Monday 20 November 2017

Amazon facing trader backlash after raising fees by up to 70pc

Parcels ready for dispatch at an distribution centre
Parcels ready for dispatch at an distribution centre

 Third-party companies who list their products for sale on Amazon are seeing the cut they have to give the US retailing giant rise from 7pc to 12pc from April 4.

However, sellers in certain sectors will be hit even harder. People selling car parts, for example, will see fees increase from 12pc to 15pc.

Angry traders took to online bulletin boards to protest at the move.

“Now that Amazon has all the power they’re imposing increased fee hikes to all those cosy sellers who have supported Amazon since day one,” one US seller wrote.

Amazon’s decision to hike fees has raised the possibility of traders opting to list their products on rival eBay instead.

One unnamed seller, who generates more than £1m in revenues via Amazon said: “At the moment I am putting all my efforts into eBay.”

He said the cost of doing business on eBay would be much lower.

Amazon has told sellers the fee rises followed the roll-out of a “web store” category for electronic items.

“The new store will help to improve customer experience by providing a central destination for millions of unique electronic accessories products, a more intuitive browse structure, and other features,” the company said last month.

Amazon, the world’s largest online retailer, revealed in January that operating income jumped 56pc to $405m in the fourth quarter of 2012, up from $206m in the same period a year earlier.

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