In a recent article, Amazon announced that it will impose a 2% per-item fee on sellers using Seller Fulfilled Prime (SFP) starting in October. This new fee appears to signal Amazon’s confidence in warding off potential antitrust challenges. Jason Boyce, founder and CEO of Avenue7Media and a former Amazon power seller, expressed deep concerns over the move. He described it as a “slap in the face to sellers,” emphasizing the difficulty in meeting SFP standards and fulfilling the Prime Delivery Promise. Boyce believes the fee is an unfair burden on sellers who are already struggling to maintain their Prime status.
The article also notes Amazon’s initiative to compete against TikTok by offering influencers a relatively low payment of up to $25 per video to promote Amazon products. Boyce opined that the company would need to increase these fees for greater influencer engagement. He also pointed out that Amazon often starts with enticing offers only to reduce them later. Boyce concluded by stating that although social media isn’t Amazon’s forte, the retail giant’s determination to excel in every sector it enters should not be underestimated.
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