Selling on Amazon has Officially Become a Loss
Not that anyone at Amazon will care in the least, but I need to express this somewhere anyway:
Not only can I no longer turn a profit, I am taking a loss selling product on Amazon. When factoring my product cost and inbound transportation it's a sizable loss. I am, in effect giving Amazon product to sell AND paying them to do it.
I have run Amazon accounts for several successful companies over the years, and I am truly baffled by the direction Amazon is taking with fees.
Unless they have decided to become a full logistics based business, and reduce sales on the marketplace, this makes less than zero sense. Even if that were the case why would you put your potential customers out of business?
The only reason to put up with Amazon's ridiculousness was because you still made money with them. When that stops, people won't put up with all the complications. Look no further than eBay for an example. No one could imagine eBay becoming insignificant... yet it happened.
0 replies
Seller_bnwz2neE3MBFS
You're not alone. We've been feeling plenty of despair ourselves with all the latest changes, especially regarding the inbound placement fees and low inventory fees, which have yet to take effect. The initial sharing of the low inventory fees can amount to up to 90 cents per unit. We sell many items priced under $10-15, and this practically eats up everything unless prices go up to compensate for these changes. Additionally, we simply cannot acquire hundreds or thousands of items that Amazon is requesting us to pick up; our supplier doesn't provide those quantities on a consistent basis.
Seller_nRFmxiQg4EGrw
It's pretty simple; Amazon wants to stop losing money on these areas. For years, the FBA fees have not fully covered all of the various costs (in total) for Amazon to make it profitable to the level required by the shareholders. They've built out the FC network quite extensively; now they want more PROFITABLE business, not just "more business". They don't care if you or I no longer can make a profit; it's nothing personal, just business.
That's pretty much the reason to be in business anywhere. We have to worry about fees, B&M sellers have to worry about rent and utilities. If you don't make money at something, time to change your plan.
Funny, For us, eBay is outperforming Amazon by about 50% in sales. Not insignificant at all. Of course, part of this is because of the changes at Amazon; there are things I no longer ship to FBA.
But you are correct; if the fees get to the point that you do not make a profit, then you should stop selling on Amazon, or at least change what you sell. Business is always changing; those that adapt can do well; those that don't still have a warehouse full of Beanie Babies.
Seller_4zBzdtgCyS9EI
for every American (and other) seller they push out, a Chinese mass producer of junk moves in that ones place. Since they ship it from there to the warehouse for less than we ship it from Texas to New York, they will stay in business....there seems to be a clear goal of getting rid of small FBA sellers.
Seller_rGcQW1yb6ZWbC
Any retail business must know its costs up front. Whether you are a specially shop in the local mall, the grocery store on Main street, or a Third Party Seller on Amazon. Know your expenses. Know your profit margin. Figure out how to make the one number smaller and the other number bigger. That is basic business.
If you are not making a profit on Amazon, then you have to pivot. Discussing how you are losing money is not going to change the fact unless you figure out where the bleed is coming from and how to stop it. If you can't figure out how to make money on this site, then it may be time to pivot - either change your product, change how you sell it, or change the platform on which you sell it. Or get a new job.
I do not know what you mean by 'Amazon's ridiculousness.' I know the rules up front and I stay within them. I make plenty of money from this site (yes I wish it were more) and I have no intention of going anywhere. I know what the fees are before I list an item and I make sure I will turn a profit if/when it sells before it sells.
Seller_Sram36TnVt73c
ive just turned off all advertising...it's gotten too expensive in comparison to my sales.
i think this is the beginning of my downward spiral.
Monday night's The Daily Show had an interesting inverview with FTC Chair, if you have it on demand...Amazon marketplace sellers came up.
Seller_nRFmxiQg4EGrw
Um, not sure I would go THAT far. ;-)
Seller_M4NWRaRnU1uDM
@Seller_nRFmxiQg4EGrw
Amazon may want to stop losing money on those areas; however, it comes at a cost. The reason they were able to get so big with the FBA sellers is because they subsidized or provided that service at a reasonable cost. This will deter many businesses from selling on Amazon and the number of products will be lower (and at a higher cost).
I do not know if you buy items from distributors but we cannot control how often a product is stocked. Rebates affect prices and many items become discontinued. The low inventory fee is an unavoidable fee-albiet, eventually (for all sellers who buy from distributors). Prices have to go up. FBA prices will be much higher than FBM. I am seeing the affect on this regarding several items already. FBA prices have become over 30% higher than FBM prices for good/high selling SKUS. Prime customers may not pay it or they will buy less of it. Less items stocked for prime either way.
The effects of Amazon's new fees will take time to show how detrimental they are to sellers. When FBA prime products are so high or not comparable to FBM or other marketplaces then Amazon will see and feel that.
You cannot charge a fee for something someone has no control over (how much inventory the distributors stock). Then when prices have to be raised (because of low iventory fee and inbound fee) take away the buy box because the prices are not competitive enough.
If Amazon wants low prices or competitive prices then they need to provide a platform that encourages this. They cannot have it both ways. In my opinion, prime members are ridiculous for paying for prime. You know how much more prime products cost-that are not sold by Amazon (or stocked regularly by Amazon)- then other marketplaces or FBM sellers? The true cost of Prime is very very high.
Seller_wuFk0wIj5xIkf
stop complaining and just quit if you cant adapt
Seller_LyYw7fQRKc5G7
As we all know, the online market place is not static. If the current method is no longer profitable then you will need to find another way to do this. be it FBM or moving to sell in other marketplaces.
Amazon is doing what is profitable to Amazon. Our profitability is not their problem as we are not even partners. Reading the Sellers ToS might put how they see us into perspective.
Selling on Amazon has Officially Become a Loss
Not that anyone at Amazon will care in the least, but I need to express this somewhere anyway:
Not only can I no longer turn a profit, I am taking a loss selling product on Amazon. When factoring my product cost and inbound transportation it's a sizable loss. I am, in effect giving Amazon product to sell AND paying them to do it.
I have run Amazon accounts for several successful companies over the years, and I am truly baffled by the direction Amazon is taking with fees.
Unless they have decided to become a full logistics based business, and reduce sales on the marketplace, this makes less than zero sense. Even if that were the case why would you put your potential customers out of business?
The only reason to put up with Amazon's ridiculousness was because you still made money with them. When that stops, people won't put up with all the complications. Look no further than eBay for an example. No one could imagine eBay becoming insignificant... yet it happened.
Selling on Amazon has Officially Become a Loss
Not that anyone at Amazon will care in the least, but I need to express this somewhere anyway:
Not only can I no longer turn a profit, I am taking a loss selling product on Amazon. When factoring my product cost and inbound transportation it's a sizable loss. I am, in effect giving Amazon product to sell AND paying them to do it.
I have run Amazon accounts for several successful companies over the years, and I am truly baffled by the direction Amazon is taking with fees.
Unless they have decided to become a full logistics based business, and reduce sales on the marketplace, this makes less than zero sense. Even if that were the case why would you put your potential customers out of business?
The only reason to put up with Amazon's ridiculousness was because you still made money with them. When that stops, people won't put up with all the complications. Look no further than eBay for an example. No one could imagine eBay becoming insignificant... yet it happened.
0 replies
0 replies
Seller_bnwz2neE3MBFS
You're not alone. We've been feeling plenty of despair ourselves with all the latest changes, especially regarding the inbound placement fees and low inventory fees, which have yet to take effect. The initial sharing of the low inventory fees can amount to up to 90 cents per unit. We sell many items priced under $10-15, and this practically eats up everything unless prices go up to compensate for these changes. Additionally, we simply cannot acquire hundreds or thousands of items that Amazon is requesting us to pick up; our supplier doesn't provide those quantities on a consistent basis.
Seller_nRFmxiQg4EGrw
It's pretty simple; Amazon wants to stop losing money on these areas. For years, the FBA fees have not fully covered all of the various costs (in total) for Amazon to make it profitable to the level required by the shareholders. They've built out the FC network quite extensively; now they want more PROFITABLE business, not just "more business". They don't care if you or I no longer can make a profit; it's nothing personal, just business.
That's pretty much the reason to be in business anywhere. We have to worry about fees, B&M sellers have to worry about rent and utilities. If you don't make money at something, time to change your plan.
Funny, For us, eBay is outperforming Amazon by about 50% in sales. Not insignificant at all. Of course, part of this is because of the changes at Amazon; there are things I no longer ship to FBA.
But you are correct; if the fees get to the point that you do not make a profit, then you should stop selling on Amazon, or at least change what you sell. Business is always changing; those that adapt can do well; those that don't still have a warehouse full of Beanie Babies.
Seller_4zBzdtgCyS9EI
for every American (and other) seller they push out, a Chinese mass producer of junk moves in that ones place. Since they ship it from there to the warehouse for less than we ship it from Texas to New York, they will stay in business....there seems to be a clear goal of getting rid of small FBA sellers.
Seller_rGcQW1yb6ZWbC
Any retail business must know its costs up front. Whether you are a specially shop in the local mall, the grocery store on Main street, or a Third Party Seller on Amazon. Know your expenses. Know your profit margin. Figure out how to make the one number smaller and the other number bigger. That is basic business.
If you are not making a profit on Amazon, then you have to pivot. Discussing how you are losing money is not going to change the fact unless you figure out where the bleed is coming from and how to stop it. If you can't figure out how to make money on this site, then it may be time to pivot - either change your product, change how you sell it, or change the platform on which you sell it. Or get a new job.
I do not know what you mean by 'Amazon's ridiculousness.' I know the rules up front and I stay within them. I make plenty of money from this site (yes I wish it were more) and I have no intention of going anywhere. I know what the fees are before I list an item and I make sure I will turn a profit if/when it sells before it sells.
Seller_Sram36TnVt73c
ive just turned off all advertising...it's gotten too expensive in comparison to my sales.
i think this is the beginning of my downward spiral.
Monday night's The Daily Show had an interesting inverview with FTC Chair, if you have it on demand...Amazon marketplace sellers came up.
Seller_nRFmxiQg4EGrw
Um, not sure I would go THAT far. ;-)
Seller_M4NWRaRnU1uDM
@Seller_nRFmxiQg4EGrw
Amazon may want to stop losing money on those areas; however, it comes at a cost. The reason they were able to get so big with the FBA sellers is because they subsidized or provided that service at a reasonable cost. This will deter many businesses from selling on Amazon and the number of products will be lower (and at a higher cost).
I do not know if you buy items from distributors but we cannot control how often a product is stocked. Rebates affect prices and many items become discontinued. The low inventory fee is an unavoidable fee-albiet, eventually (for all sellers who buy from distributors). Prices have to go up. FBA prices will be much higher than FBM. I am seeing the affect on this regarding several items already. FBA prices have become over 30% higher than FBM prices for good/high selling SKUS. Prime customers may not pay it or they will buy less of it. Less items stocked for prime either way.
The effects of Amazon's new fees will take time to show how detrimental they are to sellers. When FBA prime products are so high or not comparable to FBM or other marketplaces then Amazon will see and feel that.
You cannot charge a fee for something someone has no control over (how much inventory the distributors stock). Then when prices have to be raised (because of low iventory fee and inbound fee) take away the buy box because the prices are not competitive enough.
If Amazon wants low prices or competitive prices then they need to provide a platform that encourages this. They cannot have it both ways. In my opinion, prime members are ridiculous for paying for prime. You know how much more prime products cost-that are not sold by Amazon (or stocked regularly by Amazon)- then other marketplaces or FBM sellers? The true cost of Prime is very very high.
Seller_wuFk0wIj5xIkf
stop complaining and just quit if you cant adapt
Seller_LyYw7fQRKc5G7
As we all know, the online market place is not static. If the current method is no longer profitable then you will need to find another way to do this. be it FBM or moving to sell in other marketplaces.
Amazon is doing what is profitable to Amazon. Our profitability is not their problem as we are not even partners. Reading the Sellers ToS might put how they see us into perspective.
Seller_bnwz2neE3MBFS
You're not alone. We've been feeling plenty of despair ourselves with all the latest changes, especially regarding the inbound placement fees and low inventory fees, which have yet to take effect. The initial sharing of the low inventory fees can amount to up to 90 cents per unit. We sell many items priced under $10-15, and this practically eats up everything unless prices go up to compensate for these changes. Additionally, we simply cannot acquire hundreds or thousands of items that Amazon is requesting us to pick up; our supplier doesn't provide those quantities on a consistent basis.
Seller_bnwz2neE3MBFS
You're not alone. We've been feeling plenty of despair ourselves with all the latest changes, especially regarding the inbound placement fees and low inventory fees, which have yet to take effect. The initial sharing of the low inventory fees can amount to up to 90 cents per unit. We sell many items priced under $10-15, and this practically eats up everything unless prices go up to compensate for these changes. Additionally, we simply cannot acquire hundreds or thousands of items that Amazon is requesting us to pick up; our supplier doesn't provide those quantities on a consistent basis.
Seller_nRFmxiQg4EGrw
It's pretty simple; Amazon wants to stop losing money on these areas. For years, the FBA fees have not fully covered all of the various costs (in total) for Amazon to make it profitable to the level required by the shareholders. They've built out the FC network quite extensively; now they want more PROFITABLE business, not just "more business". They don't care if you or I no longer can make a profit; it's nothing personal, just business.
That's pretty much the reason to be in business anywhere. We have to worry about fees, B&M sellers have to worry about rent and utilities. If you don't make money at something, time to change your plan.
Funny, For us, eBay is outperforming Amazon by about 50% in sales. Not insignificant at all. Of course, part of this is because of the changes at Amazon; there are things I no longer ship to FBA.
But you are correct; if the fees get to the point that you do not make a profit, then you should stop selling on Amazon, or at least change what you sell. Business is always changing; those that adapt can do well; those that don't still have a warehouse full of Beanie Babies.
Seller_nRFmxiQg4EGrw
It's pretty simple; Amazon wants to stop losing money on these areas. For years, the FBA fees have not fully covered all of the various costs (in total) for Amazon to make it profitable to the level required by the shareholders. They've built out the FC network quite extensively; now they want more PROFITABLE business, not just "more business". They don't care if you or I no longer can make a profit; it's nothing personal, just business.
That's pretty much the reason to be in business anywhere. We have to worry about fees, B&M sellers have to worry about rent and utilities. If you don't make money at something, time to change your plan.
Funny, For us, eBay is outperforming Amazon by about 50% in sales. Not insignificant at all. Of course, part of this is because of the changes at Amazon; there are things I no longer ship to FBA.
But you are correct; if the fees get to the point that you do not make a profit, then you should stop selling on Amazon, or at least change what you sell. Business is always changing; those that adapt can do well; those that don't still have a warehouse full of Beanie Babies.
Seller_4zBzdtgCyS9EI
for every American (and other) seller they push out, a Chinese mass producer of junk moves in that ones place. Since they ship it from there to the warehouse for less than we ship it from Texas to New York, they will stay in business....there seems to be a clear goal of getting rid of small FBA sellers.
Seller_4zBzdtgCyS9EI
for every American (and other) seller they push out, a Chinese mass producer of junk moves in that ones place. Since they ship it from there to the warehouse for less than we ship it from Texas to New York, they will stay in business....there seems to be a clear goal of getting rid of small FBA sellers.
Seller_rGcQW1yb6ZWbC
Any retail business must know its costs up front. Whether you are a specially shop in the local mall, the grocery store on Main street, or a Third Party Seller on Amazon. Know your expenses. Know your profit margin. Figure out how to make the one number smaller and the other number bigger. That is basic business.
If you are not making a profit on Amazon, then you have to pivot. Discussing how you are losing money is not going to change the fact unless you figure out where the bleed is coming from and how to stop it. If you can't figure out how to make money on this site, then it may be time to pivot - either change your product, change how you sell it, or change the platform on which you sell it. Or get a new job.
I do not know what you mean by 'Amazon's ridiculousness.' I know the rules up front and I stay within them. I make plenty of money from this site (yes I wish it were more) and I have no intention of going anywhere. I know what the fees are before I list an item and I make sure I will turn a profit if/when it sells before it sells.
Seller_rGcQW1yb6ZWbC
Any retail business must know its costs up front. Whether you are a specially shop in the local mall, the grocery store on Main street, or a Third Party Seller on Amazon. Know your expenses. Know your profit margin. Figure out how to make the one number smaller and the other number bigger. That is basic business.
If you are not making a profit on Amazon, then you have to pivot. Discussing how you are losing money is not going to change the fact unless you figure out where the bleed is coming from and how to stop it. If you can't figure out how to make money on this site, then it may be time to pivot - either change your product, change how you sell it, or change the platform on which you sell it. Or get a new job.
I do not know what you mean by 'Amazon's ridiculousness.' I know the rules up front and I stay within them. I make plenty of money from this site (yes I wish it were more) and I have no intention of going anywhere. I know what the fees are before I list an item and I make sure I will turn a profit if/when it sells before it sells.
Seller_Sram36TnVt73c
ive just turned off all advertising...it's gotten too expensive in comparison to my sales.
i think this is the beginning of my downward spiral.
Monday night's The Daily Show had an interesting inverview with FTC Chair, if you have it on demand...Amazon marketplace sellers came up.
Seller_Sram36TnVt73c
ive just turned off all advertising...it's gotten too expensive in comparison to my sales.
i think this is the beginning of my downward spiral.
Monday night's The Daily Show had an interesting inverview with FTC Chair, if you have it on demand...Amazon marketplace sellers came up.
Seller_nRFmxiQg4EGrw
Um, not sure I would go THAT far. ;-)
Seller_nRFmxiQg4EGrw
Um, not sure I would go THAT far. ;-)
Seller_M4NWRaRnU1uDM
@Seller_nRFmxiQg4EGrw
Amazon may want to stop losing money on those areas; however, it comes at a cost. The reason they were able to get so big with the FBA sellers is because they subsidized or provided that service at a reasonable cost. This will deter many businesses from selling on Amazon and the number of products will be lower (and at a higher cost).
I do not know if you buy items from distributors but we cannot control how often a product is stocked. Rebates affect prices and many items become discontinued. The low inventory fee is an unavoidable fee-albiet, eventually (for all sellers who buy from distributors). Prices have to go up. FBA prices will be much higher than FBM. I am seeing the affect on this regarding several items already. FBA prices have become over 30% higher than FBM prices for good/high selling SKUS. Prime customers may not pay it or they will buy less of it. Less items stocked for prime either way.
The effects of Amazon's new fees will take time to show how detrimental they are to sellers. When FBA prime products are so high or not comparable to FBM or other marketplaces then Amazon will see and feel that.
You cannot charge a fee for something someone has no control over (how much inventory the distributors stock). Then when prices have to be raised (because of low iventory fee and inbound fee) take away the buy box because the prices are not competitive enough.
If Amazon wants low prices or competitive prices then they need to provide a platform that encourages this. They cannot have it both ways. In my opinion, prime members are ridiculous for paying for prime. You know how much more prime products cost-that are not sold by Amazon (or stocked regularly by Amazon)- then other marketplaces or FBM sellers? The true cost of Prime is very very high.
Seller_M4NWRaRnU1uDM
@Seller_nRFmxiQg4EGrw
Amazon may want to stop losing money on those areas; however, it comes at a cost. The reason they were able to get so big with the FBA sellers is because they subsidized or provided that service at a reasonable cost. This will deter many businesses from selling on Amazon and the number of products will be lower (and at a higher cost).
I do not know if you buy items from distributors but we cannot control how often a product is stocked. Rebates affect prices and many items become discontinued. The low inventory fee is an unavoidable fee-albiet, eventually (for all sellers who buy from distributors). Prices have to go up. FBA prices will be much higher than FBM. I am seeing the affect on this regarding several items already. FBA prices have become over 30% higher than FBM prices for good/high selling SKUS. Prime customers may not pay it or they will buy less of it. Less items stocked for prime either way.
The effects of Amazon's new fees will take time to show how detrimental they are to sellers. When FBA prime products are so high or not comparable to FBM or other marketplaces then Amazon will see and feel that.
You cannot charge a fee for something someone has no control over (how much inventory the distributors stock). Then when prices have to be raised (because of low iventory fee and inbound fee) take away the buy box because the prices are not competitive enough.
If Amazon wants low prices or competitive prices then they need to provide a platform that encourages this. They cannot have it both ways. In my opinion, prime members are ridiculous for paying for prime. You know how much more prime products cost-that are not sold by Amazon (or stocked regularly by Amazon)- then other marketplaces or FBM sellers? The true cost of Prime is very very high.
Seller_wuFk0wIj5xIkf
stop complaining and just quit if you cant adapt
Seller_wuFk0wIj5xIkf
stop complaining and just quit if you cant adapt
Seller_LyYw7fQRKc5G7
As we all know, the online market place is not static. If the current method is no longer profitable then you will need to find another way to do this. be it FBM or moving to sell in other marketplaces.
Amazon is doing what is profitable to Amazon. Our profitability is not their problem as we are not even partners. Reading the Sellers ToS might put how they see us into perspective.
Seller_LyYw7fQRKc5G7
As we all know, the online market place is not static. If the current method is no longer profitable then you will need to find another way to do this. be it FBM or moving to sell in other marketplaces.
Amazon is doing what is profitable to Amazon. Our profitability is not their problem as we are not even partners. Reading the Sellers ToS might put how they see us into perspective.
