The American online retailer will charge a lower fee to merchants for selling goods on its marketplace in an effort to cut down Alibaba market share.Amazon.com is creating tough competition for its rivals. Recently, the online retailer has slashed its charges, effective from July 1, to sell smartphone screen protectors, USB cables as well as other flat, small items, which can fit in envelopes. Through this initiative it poses a possible challenge to its competing online marketplaces owned by Wish.com, eBay and Alibaba that connect China based merchants with American shoppers.
Sellers would pay $1.61 to deliver 3, one ounce packages, 67% lower than the present price, revealed the e-mail obtained by Bloomberg. The change distinguishes between flat, tiny items that can fit in big envelopes and products thicker than 50% of an inch, which are subject to higher charges. The new charges apply to sellers availing the Seattle-based organization’s Fulfillment By Amazon Small and Light program, launched in 2015 to provide shoppers delivery free of charge on a large number of tiny items like stickers, cellular phone accessories and make up.
Majority of the inventory is offered for sale by outside sellers who offer the web retailer a share of every sale for delivery, packaging and managing storage. Several items are offered at a cost of $10 or lesser, keeping delivery costs low necessarily for profitability. In the United States, Amazon shoppers order millions of goods yearly that fit the light as well as small dimensions, revealed company documents assessed by Bloomberg News.
United Parcel Service, Amazon as well as FedEx Corporation have censured the program by telling the Congress, stating the charges are not fair to US merchants that pay a greater amount of money to deliver a product to a consumer in their own state than a Chinese seller pays to make the delivery of the same product from abroad.
Amazon refused to comment. The organization’s program faces rivalry from online shopping platforms that let Chinese sellers directly deliver to American shoppers through the ePacket program, a contract between the China Post and US Postal Service that offers Chinese sellers low-priced access to American consumers on tiny packages with a weight of as much as 1.7 kilograms (4.4 pounds).
Chinese sellers delivering on the US online marketplace can also deliver the ordered items themselves through ePacket, meaning that the organization gets a lower amount of money by selling than if it had delivered and packed. The USPS delivered 27 million small orders from China through ePacket in the financial year 2012, revealed an audit by the Inspector General of agency, an amount that will probably keep increasing with the expansion of online marketplaces across the globe.
Sellers would pay $1.61 to deliver 3, one ounce packages, 67% lower than the present price, revealed the e-mail obtained by Bloomberg. The change distinguishes between flat, tiny items that can fit in big envelopes and products thicker than 50% of an inch, which are subject to higher charges. The new charges apply to sellers availing the Seattle-based organization’s Fulfillment By Amazon Small and Light program, launched in 2015 to provide shoppers delivery free of charge on a large number of tiny items like stickers, cellular phone accessories and make up.
Majority of the inventory is offered for sale by outside sellers who offer the web retailer a share of every sale for delivery, packaging and managing storage. Several items are offered at a cost of $10 or lesser, keeping delivery costs low necessarily for profitability. In the United States, Amazon shoppers order millions of goods yearly that fit the light as well as small dimensions, revealed company documents assessed by Bloomberg News.
United Parcel Service, Amazon as well as FedEx Corporation have censured the program by telling the Congress, stating the charges are not fair to US merchants that pay a greater amount of money to deliver a product to a consumer in their own state than a Chinese seller pays to make the delivery of the same product from abroad.
Amazon refused to comment. The organization’s program faces rivalry from online shopping platforms that let Chinese sellers directly deliver to American shoppers through the ePacket program, a contract between the China Post and US Postal Service that offers Chinese sellers low-priced access to American consumers on tiny packages with a weight of as much as 1.7 kilograms (4.4 pounds).
Chinese sellers delivering on the US online marketplace can also deliver the ordered items themselves through ePacket, meaning that the organization gets a lower amount of money by selling than if it had delivered and packed. The USPS delivered 27 million small orders from China through ePacket in the financial year 2012, revealed an audit by the Inspector General of agency, an amount that will probably keep increasing with the expansion of online marketplaces across the globe.