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- Amazon told third-party sellers on Monday that it's cutting fulfillment fees for products sold outside of Amazon's marketplace.
- The price cuts come as competition in the third-party logistics space is growing.
- Big players like UPS, FedEx, and Walmart all want a piece of this market, while startups like Deliverr and Flexe have also grown their share.
- It also reflects Amazon's fulfillment efficiency, after having invested billions of dollars in the space in recent years.
- Visit Business Insider's homepage for more stories.
Amazon is cutting fulfillment fees for products sold outside of its marketplace, just a week after Walmart rolled out a competing service.
In an email sent out to third-party sellers Monday afternoon, Amazon said it's reducing rates by up to 30% for certain products that use its Multi-channel Fulfillment Service (MFS). The discounts will take effect on April 1.
Sellers use MFS to store and ship non-Amazon products, like those sold on their own websites or other marketplaces - similar to how they use Fulfillment by Amazon (FBA) for products sold on Amazon's own marketplace.
"We are pleased to announce that we are lowering Multi-Channel Fulfillment (MCF) fees," Amazon said in the email, obtained by Business Insider.
The price cut comes at a time when competition in the third-party logistics space is intensifying. Big players like UPS, FedEx, and Shopify have launched their own fulfillment services in recent years, while startups like Deliverr and Flexe are also growing their share. Walmart, which introduced its own fulfillment service last week, said it plans to start fulfilling non-Walmart products in the future too.
The change also reflects the efficiency Amazon has achieved with its fulfillment service. Amazon invested roughly $3 billion in improving its logistics network last year, shortening its standard delivery time to one-day. For FBA, Amazon raised fees by just 3% this year, a relatively small increase compared to competitors. On Tuesday, Amazon announced faster delivery options for same-day delivery.
Amazon's representative didn't respond to a request for comment.
More details about the price discounts can be found at Amazon's website for MCF. Here's the full pricing chart Amazon shared in its email to sellers on Monday:
Amazon
