Amazon raises commissions! Sellers are being cheated again

France, a mainstay among EU member states, took the lead in implementing this policy as an example.

In March, the French government announced a 3% digital tax on these Internet giants. The French Finance Minister said that this tax could bring 500 million euros to the French government each year.

In order to protect its own domestic companies, the United States even launched a trade war with the European Union (Trump really likes trade wars).

When I was analyzing this matter, I guessed that if France insisted on imposing digital taxes on Internet giants, I couldn’t say about other companies, but Amazon would definitely find a way to increase the tax on sellers.

Unexpectedly, Amazon did not let me down. It just sent me an email notification and simply passed the tax increase to the sellers.

Amazon also gave an example in the notice. If the original category commission ratio was 15% , it would become 15.45% after the increase in October (15%*3%+15%).

The tax originally levied on large US Internet companies was passed on to unrelated third-party sellers. Google and Facebook also wanted to take action after seeing this. It was difficult for these companies to pass the tax on to others, but Amazon solved the problem so easily with just one email.

Is there room for easing this fee increase? Will other European sites follow suit with digital taxes?

Do you remember the news at the end of last year that Amazon had a net profit of over 10 billion but did not pay a penny in tax?

Among them, various tax avoidance and refund operations have become textbook, which shows the United States' various favoritism towards domestic giant companies. Therefore, when Europe announced the imposition of digital taxes on American companies such as Amazon, it was strongly opposed by the US government.

Fearing sanctions from the United States, many EU members do not support the digital tax, such as Ireland, Sweden and Denmark. Germany, another pillar of the EU, has also changed its attitude towards the tax from initial support to silence.

Therefore, given the different opinions among EU countries, it is unlikely to be implemented across Europe for the time being.

Digital tax can be regarded as the tax generated by Amazon's sales of digital services, so it does not include FBA's warehousing and logistics fees, etc.

But logically speaking, Amazon should have a lot of digital services like commissions, such as platform rental, flash sale registration fees, etc. Did the brother-in-law find his conscience and only raise the sellers' commissions? Or did he first increase the fee and then slowly boil the frog in warm water?

Therefore, if this increase has already encroached upon the profit margin and a price adjustment is required, it is recommended that the pricing strategy be more radical. After all, we do not know if there will be other new costs added later. Although my brother-in-law rarely changes his mind at the last minute, his shamelessness is comparable to that of Trump.

The European site has indeed had many favorable policies this year, especially the new terms after August 16 that restrict Amazon's right to close stores. Therefore, many sellers are eager to try this second largest site of Amazon.

I would like to remind everyone that you must calculate all kinds of costs. In Europe, not only is there VAT, but even advertising fees are taxed. In addition, the current unclear digital tax means that only by setting the profit margin high enough can you gain a foothold in Europe.

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