Marketplace Only From March
Play.com has announced that they'll have to shut down their retail business now that the Jersey tax loophole has been closed.
The company originally set up in the Channel Islands to take advantage of a generous VAT loophole that saw them paying almost nothing in the way of tax on items under £15. Since April 2012, however, the loophole has been closed, and the company has been suffering financially ever since. Things have gotten so bad (despite a buyout by the Rakuten group) that retail selling will cease as of March 2013.
Play.com will still operate as a middle man marketplace, which is apparently still a profitable business.
"Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct retail part of our business," said a Play.com spokesperson.
Well, it looks like the Amazon vs Play.com price wars will soon be a thing of the past. Will there be a stock clearance sale?