Amazon, the world's largest e-commerce company, continues to hike its fees — it now pockets more than half of retailers' sales.

A new report by e-commerce researcher Marketplace Pulse found that sellers are paying more because the e-commerce giant has increased fulfillment fees and made spending on advertising unavoidable.

The report shows that commission fees have steadily increased since 2016, but sellers were not negatively impacted because of the boom in online sales during the pandemic. However, when the lockdowns were lifted, sales plummeted. As a result, Amazon suffered its slowest sales growth since its inception.

According to the report, Amazon receives a 15% transaction fee from sellers, along with fulfillment fees of 25% to 35% and advertising and promotion fees of 15%. 

A spokesperson for the company told 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… Sellers are not required to use our logistics or advertising services…

While sellers can choose whether to participate in packing, delivery, and advertising, they cannot control the amount Amazon charges or the fees included. The total fees vary depending on the category, product price, size, weight, and the seller’s business model.

Despite struggling to make money, the report also showed that merchants are reluctant to increase their prices. Businesses are also shipping their own packages instead of using the company's warehouse and are spending less on advertising.

The spokesperson added that, on average, Amazon’s fulfillment center is still 30% cheaper than the standard shipping services offered by third-party competitors and 70% less than alternative two-day shipping options.

Images: Marketplace Pulse