Tesco outlines plan to charge online suppliers new 'fulfilment fee'

It is currently unknown how much the charge would be for suppliers who sell on the supermarket's online platform
It is currently unknown how much the charge would be for suppliers who sell on the supermarket's online platform

Farmers and growers who supply Tesco will need to pay a new 'fulfilment fee' if they want the retailer to continue to stock their products online.

The controversial new fee will be applied to Tesco's online operations and it's app, as well as its wholesale operation, Booker.

Suppliers who sell products in Tesco's stores will not have to pay the charge, the retailer confirmed.

It is currently unknown how much the charge would be for suppliers who sell on the supermarket's online platform.

In a letter defending the move, the UK's largest retailer told its suppliers the fee would help cover the cost of serving its customers online.

Without introducing it, Tesco would "need to take additional decisions on range optimisation, differentiated price and trade plans".

A Tesco spokesperson said: “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.

“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.”

But calls have been made for the supermarket chain to be referred to the Groceries Code Adjudicator (GCA), with the regulator saying it was aware of the issue.

A spokesperson for the GCA added: "We encourage suppliers to get in touch with any concerns."