Third party sellers enraged about Amazon’s new fees

29 March 2013

Small third party traders who use Amazon to shift their secondhand books/vacuum cleaners/novelty Lionel ‘Rich Tea’ mugs, are fuming with the mega retailer, who is hiking its selling fees from 7% to 12% after Easter.

The price rises are causing much distress, but so powerful is Amazon that the smaller traders feel powerless to defend themselves. One UK trader said that he was worried the fees would destroy his small business, but there was no arguing with the might of the online company, which last year boasted worldwide sales of $21.3bn.

Amazon is becoming something of a retail Godzilla, chomping up the high street and destroying businesses. They're also, of course, sidestepping paying tax in Britain by registering all their UK sales in Luxembourg. (Which is what Godzilla would have done too, if he knew anything about accountancy.)

But small third party traders make up an important part of Amazon’s success, with 2 million traders using the network worldwide.

So will this price rise cause small retailers move back to ebay instead, or are we all Amazon’s bitches now?

TOPICS:   High Street News   Technology   Economy


  • Idi A.
    Gumtree could mop up a LOT of business if they got their act together.
  • Fatherb
    eBay fees are pretty much the same. I agree with @idi, gumtree would clean up if it sorted out a payment mechanism.
  • Euan
    Gumtree's owned by eBay...
  • Tick
    ebay's fee's will be cheaper and i think they offer free listings now too so....move to ebay?
  • Colin
    Why do BW keep harping on about companies not paying uk tax, how much does your parent company pay again?
  • therealchewbacca
  • Idi A.
    @ Euan Bugger!
  • Karyn S.
    If eBay points this out, then third part sellers will go to them.
  • Marky M.
    Now that Play are ONLY third-party, surely they just have to lower their fees and they'll win?
  • oliverreed
    Huge lulz @Colin, sticking it to the man. Option 1: Pay tax Option 2: Legally re-route funds not to pay tax It's not a tricky choice is is, I'll admit it would be option 2 for me - why can't everybody at BW Towers see that?
  • jack p.
    Fleabay 10% plus 4% just who is robbing who here? Both twats
  • Mort
    Ebay is a joke when it comes to selling any sort of single product. Much quicker to list and fewer idiots to deal with (buying the stuff or running the site) Amazon sellers won't leave. It will just mean the marketplace prices will be a few percent higher.
  • Marc
    Yet another useless article from BW, actually fees are based on category so there is a rise of this in some category's but not all Important: Upcoming Changes to the fees schedule on 4 April 2013 On 5th February 2013, we launched a new category and a new store for Electronics Accessories. The Electronics Accessories category will have the following referral fees on the UK, German, French, Italian and Spanish Amazon Marketplaces: 12% or 0.50 GBP/EUR minimum fee per unit, whichever is higher Your current Electronics Accessories listings were automatically moved to the new category when it launched on 5th February 2013, but the new category fees will not take effect until 4th April 2013. For more information, see the following Help page: Referral fees in other product categories on the Amazon EU Marketplaces are also changing. On 5th February 2013, we lowered the following referral fees: UK Marketplace: Tyres - was 12%, changing to 10% UK, German, Spanish, Italian Marketplace: Video Games Consoles - was 15%, changing to 8% * French Marketplace: Video Games Consoles - was 10.44%, changing to 8% * French Marketplace: PC Hardware, PC Peripherals and TVs - was 7%, changing to 5% * * This is a 6 month promotion running up to and including 5th August 2013. On 4th April 2013, we will be increasing the following referral fees: UK Marketplace: Automotive - was 12%, changing to 15% German Marketplace: Tyres - was 7%, changing to 10% French Marketplace: Books, Music, Video VHS, DVDs, Video Games, Software: was 10.44% + VCF, changing to 15% + new VCF from 0.45 EUR
  • kizi
    ebay’s fee’s will be cheaper and i think they offer free listings now too so….move to ebay?
  • Sicknote
    So many cowboys on Amazon these days; I guess they came across from ebay when their feeds went up as well..
  • algernon
    a retail Godzilla, chomping up the high street? forget it amazon. click and collect is fighting back. who wants to miss and rearrange deliveries?

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