Amazon Marketplace is an e-commerce platform owned and operated by Amazon.com that enables third-party sellers to sell new or used products on a fixed-price online marketplace alongside Amazon’s regular offerings. Using Amazon Marketplace, third-party sellers gain access to Amazon’s customer base, and Amazon expands the offerings on its site without having to invest in additional inventory.
Items purchased on Amazon from third-party sellers are either fulfilled by the merchant (FBM) or by Amazon (FBA). FBM goods are kept in the third-party seller’s inventory, and shipping and customer service are handled by the third-party merchant. FBA goods are stored in Amazon’s fulfillment centers, and shipping and customer service are handled by Amazon.
Amazon charges its third-party merchants a referral fee for each sale which is a percentage of the sales price. Additionally, sellers using FBA must pay additional fees which include a pick, pack and weight charge.
Third-party sales on Amazon account for around 40% of Amazon’s annual sales.
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