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Amazon cutting shipping fees for small, flat items

Move is in response to competition from marketplaces that help Chinese merchants ship directly to US shoppers

Published Thu, Jun 16, 2016 · 09:50 PM

Seattle

AMAZON.COM Inc is slashing fees it charges merchants to sell USB cables, smartphone screen protectors and other small, flat items that can fit in envelopes, posing a potential threat to competing marketplaces owned by Alibaba Group Holding Ltd, eBay Inc and Wish.com that connect Chinese sellers with US shoppers.

The new rates will take effect on July 1, according to an Amazon e-mail to marketplace sellers obtained by Bloomberg News. Merchants would pay US$1.61 to ship three, flat, one-ounce (28 grammes) packages, 67 per cent less than the current price, according to th…