Paying to Sell

Amazon is now currently charging their partners, who sell things through the website, a significant amount for shelf space in the months of November and December. The charges are based on every item per cubic foot leaving only room for the hottest products on the shelf. This effort will keep the selves rotated with products the people want compared to having outdated items sitting around. Amazon has discouraged items that may not sell well before the end of the year in order to utilize the most space at the right times of the year. Surge pricing is when a company raises the prices due to a sudden increase in demand. During the holiday, many stores look to amazon to sell their items on the website as a network. However, amazon is now charging more money for people to stock the shelves of the warehouses for the months of November and December. Other companies such as UPS are also applying the concept of surge pricing. It does make sense to surge price too because it keeps current products rotated and available at the right time for the right place. It may not be the best for the little man trying to sell his product on that website. However, for the consumer and Amazon, both are getting the upper hand with either a better deal or better cash flow. My prediction is they will be one of the top sellers this holiday season along with many to come.