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Why Things on Amazon are Getting so Pricey - Amazon Sellers are now Paying More Than 50% Commission

Posted By: RumorMail
Date: Tuesday, 14-Feb-2023 11:07:31
www.rumormill.news/217279

Most of the time, I forgo anything on Amazon. Occasionally, if my local Hardware, or box store doesn't have a thing in stock, I'll order from Amazon. Only if I need it ASAP.

A curious thing began to happen to Amazon, several years ago. People would go and clear out a section of Home Depots screws, or nutz and bolts, then mega inflate the price to sell it on Amazon. They did it with grocery store items, as well.

*****************************

Transaction, logistics, storage, and advertising fees all add up
By Rob Thubron

In brief: Amazon is tightening its grip on the merchants who sell their goods on its site, charging an average of more than 50% commission on every sale. The amount sellers pay Amazon has been rising every year for six years, but this is the first time the average cut has been more than half the amount each sale generates.

According to a study by Marketplace Pulse, a typical Amazon seller pays an 8 - 15% transaction fee, or referral fee, to Amazon on every sale. They must also hand over 20 - 35% in Fulfillment by Amazon fees, which include storage and other fees, and up to 15% for advertising and promotions. Bloomberg gives the example of a merchant whose fire pit costs $200, of which Amazon takes $112.

The average fees Amazon collected from merchants last year totaled 51.8%, a considerable increase compared to 2016, when that figure was 35.2%. Marketplace Pulse writes that while the 8 - 15% transaction fee has stayed the same for over a decade, but Amazon has raised Fulfillment by Amazon fees every year and introduced increases in storage fees.

more
https://www.techspot.com/news/97598-amazon-sellers-now-paying-more-than-50-commission.html




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