Amazon's Power Play Backfires: Merchants and Regulators Push Back on New Fees
Portfolio Pulse from Anusuya Lahiri
Amazon.com Inc (NASDAQ:AMZN) has decided to cancel its planned 2% fee on merchants not using its shipping services due to resistance from merchants and consultants. The fee was set to take effect on October 1 and would have applied to thousands of third-party merchants. The decision comes as Amazon faces an escalating antitrust investigation. The Federal Trade Commission is likely to file an antitrust case against Amazon soon. In Q2, Amazon's seller services brought in $32.3 billion, up 18% from the previous year.
September 21, 2023 | 11:35 am
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NEUTRAL IMPACT
Amazon's decision to cancel the 2% fee on merchants not using its shipping services could potentially impact its revenue. However, this move might also alleviate some regulatory pressure.
The cancellation of the 2% fee could have a negative impact on Amazon's revenue in the short term. However, this decision might be seen positively by regulators and could potentially alleviate some of the regulatory pressure the company is facing, which could have a positive impact on the stock in the long term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100