Amazon Competing with Its Own Sellers – How to Stay Profitable?

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Seller_JvtZyUO6ZDxOG

Amazon Competing with Its Own Sellers – How to Stay Profitable?

Hello all,

Hope you are doing well!

Has anyone noticed that Amazon seems to be competing with its own sellers on nearly every listing? They sell products at such low prices that it's impossible to match them.

For example, I sell Monopoly Deal cards. I source them directly from the main distributor in the UK (NDA) at £4.13 per unit. However, Amazon is selling the same product for £4.99. If I were to match Amazon's price, I would incur a loss of £1.60 per unit—and that’s not even including prep and UPS charges.

Does anyone have any advice or suggestions on how to navigate this situation?

Thank you in advance!

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Seller_ZJhFeE3tNKzfh

Unfortunately, amazon will have a far higher purchasing power than you will so are likely not paying £4.13 a unit (and of course they don't have their own fees to consider).

If amazon are selling on a listing - you hope they sell out and then you get the sales - or you find other listings.

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Seller_d8YGbIjNqwFxn

I compete on a number of listings with Amazon.

They do seem to vary their prices from time to time so prices do go up as well as down. They do also seem to intentionally match sellers who have crazy low prices.

Being FBM gives you a better chance to compete as not everyone has Amazon prime and you end up being the cheaper offer as non prime customers have to pay postage on low price items.

Amazon do also seem extremely bad at keep items in stock. They tell us it is a good thing to and it impacts your IPI if you don't keep FBA items in stock. However they often run out on a lot of lines and it is then when you get the sales.

There are also many lines where Amazon do not have any listings. It is worth seeking those out as they can give you more consistent sales.

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