Why I Stopped Selling on Amazon
The Amazon community is vast and is a major platform for Sellers. The success of so many people in recent years has been directly related to the popularity of Amazon. Suspension specialists Thompson and Holt's managing partner, Craig Gedey, has significant experience selling on Amazon. His insights into Amazon's community and the issues surrounding its success can be found in this article. Read on for more details. Weigh the pros and cons before you make your decision.
Many people are concerned that Amazon is too big and has too much power. They question whether they can compete with the huge company. The answer to that question depends on the size and control of Amazon. Brand owners have also been wary of the brand experience on Amazon. Still, nearly four out of every ten ecommerce sales take place on the site. And more brands are making the move. It is essential to take a proactive approach to success on Amazon, where over 3 million sellers and 300 million users make their home.
I stopped selling on Amazon because of overcharring, and it cost me money. Amazon charges a referral fee that can add up to a substantial amount. The fee varies based on category, and can range anywhere from eight to 45%. The highest rate is 45% for Amazon device accessories. If you don't understand Amazon's fee structure, you can get stuck with an ASIN in the wrong category. In either case, you'll end up paying a large amount of money.
The good news is that if your product is being overcharged, you can request that the fees be remeasured. Amazon can do this if the measurements or weight are incorrect. To do this, you simply submit the ASIN for the product in question. Then, Amazon will review the product and provide you with the updated weight and measurements. If you've made the request for re-measurement, you can ask for a reimbursement.
Some of my best selling experiences on Amazon have been when I used a feedback magnet email automation software. This software helps sellers automatically send a review magnet email sequence to all of their customers. While this may seem like overkill, it is actually beneficial for many sellers. Most of the seasoned Amazon sellers don't need such a system, and in my experience, precise manual control is still better than cleverly-designed automated software.
While some management tasks may require more time, many of them are easily automated. Niche finding is the bread and butter of some Amazon Sellers. These sellers spend two or three hours each day checking out their competitors and repricing their products to remain profitable. Automated software can help with this task, as it is flexible and precise. One example of an auto-emailing sequence solution is MailChimp, which can integrate with the Amazon Sellers API to deliver automated follow-up emails to customers.
Amazon's "community contribution" principle
The problem with Amazon's marketplace is that sellers are allowed to use the same listing, just as if they were Wikipedia articles. The "community contribution" principle means that anyone can edit a product listing, and the community will decide which photos, descriptions, and prices are the best. While this works well most of the time, it can also lead to issues if malicious actors are able to alter the page.
One example is the recent case of a competitor who changed listings on Amazon by deleting customer reviews and removing the picture of a PlayStation 4 with a yoga ball. This caused confusion for many customers and caused them to avoid the product and purchase the PlayStation 4. This is not a unique issue. Amazon has a complex hierarchy for implementing changes, and malicious sellers have figured out how to bypass this process. They even sell fake Vendor Central accounts - a hot commodity in black market Amazon services selling.