Sellers revolt as Amazon hikes fees for traders by up to 70 per cent
It overtook eBay as the preferred marketplace for traders to use to sell their goods. But online retailers may be soon returning to eBay in droves after Amazon put up its fees for traders by as much as 70 per cent.
Third-party traders, who list their wares on Amazon.co.uk, are seeing the cut they have to give to Amazon rise from seven per cent to 12 per cent from April 4 – an increase of 71 per cent.
In some sectors, the proportion they lose is even greater – for example, people selling car parts through Amazon.co.uk will see their fees increase to 15 per cent from from 12 per cent.
Sellers through other Amazon websites around the world – who number 2million in total - will also have their margins cut by having to pay higher fees to the online retail giant.
Similar rises were brought in in America in January.
Angry traders took to bulletin boards to vent their frustration. One angry American wrote: "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."
In the last three months of 2012 worldwide revenue for Amazon grew by almost a quarter to $21.27bn (£14bn).
Amazon rules state that vendors cannot offer their wares elsewhere for a lower price. Yesterday some were threatening to beak the stipulation, in order to make up for the lower margins due to the fee rise.
"We are not supposed to, but we will have to have higher prices on Amazon," one British trader was reported as saying.
And an American third-party merchant, Kat Simpson, told website 4trades.com: "If you are selling items under $25, you won't do as well on Amazon as on eBay profit wise."
Amazon has informed sellers that the fee rises followed the introduction of a new "web store" category for electronic accessories.
"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," it wrote last month.
A petition calling on Amazon to “pay their fair share of tax in the UK” has been signed by 100,000 people. Amazon had sales in the UK of £3.35bn in 2011 but only reported a "tax expense" of £1.8m.
The petition was launched after MPs alleged Amazon was avoiding UK taxes by reporting European sales through a Luxembourg-based unit, meaning it could pay less than 12 per cent on foreign profits.
Andy Street, chief executive of John Lewis, has accused Amazon of "destroying the UK tax base" through this practice
- 1 Three of Pope Francis' relatives die in Argentina car crash, including two young great-nephews
- 2 Michael Brown shooting: Amnesty International sends team within US for first time as National Guard deployed
- 3 Here’s the damning letter Robin Williams wrote to his Mrs Doubtfire co-star's principal after they expelled her
- 4 Ferguson protests: 90-year-old Holocaust survivor Hedy Epstein ‘arrested’ by police during St Louis demonstrations
- 5 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
Syria conflict: President Assad finally turns on Isis as government steps up campaign against militant strongholds
Michael Brown shooting: Amnesty International sends team within US for first time as National Guard deployed
Ice Bucket Challenge: Lady Gaga, Justin Bieber and Oprah – the most entertaining reactions so far
Iraq crisis: Islamic State's message to America - 'We will drown you all in blood'
Ferguson: In the heartlands of America, a descent into madness
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Ukip MEP calls for reintroduction of death penalty on fiftieth anniversary of last deaths
Russell Brand calls for Israel boycott: Comedian urges big businesses that 'facilitate the oppression of people in Gaza' to pull funding
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
£65000 - £70000 Per Annum: Clearwater People Solutions Ltd: Our client based i...
£25000 - £30000 Per Annum: The Green Recruitment Company: Job Title: Energy En...
£475 - £550 per day + competitive: Orgtel: Senior Technical Accountant-Insuran...
£25-£30k Plus Car: Charter Selection: Major well established nationwide market...