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

7/21/2017

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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