CNBC | Amazon to Start Penalizing Sellers Shipping Unsafe Packages to Warehouse

CEO and Co-Founder, Fred Killingsworth, talks to Eugene Kim at CNBC about how some sellers are unaware of federal regulations when shipping products to Amazon.

By
Eugene Kim

Amazon is making third-party sellers more responsible about meeting package safety standards when they send inventory to be stored and shipped by Amazon. They recently rolled out new rules letting sellers know that they will charge penalty fees for packages that fail to comply with its safety requirements. This new move is expected to improve warehouse efficiency while reducing hazardous safety violations.

Hazardous issues arise mainly because third-party sellers are simply not aware of federal regulations when they ship their products to Amazon's warehouse. That makes it that much more difficult for Amazon to stay compliant, Killingsworth said.

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