Amazon "squeezes" sellers, and collects fees openly and secretly

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

Amazon, an e-commerce platform, "squeezes" sellers, and constantly collects fees openly and secretly

AmazonAlwaysAmazon MarketplacePlatform for external enterprises to sell products through AmazonAs one of its biggest success storiesyesAmazonAmazon SellerAnd customers. But a new report says that these benefits are increasingly biased towards Amazon.

1、 Amazon is charging more and more seller fees

From non-profit organization "Local Self Reliance"ILSRofOne copyAccording to the report,AmazonLevy various fees from the seller,Draw more and more shares from the seller's income.

Blue Ocean Yiguan has learned that,According to the analysis of ILSR, the cost of sellers is increasing every year, which makes some sellersCan't do itAmazon's profits are growing.

oneThe new ILSR report found that Amazon's seller fees in 2014useOn average, it accounts for 19% of the seller's income.By 2021, this proportion will almost double to 34%.

twoIn 2014, the seller's expenses accounted forAmazon14% of total revenue, butBy 2021, the proportion will be as high as 25%.According to ILSR estimates, Amazon onlycollectSeller's expensesIt will earn 121 billion dollars.

B2b Amazon "squeezes" sellers, and collects various fees openly and secretly

ILSR states that these revenues translate into substantial profitsEven more than AWS, they are nowyesAmazonThe most profitable partIt is also the fastest growing source of income.

According to Amazon's financial data, AWS will make a net profit of $13.5 billion in 2020. ILSR estimates that sellers earn a net $24 billion in commissions.

Because sellers pay high fees to Amazon, customers may face soaring prices, even if they are in Amazonoutsideshopping. Maybe this is a good business strategy for Amazon, because it really brings returns to the company. Some sellers on Amazon platform said they were very satisfied with this arrangementAt least for nowthis much

IIAmazon usesPolicies suppress sellers

But more and more people believe that AmazonE-commerce industryDominance ofAnd its influence on sellers led to anti competitive behavior,yesAmazon's competitors, overall competition and consumersAll cause damage

Regulators and members of Congress accused Amazon of abusing its market dominance. The report highlights how Amazon uses its powerCracking down on small enterprises,And raise prices for consumersAnd why Congress must act toAmazonMake clear rules.

Amazon disagrees with the findings of the report,He called the report "deliberately misleading", confused its mandatory fees with optional services, and called it "seller fees".

Amazon insists that all its charges, whether mandatory or non mandatory, are more competitive than those for similar services, and many sellers have obtainedsuccess。 butquite a lotThe seller thinks that if they want the enterprise to maintainoperate, justThese ostensibly optional fees must be paid

IIIThe seller's expenses mainly come from saleslogisticsAnd advertising

sellerEvery item sold requires a referral fee,I.eAmazon commission. Over the years, this proportion has remained at 15%According to productCategory, may be higher or lower。 According to ILSR, these referral fees accounted for the majority of the seller's fees in 2017.

Since then, however, most of Amazon's expenses have come fromFBA。 Advertising revenuealsoSteady growthMore and more sellers pay more advertising fees to obtain Amazon searchupperThe projecting position of.

oneFBA SellerPay Amazon according to the size and type of items sold. The seller must also pay to ship the goods in or outAmazon Distribution CenterAnd store the goods there.

Amazon said that FBA's price is competitive compared with similar distribution services, andNo enforcementSeller uses FBA.

But for many sellers, FBAstaylogisticsAdvantages inIs not the only attraction.Joining FBA is the only way for most sellers to obtain Prime service qualification.

Amazon ShoppersEspecially 200 million Prime membersMore likely to buyAmazon PrimeProducts. But it's not just free shipping. Another reason is thatBuy BoxMechanism, consumers may not see non prime products at all.This allows more sellers to pay for FBA.

twoIn addition to FBA, the seller also pays more and more fees to Amazon in other ways to generate sales.

Amazon has recently vigorously entered the field of digital advertising, and seller advertising is part of its strategy. Critics accuse Amazon of adding sponsoredposition, andCharging higher fees for advertising。 Amazon said that the number of ads varies and the price is determined by auction.

Because of this, some sellers feel that they pay more but get less. Amazon itself said that these ads have increased the visibility of products and can be translated into more sales.

But it also means that,Through strong sales andpositiveProducts obtained from commentsstaynaturalLower visibility in search results

The seller is already working withAmazon fromcampproductCompetition in this field may be unfair, because it is reported that AmazoncampproductofrankingIt is higher than other products with higher ratings. Amazon refuted these reports, saying that its ranking model did not consider that products were produced by AmazonIt is also provided by a third-party seller.

According to Blue Ocean Yiguan,In a statement to Recode,AmazonInsist that FBA and advertising are not mandatory, and only when the seller needs additional services, they will pay for them.

(Polly ZhangNew media of cross-border e-commerce - Blue Ocean Yiguan website domain news) connects with high-quality resources of cross-border e-commerce.Wal Mart, CoupangWayfair 、Mercado Libre and other platforms settledBrand copywriting planning, network wide promotion, e-commerce training, incubation and other services, please contact us. No unauthorizedRewriting, reprinting, copying, clipping and editingIn whole or in part.

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