Amazon takes half of every sale made by its merchants

, By Team SNFYI
Amazon takes half of every sale made by its merchants
E Commerce

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Amazon.com Inc. is squeezing more money from the nearly 2 million small businesses that sell products on its vast online marketplace as sales growth slows and costs rise.

For the first time, Amazon’s average cut of each sale surpassed 50% in 2022, according to a study by Marketplace Pulse, which sampled seller transactions going back to 2016. The total cost of selling on Amazon was calculated by adding the commission on each sale, fees for warehouse storage, packing, and delivery, and money spent to advertise on a site with hundreds of millions of products competing for attention. It is optional to pay Amazon for logistics services and advertising, but most merchants consider these to be a necessary part of doing business.

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Amazon takes half of every sale made by its merchants

, By Team SNFYI
Amazon takes half of every sale made by its merchants
E Commerce

Amazon.com Inc. is squeezing more money from the nearly 2 million small businesses that sell products on its vast online marketplace as sales growth slows and costs rise.

For the first time, Amazon’s average cut of each sale surpassed 50% in 2022, according to a study by Marketplace Pulse, which sampled seller transactions going back to 2016. The total cost of selling on Amazon was calculated by adding the commission on each sale, fees for warehouse storage, packing, and delivery, and money spent to advertise on a site with hundreds of millions of products competing for attention. It is optional to pay Amazon for logistics services and advertising, but most merchants consider these to be a necessary part of doing business.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Previous News
UAE to launch hydrogen-powered car fuel station
Next News
CCI to close its probe against Apple’s app store and billing policies
Team SNFYI

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