amazon’s fulfillment services, merchants already have to pay a fee that varies based on an item’s size, weight or category.In the notice sent Tuesday, Amazon noted the holiday season increases fulfillment and logistics costs due to the volume of shipments being transported. The company said it previously absorbed these cost increases. But seasonal expenses were now “reaching new heights," it said.
“Our selling partners are incredibly important to us, and this is not a decision we made lightly,” the company said.Holiday pricing adjustments are not novel to Amazon. Last week, the U.S. Postal Service said it filed a notice to implement a temporary price hike to cover extra handling costs during the holiday season.
But at Amazon, seller fees — and their repeated increases — are a subject of contention since the company controls a vast share of the e-commerce market. Critics argue the company’s excessive fees could potentially lock out merchants from its marketplace. “Corporations that have monopoly power tend to raise prices, and that’s what we’re seeing here,” said Stacy Mitchell, an Amazon critic and co-director for the anti-monopoly group Institute for Local Self-Reliance. “Amazon’s dominance of the online market means that small businesses have little choice but to pay up.
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