Higher seller fees will be passed on to customers, and Amazon is the only winner?

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

The higher seller fees of the cross-border e-commerce platform will be passed on to customers. Is Amazon the only winner?

Amazon Seller FeesNow it is getting higher and higher. In order to make profits, sellers will increase their prices. andAmazon's Fair Pricing PolicySo that the seller can not provide lower price products on other platformsAmazonInside and outside, customers can only buy more expensive products.

Blue Ocean Yiguan has learned that,ILSRThe report found that,In 2014, Amazon's seller fees accounted for only 19% of the seller's income on average, but they have been rising in recent years, reaching 34% in 2021.

IBoth sellers and buyers can only choose Amazon

1. When the seller has to raise the price to make upAmazonWhen the cost increases, they usually pass these costs on to customers, that isPrice rise

2. Moreover, due to Amazon's fair pricing policy, the seller must provide the same price as Amazon on other platforms. Even if the sellerThe cost of selling on other platforms is lower, and the price has to rise.

3. If they do not, Amazon finds that the seller offers the same product at a lower price on other platforms, thenAmazon seller account or listing may be suspended。 Many sellers are reluctant to take this risk, which may cause a devastating blow to their business.

4. Amazon's policy may mean that when the seller raises the price (to offset Amazon's expenses), the price in other places will eventually be higher. This also makesOther e-commerce platforms are more difficult to compete with Amazon, challenge Amazon's market dominance because they can't offer lower prices to attract more customers.

The lack of choice means that if sellers want to reach a large and loyal customer base, theyBasically, you can only choose Amazon.Amazon is usually the first place for online shoppers to find products, even ahead of search engines. Especially AmazonPrimeMembers will give priority to Amazon.

The fair pricing policy and Amazon's potential to raise prices on the Internet are the basis for the District of Columbia to file a lawsuit against Amazon, and also the basis for Amazon customers to file a class action lawsuit last year.

IISmall businesses are "suppressed" by Amazon

rootAccording to VoxAmazon sellers let Amazon occupy the US e-commerce market40% to 50% shareIn some product categories, Amazon's share is much higher. The closest platform competitor to AmazonWal-MartOnly 7%.

Large, established companies canNikeAs we did in 2019, we still did well after withdrawing from Amazon. But most enterprises do not have this ability. Ken Buck, the chief member of the House Judiciary Antitrust Subcommittee, told Recode that,Small businessThere is no other choice in the digital economy. Amazon continues to use its monopoly power to suppress competition.

One solution is to involve legislators and regulators. Some companies are trying to do this: the European Commission announced last year that it was investigating whether Amazon was deciding who would getBuy BoxAmazon and FBA sellers are given priority treatment when "opening the back door".

IIIAmazon Faces Anti competition and Anti monopoly Investigation

According to the 16 month investigation of the House Anti monopoly Subcommittee on Amazon and other platforms, several members of Congress have proposed a bill to ban some of Amazon's anti competitive practices.

According to Blue Ocean Yiguan,The committee accused Amazon of attracting customers and sellers through artificially low prices and Prime membership, which resulted in an increase in interest rates immediately after Amazon's market dominance was guaranteed.

The proposed legislation wouldForbid Amazon to put its products in a prominent position, unless it obtains this position through natural ranking, it is also prohibited to ask the seller to pay for advertising or FBA and other services to obtain priority position.

One of the bills wouldForbid Amazon from competing on a platform it owns, and may force Amazon to split into a first party sales company and a company that operates the platform for third-party sellers.

Amazon responded that it did not think these measures were necessary and denied that it had done anything wrong.According to Vox, Amazon has been emailing some sellers to warn them of the pending antitrust laws,It may be difficult or impossible for sellers to sell their products on Amazon.

ResearchAmazonIndustry insiders who have practiced business for many years believe that the best solution can be said to be the most radical. Policymakers can regulate Amazon's charges, basically treating it as a regulated shopping monopoly, just like public utilities. But a better and more market-oriented approach is to split Amazon's main divisions into independent companies.

(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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