Why Marketplace Fees Are Squeezing Seller Profits in 2026
Selling on Amazon and eBay made sense when fees were reasonable. Today, the economics have shifted dramatically against sellers who rely solely on marketplaces.
Amazon seller fees now total 30 – 45% of revenue when you combine referral fees (8 – 15% depending on category), Fulfilment by Amazon costs, storage fees, and the advertising spend now required to maintain visibility. Amazon’s advertising revenue hit £14 billion in Q3 2025 alone – a 24% year-on-year increase that reflects the “pay to play” reality facing sellers.
eBay fees have also increased, with Final Value Fees sitting at 13.25% plus 25p per order for most categories. When you add promoted listing fees (2 – 10% additional), international fees, and store subscriptions, eBay sellers typically pay 15 – 20% of their total sale price. eBay increased fees by up to 0.35% in February 2025.
The result? Average Amazon seller profit margins have fallen from a historical 15 – 25% to just 10 – 20% for successful sellers. Many sellers are now struggling to make their businesses viable.
Meanwhile, the cost of acquiring new customers across ecommerce has risen by 40% between 2023 and 2025. Building a direct relationship with existing customers has never been more valuable – and that starts with owning their email addresses.
The Email List Advantage: Why Direct Customer Relationships Matter
Here’s the fundamental problem with marketplace selling: you don’t own the customer relationship. Amazon and eBay keep customer email addresses to themselves. Every sale starts from zero. You cannot contact previous buyers, build loyalty, or encourage repeat purchases through direct communication.
Email marketing delivers exceptional returns precisely because it lets you communicate directly with people who already know and trust your brand. According to Litmus research, email generates an average return of £36 for every £1 spent – an ROI of 3,600%. For ecommerce specifically, Omnisend reports returns as high as £72 per £1 spent.
The retention economics are equally compelling:
- Acquiring a new customer costs 5 – 25 times more than retaining an existing one
- A 5% increase in customer retention boosts profits by 25 – 95%
- Repeat customers spend 67% more on average than new customers
- Email subscribers who purchase spend 138% more than those who don’t receive emails
Managing these email relationships doesn’t require complex marketing automation software. For sellers transitioning from marketplaces, a straightforward email list hosting service like Simplelists provides everything needed to collect, organise, and communicate with customers – without technical complexity or excessive costs.
Platform-Compliant Methods for Building Your Customer Email List
Both Amazon and eBay have policies restricting how sellers can contact customers. Understanding what’s permitted – and what isn’t – is essential for building your email list without risking account suspension.
What Amazon Permits
Amazon’s policies are notoriously vague, but certain approaches are clearly acceptable:
- QR codes on product packaging linking to warranty registration pages – the single most effective bridge between marketplace sales and direct relationships
- Website URLs on standard packaging – Amazon themselves note that “99% of products have a website address on the packaging”
- Thank-you cards with product care instructions that include your brand website
- Social media handles as part of branded materials
What Amazon prohibits: Discount codes redeemable only on your website, explicit calls to purchase elsewhere, and incentives for reviews.
What eBay Permits
eBay’s policies are stricter. Sellers cannot share contact information before completing a transaction, and listings cannot contain external links. However, once a sale is complete, you can include branded materials in your packaging that direct customers to your website for registration, support, or future purchases.
The most effective compliant strategy across both platforms is warranty or product registration via QR code. When customers scan the code and voluntarily provide their email address in exchange for extended warranty coverage or exclusive benefits, they’re giving genuine consent to future communication. This approach has proven remarkably effective – one brand using this method generated over 64,000 identified customers in a single week.
A Practical Framework for Transitioning Customers to Direct Sales
Moving customers from marketplaces to your own website isn’t an overnight process. This phased approach helps sellers build sustainable direct sales channels whilst maintaining marketplace income.
Phase 1: Collect Email Addresses (Months 1 – 3)
Start by implementing compliant email collection methods. Add QR codes to your packaging linking to a simple registration page. Offer genuine value in exchange for email addresses – warranty registration, product guides, exclusive tips, or early access to new products.
At this stage, you need a reliable way to store and organise the email addresses you’re collecting. Simplelists email list hosting makes this straightforward – import contacts easily, segment your list by product or purchase date, and keep everything organised without needing technical expertise.
Phase 2: Build the Relationship (Months 3 – 6)
Begin regular communication with your list. Send helpful content related to your products – usage tips, care instructions, complementary product suggestions. The goal is establishing trust and maintaining awareness, not aggressive selling.
Simplelists makes sending group emails simple: compose your message, send it to your list address, and we forward it automatically to all subscribers. No complex campaign builders or confusing interfaces.
Phase 3: Offer Exclusive Direct Incentives (Months 6+)
Once you’ve built trust through helpful communication, introduce exclusive offers available only on your website. This might include:
- Website-exclusive products not available on marketplaces
- Early access to new product launches
- Loyalty rewards for direct purchases
- Bundle deals only available through your store
Remember, without marketplace fees consuming 30 – 45% of each sale, you can offer meaningful discounts on your website whilst still improving your profit margins.
GDPR Compliance: Collecting Emails the Right Way
For UK and EU sellers, GDPR compliance isn’t optional. Email addresses are personal data, requiring proper consent before you can send marketing communications.
The good news: GDPR actually supports legitimate email marketing when done correctly. You need:
- Active opt-in consent – pre-ticked boxes don’t count
- Clear explanation of what subscribers will receive
- Easy unsubscribe mechanism in every email
- Records of consent showing when and how people subscribed
There’s also a useful exception: the “soft opt-in” rule allows marketing to existing customers without fresh consent, provided the email was obtained during a sale, marketing concerns similar products, and customers can easily opt out. This is particularly relevant for marketplace sellers – once a customer voluntarily provides their email through your registration page, you can communicate about similar products.
Simplelists is fully GDPR compliant, with UK-based data centres (and optionally US) and proper data protection measures built in. You can learn more about email list marketing best practices in our comprehensive guide.
The Financial Case for Owning Your Customer Data
Beyond immediate cost savings, owning customer email addresses has significant long-term value.
Research shows that Amazon-dependent brands sell for 40% less when acquired. Businesses with 90%+ marketplace concentration achieve acquisition multiples of just 3.0 – 3.5× EBITDA, whilst balanced omnichannel businesses command 5.5 – 6.5× EBITDA.
The difference? First-party customer data. When you own email addresses and purchase history, you have a direct relationship with your customers that doesn’t disappear if marketplace rules change or accounts get suspended.
With third-party cookies increasingly blocked (Safari and Firefox block them by default, and 70% of Chrome users deny them when asked), first-party data has become even more valuable. Email addresses are now the most reliable, consent-based, platform-independent way to maintain customer relationships.
This is why building an email list for your business should be a strategic priority, not an afterthought.
Getting Started: What You Need to Begin
The barrier to starting is lower than most sellers expect. You don’t need expensive marketing automation platforms or technical expertise. Here’s what you actually need:
- A simple email list hosting service to store and manage your growing list of contacts. Simplelists offers plans starting from $11/month with a free trial to get started.
- A basic landing page for warranty registration or exclusive content – this can be as simple as a form on your existing website.
- QR codes or package inserts directing customers to your registration page. Free QR code generators are widely available online.
- A commitment to regular, helpful communication that provides genuine value to subscribers.
The technology should be the easy part. With Simplelists, there’s no software to download – everything is web-based. You can import existing contacts from spreadsheets, set up web subscription forms, and send your first group email within minutes. We handle the technical details so you can focus on building customer relationships.
Frequently Asked Questions
Is it against Amazon’s rules to collect customer email addresses?
Not if done correctly. Amazon prohibits asking customers to buy elsewhere, but allows brand information on packaging and voluntary registration pages. QR codes linking to warranty registration are widely used and compliant. The key is providing genuine value – not explicitly marketing your website.
How much can I really save by selling direct?
On a £100 product, Amazon FBA sellers typically pay £30 – 45 in combined fees. Selling direct through your own website with standard payment processing costs around £3 – 4. That’s a potential saving of £26 – 41 per transaction – savings you can partially pass to customers as incentives whilst still improving margins.
Do I need complex marketing automation software?
No. Complex automation makes sense for large businesses with dedicated marketing teams, but most sellers starting their direct sales journey need simple, reliable email list management. Simplelists provides exactly this – easy list organisation, straightforward group emailing, and no technical complexity.
What about GDPR? Can I email customers in the UK and EU?
Yes, with proper consent. When customers voluntarily register and explicitly agree to receive communications, you have valid GDPR consent. The “soft opt-in” exception also allows emailing existing customers about similar products. Simplelists is fully GDPR compliant with UK-based data hosting.
How long before I see results from building an email list?
Email list building is a gradual process. Most sellers see meaningful list growth within 3 – 6 months and measurable direct sales increases by month 6 – 12. The key is consistency – every marketplace sale becomes an opportunity to build a direct customer relationship that pays dividends for years.
Take the First Step Today
Every sale you make on Amazon or eBay is an opportunity to build a direct customer relationship. The question isn’t whether marketplace fees will continue rising – they will. The question is whether you’ll have an alternative channel when that happens.
Building an email list doesn’t mean abandoning marketplaces overnight. It means creating options, reducing dependency, and keeping more of the money you earn. Start small, stay compliant, and focus on providing genuine value to your customers.
Start your free trial with Simplelists
References
- Litmus (2025). The ROI of Email Marketing. State of Email Report.
- Omnisend (2025). Email Marketing Statistics 2026. Omnisend Research.
- Hostinger (2025). Top Email Marketing Statistics to Watch in 2025.
- Amazon Seller Central (2026). 2026 Updates to US Referral and Fulfilment by Amazon Fees.
- eBay (2025). eBay Selling Fees. eBay Help Centre.
- Webretailer (2025). Amazon Package Inserts: What’s Allowed and How to Use Them.