Amazon has announced an increase in marketplace fees for third-party sellers in France. The company has increased its marketplace fees by 3%. The retail giant told that its arm has been forced by the 3% digital tax recently approved by the French Parliament. This enforcement by the French Parliament targets any corporation that generates $832 million yearly including 25 million euros generated within France.
Amazon holds a 49.1% share of the e-commerce market in the US. And in the UK almost 90% of all shoppers use online retailers. In France, Amazon is growing at twice the rate and overall online retail market in the country has reached up to 19% of the market share. Many people in France are depending on Amazon for shopping and this is giving a chance to medium sized retailers to operate as sellers for Amazon marketplace.
The increase in Amazon’s presence in France is also increasing the Amazon Policy Violation by the sellers. The sellers can violate the policies if they think this 3% rise in the fees is unacceptable. They can also leave the Amazon for selling their goods elsewhere. If they do so they can lose their business. In such a case, sellers are left with their blocked and suspended accounts that are hard to recover unless they take the help of e-commerce experts like Younglanes Appeal Services. These experts then assist the Amazon sellers with their account problems.
A spokesperson of Amazon said, “Because we operate in the highly competitive and low-margin retail industry and invest heavily in building tools and services for Selling Partners and customers, we cannot absorb an additional consumption tax that is based on revenues instead of profits.”