Date: 2013 January 10 16:58
Posted by Joe
We've just heard that popular on-line retailer Play.com will stop "first party retail sales" by the end of March 2013. They intend to focus on it's Marketplace business. Play.com were sold to the Rakuten Group in 2011 for £25m. With the price reflecting the close of the tax loophole that allowed them to sell their DVDs from the Channel Islands, without paying VAT.
This basically means they will not directly distribute goods, but instead act as a market place to allow third party companies to sell stuff.
Details as follows:
As some of you may have seen in the news today and yesterday, following a strategic review of the Play.com business, they are intending to focus on its very successful Marketplace business and phase out its first party retail sales by the end of March 2013. The removal of Low Value Consignment Relief (LVCR) implemented in April 2012 has been the determining factor in this decision.