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August 23, 2018, 07:30:51 PM |
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another problem Apollox is solving is
Broken cost model for sellers
Additionally, there are the hidden costs of advertising and marketing that are centrally, monopolistically, controlled and often higher than the market price. Middleman fees for other services such as transport, dispute settlements, storage and overseas logistics on the larger e-commerce platforms are in a lot of cases excessively expensive.
Because of this, both buyers and sellers lose money, yet the platform profits more. This misalignment of interests stems from the huge power of organizations like Alibaba and Amazon and the presence of middleman and intermediaries that all need to profit. Veteran Amazon sellers indicate that their profitability has vastly decreased over the last years. There is a clear misalignment between the interests of the e-commerce platforms and the sellers on that platform, in which an increase of the platform’s profitability decreases that of its sellers.
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