Can Amazon's Fastest-Growing Segment Keep Up the Pace?
Amazon's (NASDAQ: AMZN) fastest-growing segment in the fourth quarter wasn't its cloud computing or advertising businesses. It was third-party seller services.
Revenue from Amazon's third-party marketplace services, which include listing referral, storage, and fulfillment fees, grew 24% year over year on an currency-neutral basis. Amazon has consistently increased the prices it charges merchants using its platform almost every year, and just implemented new pricing for sellers in January.
But sellers are now paying over 50% of their revenue to Amazon in the form of fees and paid advertising, according to Marketplace Pulse. That may put a damper on Amazon's ability to continue raising the prices it charges merchants to sell on its website.
Source Fool.com
