Amazon has revived its shipping service, paused during COVID-19's onset, competing with FedEx and UPS. Amazon Shipping lets sellers ship Amazon and external platform orders.

Confirming that services have resumed, the company spokesperson said, businesses must sell on Amazon to be eligible for the service.

The Seattle-based retail company already provides shipping to merchants who use its storage and delivery service, Fulfillment by Amazon. Amazon Shipping allows sellers to use the company’s delivery services without storing their products in its warehouses. It operates only for domestic shipments.

Services were previously tested

Amazon had previously tested the program but paused in 2020 due to pandemic-related order surges on its platform, concentrating on internal order management.

“We’re always working to develop new, innovative ways to support Amazon’s selling partners, and Amazon Shipping is another option for shipping packages to customers quickly and cost-effectively," Amazon spokesperson Olivia Connors said in a statement, as reported by ABC News.

“We’ve been providing this service for a while with positive feedback so we’re now making it available to more selling partners," Connors said.

Amazon expanded its logistics operations during the pandemic to manage surging online orders. As the pandemic eased, the company faced excess warehouse space nationwide, prompting actions like subleasing, lease terminations, and delaying new construction.

Shipping speeds improved, with over 50% of Prime orders in top US metro areas arriving within a day during Q2 this year, showcasing Amazon's fastest Prime speed ever. The company intends to double its same-day delivery sites to enhance customer service further.

Amazon imposing fee on sellers who ship products themselves

Amazon.com Inc. is imposing a new fee on merchants who don’t use the company’s logistics services, a change many of these sellers consider coercive and surprising since the US government is poised to file an antitrust lawsuit against the e-commerce giant, Bloomberg report cited

Thousands of third-party merchants who ship products via Amazon’s Seller Fulfilled Prime program will start paying a 2% fee on each sale in October, according to documents reviewed by Bloomberg. That’s on top of the commission — usually 15% — that merchants already pay Amazon to sell products on the popular web store.

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