Hacker News new | ask | show | jobs
by AbrahamParangi 1375 days ago
Does it seem relevant that other marketplaces with lower marketshare can't reduce their take-rate to lower consumer costs and gain marketshare because sellers would have to raise their prices a corresponding amount if they want to stay on Amazon?
1 comments

How would another marketplace lowering their referral fee cause sellers to raise their prices? They can either keep the extra margin at the marketplace with the lower fees, or they can reduce their prices at Amazon.