Amazon Is Pocketing Half of Retailers’ Sales

Merchants on Amazon Marketplace are paying the company a commission fee of more than 50% of each sale. A new report by Marketplace Pulse revealed Amazon raised the total cost sellers are required to pay out toward storage fees at company warehouses, packaging and delivery, and advertising on the site.

The commission fee has gradually risen since 2016 according to the report, but sellers were not heavily impacted because of an influx of customers and a substantial increase in sales during the covid-19 pandemic. But the report said that sales plummeted when the lockdowns lifted and buyers turned to things like travel and dining out rather than online shopping. The residual effects meant that Amazon suffered its slowest sales growth since its inception.

Marketplace Pulse reported that Amazon receives a 15% transaction, or referral fee, from the sellers who also pay between 25% and 35% in Fulfillment fees and 15% toward advertising and promoting on the site.

The average fees Amazon collected last year rose to 51.8% from 35.2% in 2016


Source: Amazon Is Pocketing Half of Retailers’ Sales

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