Amazon will reportedly make grocery brands pay for Prime Day losses
Amazon is waiving the Prime Day placement fee to instead charge fees for missed promo sales across grocery stores, a report says.
Corinne ReichertSenior Writer
Corinne Reichert (she/her) grew up in Sydney, Australia and moved to California in 2019. She holds degrees in law and communications, and currently writes news, analysis and features for CNET across the topics of electric vehicles, broadband networks, mobile devices, big tech, artificial intelligence, home technology and entertainment. In her spare time, she watches soccer games and F1 races, and goes to Disneyland as often as possible.
I've been covering technology and mobile for 12 years, first as a telecommunications reporter and assistant editor at ZDNet in Australia, then as CNET's West Coast head of breaking news, and now in the Thought Leadership team.
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According to the report, though, Amazon will then waive the usual $500 placement fee to run Prime Day promotions for these grocery brands.
"This year we've decided not to charge placement fees for inclusion in deal events, but instead we request our vendors to fund a [deal] if it's unprofitable for the duration of the deal," the email from Amazon reportedly said. "If additional funding is required, it will be based off total unprofitable units sold for the duration of the deal."
Amazon didn't immediately respond to a request for comment.