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Amazon raises seller fees in apparel and accessories | Retail Dive

The fee hikes also demonstrate the conundrum for Amazon’s Marketplace sellers, who gravitate to the e-commerce giant for its extensive research, robust search and sticky Prime customers, but who also face competition from Amazon itself and the whims of the company’s seller policies.

Those whims have led some sellers to turn elsewhere, notably Walmart, which has demonstrated renewed effort when it comes to its own marketplace. Walmart’s e-commerce marketplace launched in 2009 and is gaining fast, in part because many merchants want to diversify their outlets beyond Amazon, according to eMarketer.

In addition to fee increases in fulfillment and sales, brands and sellers often suffer from Amazon’s tendency to capitalize on their success. For example, Amazon Essentials accounted for 4% of its daily best sellers, up from zero a year ago. Its top-performing item was the “Men’s Cotton Pique Polo Shirt,” markedly similar to Dockers’ “Men’s Short Sleeve Solid Poly Pique Polo Shirt” at half the price, according to recent research from digital insights firm L2. “With Levi’s/Dockers owning the second highest share of best sellers in the men’s clothing category, this suggests Amazon’s private label brands pose the greatest threat to the very brands that are top of the category today,” according to L2.

On Prime Day last year, for the first time, Amazon’s private label brands Mae (lingerie), Goodthreads (men’s dress shirts), Lark & Ro (women’s dresses) and Buttoned Down (men’s dress shirts) landed in Amazon’s best seller rankings in their categories, driven by full-screen visibility on Prime Day’s fashion landing pages, L2 found. In fact, and alarmingly for brands, Amazon’s Fashion landing page on Prime Day this year exclusively featured private label products, the research found. And those private labels maintained much of their momentum after Prime Day.

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Amazon raises seller fees in apparel and accessories | Retail Dive.