12p per branded item, 5p for own brand: Negotiable fees to cover online costs

  • Tesco introduces new online fulfilment fees for suppliers
  • Fees of 12p per item for branded goods and 5p for own brand products
  • Fees aim to cover mounting online costs
  • Charges may apply to wholesaler Booker
  • Non-compliant suppliers face stock price reductions and range reviews

Tesco has faced criticism from suppliers and farmers after announcing new fulfilment fees to be imposed on produce sold online. The retailer informed suppliers of ‘Amazon-style fulfilment fees’ to help cover mounting online costs, with the fees standing at 12p per item for branded goods and 5p for own brand products. However, Tesco stated that these fees are negotiable. The charges will also apply to wholesaler Booker. Suppliers have no deadline to sign up to the new scheme but may face stock price reductions and range reviews if non-compliant. A Tesco spokesperson explained: ‘As we respond to changing shopping habits and our fulfilment costs continue to grow, we are talking to suppliers about how we can work together to create a more balanced approach and ensure we can continue to invest in our customers.’

Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (The Times) and presents objective reporting of Tesco’s new fulfilment fees policy without any personal perspective or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information on Tesco’s new fulfilment fees for online sales and the potential consequences for suppliers who do not comply. It also includes a statement from Tesco explaining their reasoning behind the changes. However, it could benefit from more in-depth analysis of the impact on the industry or comparison with other retailers’ strategies.
Financial Relevance: Yes
Financial Markets Impacted: Tesco’s suppliers and Booker
Financial Rating Justification: The article discusses Tesco imposing new fulfilment fees on its suppliers, which can impact their profit margins and potentially lead to changes in stock prices. This is relevant to financial topics as it involves costs and business operations of companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk