Retail in Asia

In Trends

Amazon’s sellers unhappy about fee hikes, eye rivals

A brewing conflict between Amazon.com and its merchants over fee hikes could benefit rival eBay, and provide an opening for Wal-Mart Stores and Google, which are just getting into the space.

Amazon’s online bazaar generates margins many times higher than traditional retail as the company takes a cut of every sale on its site made by a merchant, known as a third-party seller, and charges extra fees for handling logistics.

The growth of this business, which now accounts for almost 40 percent of unit sales, has helped push Amazon shares to record highs. But a series of fee hikes over the past year and a half have alienated many merchants, and some are threatening to defect.

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(Source: scmp.com)