A reduced commission rate for sellers may mean lower prices for you.
Being an Amazon Prime member allows you to often find affordable items from the ease of your own home—but when it comes to online grocery shopping, you’ll find that many items are often packaged in bulk or come at a much higher price than you'd find at the supermarket.
Amazon is aware of this issue and is taking steps to streamline the shopping process and lower prices for nonperishable food items on its site. Recode reports that Amazon has told its sellers and suppliers that it will reduce the 15 percent commission it takes on grocery items priced at under $15 to just 8 percent until late 2018.
Those looking to sell grocery staples or specialty items on Amazon often have to pay a commission rate and additional fees to be included in the Prime program. To maximize their profits and reduce the blow of Amazon’s commission rate, sellers will often package items in bulk—which can mean a more expensive bill for shoppers.
While there are other programs (with additional membership fees) in place to reduce the often outlandish cost of buying a single grocery item, like Prime Pantry or Amazon Fresh, the average Amazon shopper has noticed that buying single grocery items often comes at a steep price.
With Amazon choosing to reduce their commission rate, we’re hoping that sellers will now be able to offer more items affordably as a standalone purchase.