// Tesco suppliers and farmers fear the grocer’s new fulfilment fees could put them out of business
// The supermarket giant is set to introduce new “Amazon-style” charges to each item sold through its UK and Ireland website as well as through its app
Tesco suppliers and farmers have warned new fulfilment fees imposed by the grocer on produce sold through its website could put them out of business.
The supermarket chain wrote to suppliers last week explaining it would introduce new Amazon-style ‘fulfilment fees’ applied to each item sold on Tesco.com, Tesco.ie and through its app to help cover rising online costs.
The new fees are understood to be 12p per item for branded goods and 5p for own brand, which Tesco has since said is up for negotiation with each supplier, The Times reported.
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The charges will also apply to all orders for retail and catering customers made through the grocer’s wholesarm arm, Booker.
Tesco informed suppliers that those who don’t comply with the new fees could face the threat of range reviews or reduced prices.
The new charges could apply as early as Monday but the supermarket giant said there was no deadline to sign up.
A Tesco spokesperson told Retail Gazette: “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.”
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