Tesco criticised by suppliers over online fulfilment fees

Tesco has received criticism from its suppliers and farmers after they were informed of new fulfilment fees, which are to be imposed by the retailer on produce sold online, The Times has reported. 

This comes as the supermarket chain wrote to suppliers last week informing them that it would introduce ‘Amazon-style fulfilment fees’, which are to be applied to each item sold on its website and app to help cover mounting online costs.

According to The Times, the new fees will stand at 12p per item for branded goods and 5p for own brand. However, the retailer has since said the exact fees are negotiable. 

In addition, the charges will also apply to the retailer’s wholesaler, Booker. 

While there is no deadline for suppliers to sign up to the new scheme, Tesco told its suppliers that new charges could apply as early as Monday (today). 

The retailer also conveyed that those who do not comply with the new fees could face stock price reductions, as well as the threat of range reviews.

A Tesco spokesperson told The Times: “Over recent years, the way we serve our customers has grown in both capacity and complexity. Our customers expect us to serve them wherever, whenever and however they want to shop. 

“As we respond to changing shopping habits and our fulfilment costs continue to grow, we are talking to our suppliers about how we can work together to create a more balanced approach and ensure we can continue to invest in our customers.”