Amazon merchants fed up with fee hikes; Google, Ebay could benefit

amazon-logoHigher shipping costs and extra fees could cause Amazon third-party merchants to move away from the Seattle online giant to competitors like Google, Ebay and Wal-Mart.

That’s the report from Reuters today, noting several people on Amazon’s online seller forum who complained of the high fees, many which have gone into effect in the past year.

If competitors like Google and Ebay come in with lower shipping fees and fewer extra costs, that very well could entice Amazon merchants to change. Google is already preparing to launch something called “Google Shopping Express,” a same-day shipping service designed to compete with Amazon Prime.

There’s already a post on the forums about the Reuters piece today. Here are a few responses:

From user “Lake”:

It’s always a pleasure to read about sellers who are too stupid to survive.

And even better when we learn they need to supplement their income by spreading their stupidity to others (for pay).

And there is even more pleasure in seeing the press naively believing the losers.

A good start to the week.

From user “Twin_Rivers_Books”:

And then go to the Ebay boards and hear them complain about Ebay and how things are better on Amazon. And it goes back and forth all day everyday.

In 10 years the only fee hikes we’ve ever had here are the one’s for CD’s and DVD’s. That’s nothing to complain about.

If people are looking for happy and perfect, then online selling is not the way to find it.

Last Friday, two small merchants filed a class-action lawsuit against Amazon, claiming that Amazon did not pay them after 90 days and broke its own terms of agreement, as well as Washington state law.

Previously on GeekWire: Amazon downgraded by JP Morgan over slower growth

  • junat

    This is killing my small business. http://www.zooligan.com only charges 7% of final sale i think I will be trying them

  • Slaggggg

    For a lot of small web merchants, Amazon is a devil’s bargain.
    They bring a ton of volume and sales. You can turn those things into better FedEx discounts, which benefits your whole business.
    But then you do have to put up with:
    – Amazon takes a 15% commission, plus all of their handling fees. Hard to make money after that.
    – Amazon accepts nearly anything as a return, even an empty box. You have to pay for that.
    – Amazon’s technical support is all offshore and terrible. Impossible to get things fixed when things go wrong.
    – Etc etc etc
    Of course, Amazon’s FBA warehouses are packed and more people keep signing on. If you are Amazon, given the demand, it makes complete sense to raise the fees. None of this has hurt Amazon’s program so far — there are simply no other good alternatives. Google, Ebay, NewEgg, etc have nothing like the FBA program at all.

  • RaMontu

    And PayPal is increasing fees which Ebay pushes you to use because Ebay owns Pay Pal. Google is catering to the big retailers and crushing small business too.

    Sure would be nice if Bing or Yahoo stepped in and catered to Small Business

  • http://www.facebook.com/kellie.badeau Kellie Badeau

    Ebay’s press release fails to mention that selling fees actually increased beginning May 1, 2013, the final value fee or ebay’s commission – has jumped from 3.5% of gross sale to 10% on many item’s. So, actually from the the eBay seller’s perspective- eBay just slapped us in the face – hard.

    I sold a guitar two weeks ago and paid eBay a commission fee of $94.00. I sold the same item this week and was charged over $250 in fees!

    There’s nothing like corporate greed – thanks a lot eBay.