Amazon focuses on grocery profits

Seattle-based Amazon is starting to charge grocery brands “additional funding” if their sales don’t meet the company’s expectations on this years’ Prime Day. 

According to an email sent to CNBC, this change is supposed to “fund the profitability gap” of such products, which Amazon purchases as wholesale and then sells on its own.

In return, Amazon is waiving the placement fee required to run Prime Day promotions, which typically costs $500 per deal.

“This year we’ve decided not to charge placement fees for inclusion in deal events but instead we request our vendors to fund a [listing] if it’s unprofitable for the duration of the deal,” Amazon’s email to vendors said. “If additional funding is required, it will be based off total unprofitable units sold for the duration of the deal.”

To read the CNBC article, click here.