- This Agreement comes into play if you select the “Collect” option for your Freight Method for your Purchase Orders to Amazon instead of the “Prepaid” option which means that you pay for your own freight.
- As Amazon obviously receives highly competitive rates for their shipping, selecting “Collect”, which means that Amazon pays for freight, is arguably the preferred option of most Vendors.
- However, you, as the Vendor, will need to pay for these competitive shipment rates in the form of the Freight Allowance.
- This Agreement normally starts around 5% but can increase over the years.