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Why are Prices Higher on Amazon?
As one of the largest online retailers in the world, Amazon has undoubtedly revolutionised the way we shop. With its vast selection of products and convenient delivery options, it has become the go-to destination for many shoppers.
However, some keen-eyed shoppers have noticed that prices on Amazon can sometimes be higher than prices at other retailers sites.
This discrepancy can often be attributed to the charges and fees that Amazon sets for its retailers using the Amazon Platform.
Amazon charges fees for its services, including listing fees, referral fees, and fulfillment fees. These fees vary depending on the product category and the type of service required.
For example, a retailer might pay a referral fee of 15.3% on the sale of a sports products and an additional fulfillment fee for shipping and handling. These fees can add up quickly, especially for small businesses, and can significantly affect the final price that a consumer has to pay.
In addition to these fees, Amazon also offers various programs that can impact prices. For example, the Amazon Prime program offers priority shipping on eligible items, but retailers may have to pay extra fees to participate in the program.
While these charges and fees might seem like a burden on sellers, they do provide a valuable service. Amazon offers a vast platform for sellers to reach a large audience and access features like Prime and the Buy Box algorithm that can significantly boost sales.
Ultimately though, it is the end-customer that will have to bear the costs.
A retailer has to purchase the goods and then all of the fees mentioned come out of potential profits. In order to generate a profit, retailers may have to increase the retail prices on Amazon to allow for the feels levied by Amazon.
Therefore, it's essential to shop around and compare prices to ensure that you're getting the best deal.
In some cases, although Amazon is quick and convenient, using a retailers own website may offer better value. Plus of course you may be supporting a small business rather than Multi-National Giant.
For us, here at Martin Berrill Sports we offer a Price Match Guarantee that says we will always try our very best to match or better a price shown on Amazon.