New Research: Amazon’s Monopoly Tollbooth In 2023
Amazon’s dominance of online retail means that businesses that make or sell products have little choice but to rely on its site to reach customers. Amazon exploits its power as a gatekeeper to pocket a growing cut of the revenue earned by these businesses. It does this by imposing ever-larger fees on them.
In effect, Amazon controls a monopoly tollbooth that sits between businesses and the online market. Over the last few years, it has sharply raised the price of passing through it. In the first half of 2023, using a variety of fees, Amazon took 45 percent of sellers’ revenue in the U.S. That’s up from 35 percent in 2020, and 19 percent in 2014. These exorbitant fees make it nearly impossible for small businesses and other sellers to sustain a viable business online. Most fail.