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Is Amazon Good for Small Business?
The latest Amazon poll I received asked if I thought Amazon is good for small business. I'm curious what sellers think of this question. As someone who sells my own IP, what I have observed is...
1. Amazon either contribute to inflation, or kill margins. Amazon fees are brutal, ruthless and no small business can handle them.
2. Amazon is one of, if not the top selling channel for a small business based on modern day commerce. This is a double edged sword. If you can gain traction, or magic happens, you can make some good sales. But if the magic goes away and the Amazon gods decide you won't have sales anymore, your business is done. Small business cannot rely on a single platform that decides your fate.
I have come to the opinion that Amazon kill small business. I am coming from perhaps a unique perspective in that I'm selling my own IP, so I'm curious what others think.
27 replies
Seller_WBnGS7Ix3XiDX
I do feel Amazon can offer a small seller, with their own unique product, like me, an opportunity to be seen. So yes, it is good for small business.
Its also true, that if the Bots pick you off, or a buyer says your product is not good, or a bad actor attacks your account, your business could be over. So it could be bad for business also.
Diversifying doesn't help too much. I sell on the other platforms & have my own site, which has an affiliate link to my Amazon page. I get 2 sales a month from my site, 2 from the other platforms & 200 from Amazon. You do the math. People like to buy off Amazon.
Maybe they have a credit card & get money back, or maybe they want to return easily. Maybe they want it backed by Amazon, but either way, the sales come from Amazon.
I also, pay for some advertising, & have an Instagram account that I work hard on, to help push sales, so its a bit of teamwork. I have an affiliate account & a link on my site to my Amazon page, so its a win win. I get a little something when they buy.
I suppose if you are a small seller, & not selling something that everyone else is selling, without the funds for expensive advertising, then you do have a bit of a chance, if the Amazon Gods show your product & you can try to find some creative ways of helping sales, you could do OK.
Thanks for asking, best of luck selling!
Seller_mFUNUCCYB0cok
Amazon kills US small businesses with 2 things:
1. The outrageous and incompetent fees
2. Allowing the mass of unethical Chinese sellers to take over this platform, that don't follow any TOS rules, and price so low that no US small business can make a profit.
Those 2 things right there will kill any US small business on this platform
Seller_KrIZiAqW5Ddf0
I'll just say I'm afraid to answer this question here. Who knows what their bots have planned next?
Seller_aQELpSUQi3699
If your products are under $40.00 you can make a little money. I make more double with the stock market these days. Been doing this for 20 years.
Seller_8UYHnTIxJNqVK
Could be good for a small business but definitely not for the weak ! You have be prepared for battle when selling on this platform. All it takes is one bad apple to ruin your month. You must have thick skin. The customers on this platform (not all) are and will scam you so be prepared for that too. Other then that your good ;)
Seller_8XErEaOWBp0WH
I agree, they are hostile to small business. The fees are too high regardless and the the Account Level Reserve concept is a profit killer. I may goes months without getting paid. Only holidays save me where I record sales and actually get paid.
Seller_JUzllISOgHLP6
Amazon runs its business to be lean and efficient. Their entire culture is about getting better - better for the customer, better for shareholders, etc. This culture will always dominate how sellers make money (if they do) on the marketplace. Like any business, to make money (profit) on amazon, a sound business model is required. Every year (or day or month ), I the business needs to get better and more efficient. I don't really see it as that different than having a landlord (rent goes up ever year) or employees (wages go up, laws change). Markets are dynamic and running a business requires constant adjustment.
Seller_V5l9UBkHDQEjb
it would be if policies changing on a whim with zero notice couldn't sink you in less than 24 hours.
Seller_5Jw3XBAOWwMt0
YES, IT IS!!!
You use as a tool. You adjust to changes and fees. Just like you adjust when shipping rates or product rates go up. It's business.
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