How do you make it work when Amazon monopolozing EVERYTHING!
Just wanted to get your guys opinions as experienced sellers on the growing trend that Amazon using there own platform to monopolise everything! It seems to me unless you start your own brand, gone are the days when you could sell brand products as often they are sold by amazon, despatch by amazon etc. I know they have a dedicated team, snapping up top selling products and selling it themselves “Sold by amazon” Its clear ,normal postal fees do not apply to them, when you compare with the FBA fees us sellers have to pay…its crazy. Further to this they are slowly taking over niches with Amazon Basics etc. I mean, good on them, but surely, us the sellers who made them, this isnt really fare is it?
34 replies
Seller_DTufFoxJuMU0M
Dunno about you - but the FBA fees that I pay are quite often cheaper than I would pay to Royal Mail for postage…
But yes I have a product they are selling - I sell it for £1.90 and can’t afford to sell it any cheaper and make a profit, but they have recently started selling it for £1.43 with next day delivery.
Can’t compete, am not trying to compete, I’m not getting into a price war, I will leave the product active, if it sells it sells, if it doesn’t I won’t restock it., when i get sick looking at it I’ll put it on sale and try to get rid of it,
Seller_lljyzgTxr5fgI
All is fair in love and war…and business. Amazon is a unique platform in that it hosts third party sellers, just like Ebay, Etsy, Vinted et al but also sells the same products as some of those sellers, in direct competition with them. We all know this when we sign up.
Seller_esvgLzKXw2YAl
Sorry, but no.
You most certainly don’t need your own brand to succeed when selling on Amazon.
I have been doing exactly that for the last 6/7 years or so.
It takes time, patience and effort.
And frankly it is quite possible to compete directly with Amazon. It’s just a case of choosing your battles carefully.
Even when Amazon dominate the buy box, it does still rotate between other sellers.
So though you may not sell as many items as Amazon does, you can quite happily continue to sell them.
Seller_BS5lg2keRs2QO
I suppose for a site like Amazon which relies on having a very broad range or products, if they stopped selling anything that had minimal profits for them then they run the risk of buyers going elsewhere.
Someone who wants to buy a birthday card for example might also want to buy a gift, wrapping paper, perhaps some batteries etc.
Seller_jg6BLEkOGtxvn
All valid points from everyone and I think it’s an interesting topic to cover from other sellers experience. I think in most part it’s the FBA fees that are crippling. For me personally the profit margin there for many products…and selling as seller fulfilled…Great…but when u have the same product sold by amazon taking the buy box cause it prime…yet I go to send fba…the fees ridiculous…straight out …I know I can’t possibly get the product cheaper to compensate…and I know too that I can’t possibly get lower postage too…if I want that prime badge I could go seller fulfilled prime…but then that’s eliminated when you have to Insure signed for delivery and fast postal option…and abide by amazon’s requirements…which by the way…are over the top in terms of becoming seller fulfilled prime. An item 700 grams heavier warrants a 6.50 additional in fba fees? Ridiculous
Seller_oGFKRixtdkjxL
Well yes, that’s part of their business model - MPS take the inital risk, Amazon’s analytics tell them what’s selling and they monetise that data - it’s not hidden.
Sometimes they seem to sell as a loss leader, they make a very small percentage on their own sales - we’re the cash cow for them (in terms of Amazon retail).
You simply have to wait until they are OOS/no longer sell the item unfortunately - sometimes they hog the BB; because this is a weighted market where they hold all the cards. The situation you’re describing has happened to all of us.
Seller_xUKHc5xSYJmI4
These are my observations:-
It appears to me they have a team of people sourcing fast moving lines having collected the data. Competing with Amazon is not easy when they have the buy it box despite being more expensive than other sellers selling the same product. Sellers are competing on price and dropping their margins to compete, some even sell below cost price to get a sale. The reason we know the above is because we sourced small quantities from the manufacturers.
Most of the products you search for online fulfilled by Amazon. To be honest I am actually surprised some products sold by Amazon are less than £3. When the picking, packing and dispatch costs are the same when using FBA.
It won’t be long before everything is fulfilled Amazon. Thats my opinion anyway.
Seller_58y2FhNkywdyp
list everything as ‘like new’ and put ‘new and factory sealed’ in the seller comments.
then list at the same price as amazon (or a few pence cheaper) with free postage - non prime members have to pay amazon extra for shipping.
or if the margins there a couple of pound cheaper than amazon as buyers often prefer a cheaper price than a quick delivery.
simples…
Seller_WseB32EBb785w
It’s definitely fare, quite literally, but maybe not fair, or unfair rather…
Seller_Fh8HMR4i8P2pm
why do amazon keep on knocking down prices by getting everyone to go down by a penny and then continue going down why cant everyone just keep the same price and let the bb be shared by everyone
