Amazon scraps charge for merchants not using its delivery service

Amazon Prime label on boxes
Amazon Prime (Image credit: Amazon)

Amazon will now scrap plans it had to charge merchants using its Seller Fulfilled Prime service for not using Amazon logistics.

According to documents seen by Bloomberg, under the program, merchants can use “supported carriers,” including non-Amazon carriers, to deliver products under the Prime badge so long as they meet minimum requirements, such as same-day or next-day delivery.

The company’s plans to scrap the 2% fee, which was announced in August 2023 and was due to come into force on October 1, comes amid rising tensions between it and US regulators, who are expected to launch an antitrust investigation into the company.

Merchants using Prime can continue to use third-party logistics

An Amazon spokesperson told TechRadar Pro in an email: “We’re committed to supporting sellers’ success, which includes listening to their feedback. The 2% Seller Fulfilled Prime fee was intended to cover our costs, but after careful consideration we’ve made the decision not to implement this program fee to ensure seller sentiment related to the fee does not impact program participation.”

Rumors of a US antitrust investigation are heating up and the Federal Trade Commission (FTC) is expected to file a case against the company as soon as this month, with part of it focused on the ecommerce giant’s alleged efforts to coerce sellers into using its own delivery services.

Amazon Prime continues to be a hugely successful business for the company, having expanded in many directions in recent months. Merchants can now offer Buy with Prime across third-party sites in an effort to make the buying process simpler for customers.

It’s not just merchants that Amazon looks to be encouraging to use its Prime service. Earlier this summer, the company told us that it was “testing a $35 minimum for non-Prime customers to qualify for free shipping” in some regions, noting that “Prime members continue to enjoy free [same-day and next-day] delivery.”

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Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!