E-tailer’s cut jumps from 7 per cent to 12 per cent, sellers call for Government intervention

Amazon fee hike upsets third party traders

Amazon has enraged its third-party sellers with a planned hike in hosting fees for its Marketplace service.

According to The Guardian, the increase is planned for all sellers in the UK and four other European countries, including France and Germany, and follow hikes already made in the United States in January.

Third party sales now account for two out of every five transactions made through Amazon, and has seen faster growth than the rest of the company’s operations.

Ostensibly, the rate rises are to help Amazon introduce a new ‘web store’ concept that it says 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.”

However, anonymous sellers told the Guardian: “We didn’t ask for a new store or new category that Amazon have forced on us. Customers don’t tend to browse a store either – they enter what they’re looking for in the search box.

“The government needs to step in and regulate the marketplace sector so businesses and the merchants’ livelihoods, and their employees, feel protected. Selling on Amazon is a big risk.”

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