FBA seller here, too. I make and sell my own patented device which nobody else makes or sells. I have competitors in the same category but my product is novel, more functional, and more expensive to make.
I was doing FBM (fulfillment by merchant) because I like shipping my product directly from my place of business but I had to switch to FBA to get my sales to go up. They were already getting half but now Amazon is getting more than half of my revenue.
I also have my own site where I can sell for the same price and keep much more of the revenue, but most shoppers won’t buy if they didn’t find it on Amazon. If I leave Amazon or raise my Amazon price to recoup the costs or stop paying for FBA and Amazon ads, I lose almost all of my sales. This is all because Amazon is doing anticompetitive things with its monopoly power. Enforcement is needed. I don’t know what the injunctions will propose to do but I’m eager to find out.
What really kills me is knowing how my customers would feel if I told them how much of their purchase price is being kept by Amazon. They value my product enough to buy it for that price. The few who really understand Amazon always offer to buy it directly from me so I get to keep more of the money. If only everyone understood that.
I have to spend some more time and money optimizing my Amazon listings and then I will turn my focus onto my site and spend all my effort building my business to survive in spite of Amazon.
>I also have my own site where I can sell for the same price and keep much more of the revenue, but most shoppers won’t buy if they didn’t find it on Amazon. If I leave Amazon or raise my Amazon price to recoup the costs or stop paying for FBA and Amazon ads, I lose almost all of my sales. This is all because Amazon is doing anticompetitive things with its monopoly power.
Can you expand on what you think Amazon is doing wrong here?
When I buy products online, I almost exclusively buy them from Amazon because I've had too many bad experiences with other sites. That strikes me as a case of consumer choice, not anti-competitive practices.
I once purchased a Japanese candy pack from a supposedly-reputable website that was supposed to be a Christmas gift, but they didn't give me a tracking number and wouldn't refund it after a month of no delivery until I filed a chargeback.
By contrast, I've never had any trouble getting Amazon to honor their refund policy for "Prime" products, which is why I've stuck with them.
Amazon charges exorbitant fees to Marketplace sellers and adds to the cost of everything sold on Amazon. Are you aware of who is the seller every time you buy something? When the seller is not Amazon, do you know how much of the price is going directly to Amazon? Is it worth it for what Amazon provides you?
In my category Amazon takes 15% of every sale. That’s even true for FBM where Amazon never lays eyes or hands on the merchandise. Also still true even though I have always taken perfect care of every customer. Good luck selling anything on Amazon without paying even more for Amazon advertising, a closed system with high prices. And then there’s the Prime badge and FBA, more expenses that you can hardly afford not to pay. Buyers are trained to demand them and Amazon reaps the profits.
If you buy from my website I pay a small transaction fee, shipping, and advertising. I can afford to sell for much less, making my customers just as happy or better since I can personalize the service in ways Amazon just does not allow.
But I can’t lower my prices anywhere off Amazon because they will retaliate by burying my product where nobody will find it.
Amazon customers (I admit I am one, too) are paying higher prices for almost everything they buy. But they/we are also supporting a marketplace regime that forces prices up everywhere. Everyone, not just Amazon customers, gets to pay the higher Amazon price.
My website customers are essentially subsidizing the profits that Amazon is making from my sales on their platform.
You might think you want someone big and strong like Amazon protecting you from scammy sellers. If they wanted to do that they would get rid of them and keep the good ones. Instead they keep the bad ones around so you get to experience their protection racket. You’re sticking up for the bully and paying for the privilege.
I was doing FBM (fulfillment by merchant) because I like shipping my product directly from my place of business but I had to switch to FBA to get my sales to go up. They were already getting half but now Amazon is getting more than half of my revenue.
I also have my own site where I can sell for the same price and keep much more of the revenue, but most shoppers won’t buy if they didn’t find it on Amazon. If I leave Amazon or raise my Amazon price to recoup the costs or stop paying for FBA and Amazon ads, I lose almost all of my sales. This is all because Amazon is doing anticompetitive things with its monopoly power. Enforcement is needed. I don’t know what the injunctions will propose to do but I’m eager to find out.
What really kills me is knowing how my customers would feel if I told them how much of their purchase price is being kept by Amazon. They value my product enough to buy it for that price. The few who really understand Amazon always offer to buy it directly from me so I get to keep more of the money. If only everyone understood that.
I have to spend some more time and money optimizing my Amazon listings and then I will turn my focus onto my site and spend all my effort building my business to survive in spite of Amazon.
Literally in spite.