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Merchants Urge Amazon Fee Reductions Amid FTC Lawsuit

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Amazon.com is a platform that over 9 million merchants use as of 2023. However, it faces requests to reduce the seller’s fee amidst the antitrust lawsuit brought about by the U.S. Federal Trade Commission (FTC).

The FTC has initiated an antitrust lawsuit that seems to be having a detrimental effect on thr advertising business. The lawsuit is apparently causing harm to Big Tech’s monopoly that it enjoys in the internet sectors.

Amazon brings in substantial revenue from advertising fees, delivery charges, and many more types of “sellers’ fees.”

The FTC is being accompanied by 17 state attorneys general in the lawsuit. They want the retail giant to eliminate these fees. The merchants hold that the fee that they are asserting can force sellers to rely on Amazon. This becomes especially expensive with the costly advertising fee.

Some sellers don not seem to have much of a problem with the possibility of a reduced seller and advertising cost. However, others are fearing that without there being Amazon’s advertising services, it will be difficult to reach customers.

The FTC has also found that Amazon’s fulfillment fees has gone up by a whopping 30% between 2020 and 2022. Amazon seems to be arguing that the FTC’s case could lead to there being fewer product choices, higher prices, slower deliveries, and even a serious cut down of small businesses. Many are of the opinion that advertising on Amazon is expensive but essential having an influence on the platform.

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