Critics say the fees and pricing policies of Amazon, the world’s largest e-commerce company, are pushing up product prices at other online shopping malls as well. The analysis says sellers may have little choice but to raise prices at other outlets to absorb Amazon’s high fees.

Japanese media outlet Gigazine reported on Oct. 15 that data journalist Amanda Shendruk said, "Amazon’s fee system and pricing policy could limit price competition across the broader online distribution market."

Amazon charges a base fee of 15 percent of the sale price across multiple product categories. Additional costs arise if sellers use shipping, storage, returns and advertising services.

Shendruk estimated that fees could reach $13.76 when selling a $30 clothing item and using all related services. That would mean about 46 percent of the sale amount is lost to costs.

Fulfillment by Amazon (FBA) was singled out as central. Sellers can sell products without FBA, but using it makes it more advantageous to be selected as a recommended seller that customers can buy from immediately without choosing a separate seller. The U.S. Federal Trade Commission (FTC) argued that this structure is making FBA an effectively mandatory service.

The pricing policy is also controversial. Amazon states that if its selling price is significantly higher than the recent price at other shopping malls, it can strip a seller of recommended-seller status or restrict selling privileges. That creates an incentive for sellers to raise prices at other shopping malls as well if they want to raise prices to reflect Amazon’s fees.

Shendruk criticised that consumers effectively bear Amazon’s prices even if they do not buy from Amazon.

The California attorney general sought a court injunction over allegations that Amazon is restricting price competition. Japan’s Fair Trade Commission also investigated Amazon Japan over allegations it pressured sellers to cut prices and use FBA.

Amazon says its pricing policy is meant to protect consumer trust. Whether the policy drives price increases across the market as a whole is the subject of legal disputes.