Play.com shutting down - becoming nothing but a marketplace...

[MD]

Online retailer Play.com is to shut down its retail business becoming a marketplace only from March 2013.

Bad news for media sales competition - Amazon will stop price matching, HMV really can't be far behind if play.com are jumping ship.

The Hut group can't be too good either.

http://www.bbc.co.uk/news/world-europe-jersey-20953357

[TheAnimus]

Well Play.Com took a clobbering because they relied on selling items cheaply without VAT.

Whilst it will be bad potentially, as there is less pressure on amazon, it's not the end of days.

[Kirano]

Online retailer Play.com is to shut down its retail business becoming a marketplace only from March 2013.[/url]

Forgive me for being dim but... what does that actually mean - 'becoming a marketplace only?' Surely it's a marketplace now? Or does that mean that it's going to revolve purely around 3rd party sellers like ebay?

[scaryjim]

... does that mean that it's going to revolve purely around 3rd party sellers like ebay?

This. Indepedent retailers will sell through play.com - play.com will not sell any products themselves. It has to be said, if you base your entire business model around exploiting a tax relief, at some point someone's going to shut off that relief.

Of course, this sucks biggest for the good people of Jersey, who will now have to find ways of making money that don't revolve around being a tax haven. If the figure of ~ 550 job losses (400 elsewhere + 147 at play) due to LCVR is correct, that's 0.5% of the island's entire population - and presumably a much higher percentage of the economically active population. That's going to sting for a bit...

[Kumagoro]

I had assumed this was likely from the moment rakuten took them over, because all they are is a market place.

[Jake_UK]

Let's hope Amazon start paying Corporation Tax to even things up a bit

[Unique]

play has really went downhill over the years. 10 years ago i literally spent hundreds of quid each month on dvds and i usually got delivery the next day in most cases and they were usually about the cheapest, or they were £1 more but a trusted source of quick delivery. then delivery times slipped and other companies popped up and beat them at prices. i rarely buy anything now apart from sale deals. since amazon had the free shipping for everything they sold direct, that's usually the first place i looked

i don't know how long they will last as they will just be a poor relation to ebay and amazon unless fees are low and it's easy for people to sell stuff, but against two long established sites they will find it tough

[TheAnimus]

Let's hope Amazon start paying Corporation Tax to even things up a bit

Oh but it is even.....

Play.com no doubt don't have a lot of income tax to pay.

[Jake_UK]

My point was that Amazon do (or more accurately should)... Play's VAT tax loophole was closed down, HM Gov should do the same with Amazon's CT.

[TheAnimus]

My point is that it is even. Completely even.

Amazon have been paying their VAT.

[kalniel]

It has to be said, if you base your entire business model around exploiting a tax relief, at some point someone's going to shut off that relief.

Exploiting sounds a little harsh, but I agree with the point. Mind you the original owners are sitting happy - sold it on after the relief was closed but while trading still looked quite good.

[TheAnimus]

We can extend it further, if your entire business is based on a single arbitrage, you should be careful to make sure that the gap will not suddenly disappear.

If that arbitrage is due to government interference, well, you'd better get lobbying!

[directhex]

My point is that it is even. Completely even.

Amazon have been paying their VAT.

Amazon have been shipping goods from the channel islands to avoid VAT too.

Also Tesco Direct.

[OilSheikh]

After Ratuken bought play, their prices weren't competitive like before.

[walibe]

After Ratuken bought play, their prices weren't competitive like before.

I didn't use them as much after the region 1 DVDs split off and became expensive. Will be a shame to see them go but music and DVDs become a secondary thing to everything else and it just hasn't worked.

[TheAnimus]

Amazon have been shipping goods from the channel islands to avoid VAT too.

Also Tesco Direct.

Only some of the items, where as play did all. Also they stoped after the rules were changed. Amazon are not looking to stop shifting boxes. Play are.