Categories
Posts

Play.com to become a customer-only online marketplace

Polygon:

The company blames the closure of the Jersey tax loophole this year for its struggles. Play.com was purchased by Japanese internet company Rakuten for 25 million British pounds in September 2011, and two months later the Jersey government announced it would close the tax loophole allowing retailers to skip consumption taxes on items retailing for 15 British pounds or less.

The Jersey tax-dodge was a popular loophole that companies such as Tesco to sell cut-price DVDs. It’s a shame to see Play remove it’s own stock and drop down to just a marketplace but it’ll be interesting to see how popular it’s streamlined business model will be in comparison to Amazon’s marketplace or eBay.