Amazon Selling - Your Experience
What business model are you selling on Amazon with?
Where do you see the future of this business model on Amazon?
I came here to whine about the selling application process until I saw all of the problem posts here.
It seems Amazon changes things often that can disrupt your business model or profitability. I’m interested in what experience you’ve had, and how you see the near future playing out for your business.
Putting this under manage inventory category for lack of a general category.
Amazon Selling - Your Experience
What business model are you selling on Amazon with?
Where do you see the future of this business model on Amazon?
I came here to whine about the selling application process until I saw all of the problem posts here.
It seems Amazon changes things often that can disrupt your business model or profitability. I’m interested in what experience you’ve had, and how you see the near future playing out for your business.
Putting this under manage inventory category for lack of a general category.
6 replies
Seller_OvL8C4BJWiuS9
It's different for everyone. Whatever works for your business may not work for someone else's.
Topher_Amazon
Hi @Seller_l3DTbgvBgNMF2,
While other sellers will of course be the best sources of feedback here, as it relates to:
if you are having issues I recommend checking out the resources on Seller University, checking the New Seller Community here on forums with thousands of others starting their journey, or sharing your issue in the Account Setup category where a Community Manager may be able to assist.
Regards,
Topher
Seller_HjfyVYcuJdbTf
You'll hear many sellers warn against FBA and for good reason.
Amazon constantly changes rules, provides poor support, and lacks transparency. Here is just a few examples (there's more):
- Other sellers are subsidized, are you?: Chinese sellers get Chinese government subsidies & discounted shipping as a "developing country", making it impossible for US sellers to compete. I sell the same/similar item, but their shipping from China to the U.S. is $2.99. I can’t even ship within the U.S. for that. USPS is constantly raising rates (because many Americans feel no tax $$$ should go to subsidizing our postal service). Then, on top of the difference in shipping costs, factor in the cost of goods. They instantly knock-off and knock-out US sellers because they're not truly paying the real costs. Meanwhile, U.S. businesses get hit with higher shipping rates, taxes, and stricter enforcement, making it nearly impossible to compete.
- Misleading Seller Central Info: Orders show "Awaiting Payment" when they’re really just stuck in fulfillment. Amazon’s overseas support misinterprets delays as payment issues when that’s rarely the case. This is one example... understanding all the fees, delays, and actual profit margins require the use of other app's. Amazon Seller Central is opaque and hasn't been re-vamped.
- Lack of Accountability: FBA makes frequent mistakes, and sellers pay the price. I’ve had inventory marked unavailable for weeks while they “rearranged an aisle” yet still charged me storage fees while we missed key selling season and product value dropped.
- Lack of Accountability 2: When Amazon ships an item for me through MCF (fulfilling an order from another site), they usually use the same Amazon drivers and vehicles, but unlike Amazon orders, they don’t take a delivery photo. I had an $800 order go missing, and Amazon INSISTED it was delivered because their tracking said so. No proof. No photo. Luckily, the buyer had a Ring camera showing nothing was delivered at that time. Convenient how FBA has a different delivery process for MCF orders than for Amazon sales. Why no photo proof when it’s not their own sale (but they're still charging sellers for storage and fulfillment)?
- Conflicts of Interest: Amazon competes with its own sellers while controlling placement and pricing. They don't provide references to their quoted Competitive Pricing (which you must meet or beat to get buy box) and a Google search won't show any competitor selling as low as what AMZ if forcing sellers to.
- Inventory stuck at FBA: If they shut down a listing/SKU for some unknown reason, your stock is stuck at FBA, and removal fees/costs add up quick. If AMZ adds exorbitant storage or fulfillment fees after your inventory is already at their warehouses, you're stuck paying unexpected fees that weren't planned for (with already low margins to price competitively).
- Brutal Return Process: Amazon encourages buyers to "window shop," leading to opened, damaged returns with multiple shipping labels on packaging. Sellers pay all postage plus return fees (from buyer to AMZ, then AMZ back to you even though item might be re-sellable). Amazon profits while we take the losses.
I stopped sending inventory into FBA. If you try Amazon, be ready for sales to drop from 100% to 0 overnight. IMO, FBA for US sellers only makes sense for small, low cost/extremely high margin, and lightweight items. Otherwise, find another fulfillment option - Amazon fulfillment is just not worth it anymore.
Seller_4mtlGtoHN5tIN
As many good points have been made against FBA, I advise stating away entirely from this platform as a FBM seller as well.
This was a great platform to resell products, however due to so many fakes and counterfeits that have flooded the market it has become impossible to compete. We sell major brand electronics, it was great 5 years ago. Now we have competitors selling fakes on the actual brand listings for Sony, Microsoft, Nintendo, etc.. which has made it impossible for legitimate sellers such as ourselves to compete.
We did what Amazon should have done to protect their U.S sellers, make a few sample orders to verify authenticity. Everything we ordered from competitors based out of China and other countries were found to be high quality fakes once opened and examined internally.
If you are a brand owner and direct manufacturer of a product with a 200% ROI than this can be a great channel. If not, do not waste your time. Amazon for third party sellers is now broken. Also, with Amazon's recent Ai bot changes, FBM sellers get little to no visibility at all even if you are the only seller of a listing. They are trying to force FBM to switch to FBA so that they can absolutely screw you, this is where they make the bulk of their money.
Best of Luck
