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Amazon’s Important Relationship with Third-Party Sellers

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Amazon to lower the commission it charges third-party sellers

Third-party sellers are small-scale retailers who depend on big eCommerce players such as Amazon (AMZN) and eBay (EBAY) to sell their products on their platforms. These sellers are a great source of profit for Amazon and eBay, which earn a commission from sales without investing in product costs.

To maintain a good relationship with its sellers, Amazon is lowering the fees it charges them, according to a report from Business Insider. The report mentions that this reduction will start on February 19. It says, “This year, we are lowering our referral and minimum referral fees across categories to help you increase your selection of products.”

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The importance of third-party sellers is evident in the fact that in October, eBay accused Amazon of poaching sellers from its platform. Sellers also don’t like to put all their eggs in one basket. According to a report from Feedvisor, “52% of surveyed Amazon merchants are also selling on eBay in 2018.” Only 25% of Amazon’s merchants are also selling on Walmart (WMT) and its Jet platforms. However, a year ago, these numbers were 65% for eBay and 17% for Walmart.

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