From April 21st online retail giant Amazon will introduce a new cycling accessories category covering the UK and European marketplaces.
An email sent to sellers this week illustrated a number of changes, most notably alterations to referral fees on items sold within this category.
The statement sent to retail partners explained that a reduction in the referral fee would become applicable, in theory helping retailers improve their margins on sales made through the portal. The current referral fee sits at 15.3% of the total sales price, including shipping and other charges. This will now be cut to 8.16% of the total basket and delivery cost.
Amazon used the following example to illustrate the change: “The referral fee for a £25 bike bag before the change is £3.83. With the new fee, it is reduced to £2.04, giving you a saving of £1.79.”
In certain European territories Amazon is subject to a digital services tax which will be added on top of the fees. In the UK that equates to 2%, while Italy, France and Spain levy a 3% charge.
In the UK there are further rumblings of a mandatory delivery charge for online sales made with larger e-tailers. This idea was pitched last year in reaction to the growth of goods vehicles on the road.
The following product types are included in the Cycling Accessories category:
bags and panniers
Bike locks (cable, chain, combination, folding, mount)
Bike racks and stands
Lighting parts and accessories