OPERATIONS

Amazon’s fulfillment arm will pay full price to bolster global inventory

BY CSA STAFF

Amazon is making its marketplace sellers an offer that is hard to refuse.

The online giant’s Fulfillment by Amazon (FBA) division is rolling out a new program that will buy products from third-party merchants at full price, then sell them to consumers across the globe. The program is a move to build Amazon’s global inventory, according to CNBC.

According to an email shared with CNBC, Amazon said, “For a limited time, there will be no additional fees, and we will purchase inventory from you at your local marketplace offer price.”

Amazon contacted thousands of third-party retailers via e-mail inviting them to take part in the new program. While Amazon would take a loss on profits, the online giant expects the program to boost delivery efficiency.

The new program follows a similar rollout in Europe, according to the report.

With FBA, merchants pay a fee to have their inventory stored in Amazon's fulfillment centers, and utilize the company's supply chain and shipping operations. In 2016, FBA delivered more than 2 billion items worldwide, and active sellers worldwide using the FBA service grew more than 70%, according to Amazon.

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