Similar to the ad platforms favoring ads vs transaction take-rate models, Amazon has increased the amount of ads on their platform. It seems to make sense now, given they search originates a lot from amazon directly and they can take more % from the top listed products via auction model.
However, their fees is already so high [1] (around 50% of sellers revenue), I can't see it growing much more before saturating.
Similar to the ad platforms favoring ads vs transaction take-rate models, Amazon has increased the amount of ads on their platform. It seems to make sense now, given they search originates a lot from amazon directly and they can take more % from the top listed products via auction model.
However, their fees is already so high [1] (around 50% of sellers revenue), I can't see it growing much more before saturating.
1 - https://www.marketplacepulse.com/articles/amazon-takes-a-50-cut-of-sellers-revenue#:~:text=Amazon%20is%20pocketing%20more%20than,made%20spending%20on%20advertising%20unavoidable