Wednesday, May 2, 2012

Amazon Raises Referral Fees For Some Third Party Retailers

Seattle-based Amazon has quietly told third party retailers selling musical instruments on the site that it is increasing its referral fees it charges, from 12 percent to 15 percent, in a move that has raised the hackles of numerous third party vendors on the site. In a letter to retailers, Amazon said it had made "significant investments" to expand its marketplace, justifying the referral fee increase. An editorial from a music industry trade magazine, Music Trades, said that Amazon is using the move to steer direct buying and selling decisions to its own fulfillment centers, and that retailers have created a "tough new competitor" in the musical instruments marketplace by selling through Amazon. Amazon has faced some criticism in the past from third party sellers, for taking hot selling items and categories on its third party seller sites, and directing its buying efforts to instead stock those hot items itself.