Report: Amazon increasing third-party delivery requirements

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Report: Amazon increasing third-party delivery requirements

By Dan Berthiaume - 08/19/2020

Third-party sellers on the Amazon platform will reportedly face stricter delivery deadlines.

In an Aug. 18 email, Amazon reportedly informed third-party sellers that they will need to make Saturday deliveries and meet one- and two-day shipping deadlines beginning in February 2021. Sellers who do not comply may lose the right to display a Prime fast-shipping badge on the Amazon site.

According to Amazon, it is enacting the change because third-party sellers often make late deliveries. Bloomberg reports that some legal experts say there could be antitrust implications, as the stricter standards may force sellers to use Amazon logistics and fulfillment services that are pricier than competing services from providers such as FedEx, UPS, and the USPS.

However, GlobalData retail analyst Neil Saunders told Bloomberg that Amazon is actually responding to increased pressure for fast fulfillment from rivals such as Walmart, negating antitrust concerns.

“Anything that’s a monopoly doesn’t have to respond to competitive conditions in this manner,” Saunders said. “Amazon is working overtime to make sure it meets delivery promises and improves the experience because customers have more choices about where they can shop online.”