If your following the latest and hottest techniques for marketing on the Internet you must of heard about the latest big promotion by Matt Clark and Jason Katzenback for the Amazon Builders Kit.
This new promotion has lots of potential for selling products on Amazon. I must admit I was very intrigued with the potential for selling real products.
Just as the hype was at its peak I see an interesting news item come across my PC with all is not doing well in paradise.
It appears that Amazon has drastically increased their fee’s to the sellers making it difficult for sellers on thin margins. This has caused quite an outcry with all the sellers who have made the program successful.
Here is a piece of what is being said from the news item.
Amazon said many of the fee increases have been driven by rising costs, such as higher gas prices and hence transport expenses. It said it has also invested in changes to get products to customers quicker – a push that third-party sellers will benefit from because faster shipping should increase sales.
But sellers see it differently, complaining on online seller forums that Amazon’s fatter returns came partly from putting a heavier burden on their shoulders. “Shipping & fees are killing my margins,” wrote one seller last month.
Another, in August, complained about higher fees for selling electronic accessories that were due to kick in early this year: “Holy crap! 8% to 15%?! Goodbye good deals from 3rd party sellers on Amazon in the electronics section.”
A third ranted in August about higher costs for shipping products to multiple Amazon warehouses. “Amazon just pulled a fast one,” the seller wrote. “Now that Amazon has all the power, they’re imposing increased fee hikes to all those cozy sellers who have supported Amazon since Day 1.”
The complaints became so raucous last year that the company took the forums down and re-launched them. The new forums let sellers give each other ratings for their posts – a move that some sellers viewed as a way to reduce extreme complaints.
To view the details of the complete news item here is the link
http://finance.yahoo.com/news/analysis-amazons-sellers-unhappy-fee-110816194.html
What a coincident this particular news item pops up.
My take on this is if given lemons make lemonade, it appears there is potential to go with Amazon’s competition. Walmart, eBay, and Google they are all positioning themselves for stealing a piece of Amazon’s program for “Fulfillment By Amazon,” or FBA, with their own programs.
So if your thinking about this it might make sense to check out the competition and see how you might fit in this lucrative market.
On the flip side of things with no finger pointing, what bad timing for getting people excited on a new program having to do with this negative news.
I guess it’s about doing your due diligence on checking what is really happening before jumping in with both feet into any program.
All of these major companies have forums/boards where sellers exchange information and also rant about what is really going on, so being informed is prudent before bellying up to the bar in any venture.
To your success
Ed