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

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
peopleMathematician John Nash inspired the film Beautiful Mind
News
Richard Blair is concerned the trenches are falling into disrepair
newsGeorge Orwell's son wants to save war site that inspired book
Life and Style
Audrey Hepburn with Hubert De Givenchy, whose well-cut black tuxedo is a 'timeless look'
fashionIt may be a paradox, but the industry loves it
Arts and Entertainment
The pair in their heyday in 1967
music
Life and Style
fashionFrom bathing dresses in the twenties to modern bikinis
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Guru Careers: Software Developer

£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...

SThree: Trainee Recruitment Consultant / Resourcer

£18000 - £23000 per annum + Commission: SThree: As a Trainee Recruitment Consu...

Ashdown Group: UI Developer - (UI, HTML, CSS, JavaScript, AngularJS)

£25000 - £40000 per annum: Ashdown Group: UI Developer - (UI, JavaScript, HTML...

Day In a Page

Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine