3 ms·
> So companies are making less on the products they sell through Amazon because as you say "sellers want to do is pass that fee on to the customer" but can't be
by aflag 3y ago
> So companies are making less on the products they sell through Amazon because as you say "sellers want to do is pass that fee on to the customer" but can't because Amazon's policies prevent this and this bad for the consumer because?
Amazon doesn't prevent them to pass that fee to the customer. They do that. However, that means that other places the fee is also included in listings outside of amazon (which means more profit for the seller). The problem is that now the customer have to essentially pay for amazon, regardless if they use it or not. For the seller this particular thing is not that much of an issue.
> You also didn't explain why businesses are forced to use Amazon. Is it not possible for companies to just not sell if they can't charge the consumer 10% more as they would like?
Amazon has a de facto monopoly on e-commerce. So, sellers are incentivised to have their products there. They don't have to, but they will probably make more money if they do. That just feeds the monopoly and make the customer worse off.