In my opinion, Amazon's Lightning Deals are a combination of both gambling and a lottery—where sellers risk money for a chance at a reward. However, in most cases, it seems Amazon is the real winner, while sellers, especially small businesses, are left at a disadvantage.

As a small business owner who has been selling on Amazon for the past seven years, I can say this with conviction. Many of my products have earned the "Amazon's Choice" badge over time, maintaining star ratings between 4.3 and 4.5. Despite this consistent performance, my recent experience with a Lightning Deal has been disappointing and financially damaging.

This week, for the first time, I accepted a Lightning Deal on one of my top-performing products, which has three variations and an impressive average rating of 4.4–4.5 stars. Out of a total inventory of 730 units available in Amazon's FBA warehouses for these SKUs, Amazon only allocated 51 units to the deal. Unfortunately, the results were dismal—only 11 units were sold during the promotion.

Here’s the exact cost and benefit analysis:

1. Sales Revenue: $240.96

2. Expenses: $341.83

o Lightning Deal Fee: $150

o Amazon FBA Fee: $88.43

o Cost of Goods: $103.40

3. Net Loss: $100.87

Moreover, the units sold during the Lightning Deal were offered at a 20% discounted price, which further increased my losses.

For small businesses like mine—families who rely on Amazon sales for their bread and butter—this is not a fair game. Promotions like Lightning Deals are marketed as opportunities to increase sales and visibility, but they often fail to deliver tangible benefits while imposing significant costs.

Conclusion:

Amazon's Lightning Deals may seem like an enticing way to boost sales, but the reality is that they can lead to financial losses, especially for small sellers. I urge Amazon to reassess the fairness of this program, particularly for small businesses that have been loyal to the platform for years. As sellers, we deserve transparency and a better chance of achieving the rewards these deals promise.