October 22, 2024 – 8:50 AM PDT
(Reuters) – Amazon.com (AMZN.O) is imposing severe price caps on what merchants can charge for their products on a new low-cost storefront that the e-commerce giant is preparing to launch, the Information reported on Tuesday.
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The company’s price limits include $8 for jewelry, $13 for guitars and $20 for sofas, according to the report, which cited messages from Amazon to merchants. The messages included a list of 700 items, it said.
Amazon plans to ship orders to U.S. customers directly from a facility in Guangdong, China, the report said, adding that it was charging sellers lower fulfillment fees for items sold through the new storefront.
“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience,” an…
