LEKEF.com’s principled approach to eCommerce makes economic sense in addition to the sustainability issues we all need to be paying more attention to.

As this article show, marketplaces provide services only if such services boost their bottom line. Even when the giants of eCommerce claim that they are supporting small businesses by allowing them to list and sell the goods and services on their platforms, they are doing so because it will allow them to retain control over eCommerce in ways that that not only bring them more revenues, but also prevent these small businesses to find alternative paths to reach their customers.

Only the model proposed by LEKEF.com is 100 percent focused on allowing producers and creators to build local economies that are both profitable (in a sense that will allow them to earn a living) and sustainable, in that it encourages local economies to produce and sell locally, not globalize local economies in ways that would impoverish local communities.

When LEKEF.com allow producers to list their goods and services for consumers in the region, city, or town they live in, they are building the local economies in ways that complement global economies without creating the crushing inequities. Lekef.com provides this service free and without any strings attached. Join the movement.

Amazon is pocketing more than 50% of sellers’ revenue – up from 40% five years ago. Sellers are paying more because Amazon has increased fulfillment fees and made spending on advertising unavoidable.

Merchants on Amazon Marketplace are paying the company a commission fee of more than 50% of each sale. A new report by Marketplace Pulse revealed Amazon raised the total cost sellers are required to pay out toward storage fees at company warehouses, packaging and delivery, and advertising on the site.

The commission fee has gradually risen since 2016 according to the report, but sellers were not heavily impacted because of an influx of customers and a substantial increase in sales during the covid-19 pandemic. But the report said that sales plummeted when the lockdowns lifted and buyers turned to things like travel and dining out rather than online shopping. The residual effects meant that Amazon suffered its slowest sales growth since its inception.
Marketplace Pulse reported that Amazon receives a 15% transaction, or referral fee, from the sellers who also pay between 25% and 35% in Fulfillment fees and 15% toward advertising and promoting on the site.

The average fees Amazon collected last year rose to 51.8% from 35.2% in 2016 and a company spokesperson said in an emailed statement to Gizmodo that the fee sellers are charged is based on the cost and investment Amazon puts first.

“Many selling partners have built and run their businesses without advertising,” she said. “If they choose to advertise their products, they have many service providers to choose from. Sellers are not required to use our logistics or advertising services, and only use them if they provide incremental value to their business.”

Although sellers can choose if they want to participate in packing, delivery, and advertising, they don’t have control over the amount Amazon charges or the fees included. Marketplace Pulse reported that the company’s advertising revenue grew by 18.9% in Q4 last year, but was small in comparison to the year prior when advertising increased by 32.2%.

From: Amazon Is Pocketing Half of Retailers’ Sales, by Nikki Main