Fees going up.....again!


#21

Hi well not really because it is us as a seller who is going to take the brunt not amazon or anyone else.
Some items your going to be able to increase but not all, for us we sell own brand and wholesale our wholesale is very competitive already if we increase price it will result in less sales so its a fine line but ultimately us as a seller is going to take the brunt.
The purpose of the tax is to hit the big company’s not the small but its doing exactly that unfortunately.


#22

the customer will eventually pay the tax, wait and see!


#23

Hi please explain how?
We would all love to known as at the moment it’s us that’s going to take the brunt of it.


#24

Its only 2% on 15%… for example… so 15% becomes 15.3%… Hardly a massive increase.


#25

Note: The businesses that are liable are NOT supposed to be us. Who here has a revenue over £500m worldwide and more than £25m UK?

I predicted exactly this on another thread only last week when I said that if there were some sort of online tax Amazon would pass it straight on to us.

Amazon are just so predictable.

The government should have made it so that Amazon couldn’t do this, but then again they’re just as predictable too.


#26

Yes poor Amazon having to pay all that tax.

If only there was some sort of worldwide crisis where everyone had to stay at home buy everything online. Then Amazon would be awash with money and wouldn’t have to get that tax from… hang on a minute… :thinking:


#27

Please excuse my ignorance. So referral fees have gone up but do we have to pay 2% on top of our sales too?

Lets say the amazon fees gone up can I draw a line there?


#28

I’m amazed anybody is surprised Amazon has passed the charge on to its customers (us) to be honest. I’m sure many of you won’t choose to absorb the costs yourselves and will most likely up your selling price to your own customers to pay the extra costs you are being charged by Amazon so where is the difference?


#29

Sciver! Put some effort in :joy:


#30

I guess the difference is that Amazon is a marketplace and as such ‘competition’ for the sale of products means that sellers competitively fight to keep their prices the lowest. Amazon know this. They absolutely know that their platform is designed to drive prices down even when sellers costs are rising. They simply don’t care otherwise they would have absorbed this 2% or took a share of the taxation instead of passing 100% onto the seller.


#31

Yes, I’m kind of where I want to be, I’m at a different stage in my life to a lot of the other people on here, I just want to make enough to not have to commute into London every day but not so much that I have to register for VAT!


#32

They are bleeding us dry. I am seriously considering switching some of my faster moving lines onto EBay


#33

yeah taxes are to high in this country but you need a certain amount of taxes or society collapses


#34

Why aren’t they already on ebay. Spread the net as wide as you can.


#35

well i suppose the customer pays by sellers putting their prices up


#36

I’m hoping HMRC will put a stop to this. Its not our tax to pay and that email in no uncertain terms are explaining our fees are going up to pay for it.


#37

No its on everything. FBA fees storage fees.


#38

amazon are continually inflating their fees and costs and the way I see it they aren’t going to benefit out of all this because overall prices on amazon are just going to rise, for example we sell some stuff in electronics and the 12% to 15% increase earlier this year put amazon fees higher than ebay and paypal combined, I’ve raised my amazon prices, however our items are cheaper on other channels and considerably cheaper if customers purchase direct,
Our amazon sales are lower than every other channel, If that’s what they want to become less competitive then it’s certainly working,

I’m not really bothered about the increases as I seriously believe it’s them that will suffer because it will drive more sales away from them,

I’m more annoyed about the way they’ve simply passed it on, Has anyone spoken to their MP or the media about this?


#39

Don’t forget the 50p increase in closing fee on books coming soon. Is amazon blaming that on DST as well I wonder?


#40

I would guess most sellers on Amazon do Ebay anyway. It is not a choice to do one or the other, you can do both.
Ebay are actually worse offenders than Amazon. First the sponsored search on Ebay means you lose rank for natural and have to up the costs to make it less competitive and you end up paying more. Also ebay are switching to managed payments and for anyone that uses paypal micro payments for small transactions, you are far worse off.
No matter how big or small you are, as soon as someone wants a bigger slice of the cake, you have to try and increase the cake and inevitably someone will lose out if you want to keep the same size slice.
The Government have increased the taxes for Amazon and Amazon can either pass it on or absorb it and they have chosen to pass it on. We then have the same choice to either pass it on or absorb it. If you absorb it then the chance is that the cake will get bigger but you end up with a smaller proportion. You can of course pass the cost onto the customer and take more money to cover the cost or the buyers will reduce and you will end up with less income and higher costs.
It is all well and good saying ebay is an option, but to be fair their costs are higher than Amazon since the sponsored search is shot to bits and Ebay don’t bring anything to the table.