#108 - Amazon Takes a 50% of Revenue, FTC Targets Amazon Seller, and more
Amazon is pocketing more than 50% of sellers’ revenue - up from 40% five years ago. Sellers are paying more because Amazon has increased fulfillment fees and made spending on advertising unavoidable.
In order to sell hundreds of millions of different products to consumers around the world, Amazon’s sales platform is supported by more than 6 million third-party sellers worldwide. Of those sellers, 26% sell products using a sales model called wholesale.
Fearing antitrust investigations, Amazon has promoted itself as a hub for entrepreneurs and made nods to the American fantasy of “mom and pop” small businesses. But the tech giant’s sprawling third party seller workforce are not like traditional small businesses.
Good to Know
An Amazon seller was accused of “review hijacking” and will pay the government $600,000 in fines, according to the Federal Trade Commission (FTC). But the seller wasn’t hijacking another seller’s reviews – it was allegedly hijacking reviews left by its own customers of its other products.
Seattle – An Acworth, Georgia man, who was deeply involved in a bribery scheme to obtain inside information and improper benefits from Amazon employees was sentenced today to 20 months in prison, announced U.S. Attorney Nick Brown. Hadis Nuhanovic, 32, used inside information to break Amazon Marketplace platform rules and increase some sellers’ income to the detriment of others.
CEO and co-founder Tracey Richardson said it began in the early 1950s in Charleston, South Carolina, where her father spent his summers in the kitchen with his grandma and Aunt Lillie. No matter who came to visit, the women never let guests leave feeling unwanted, unloved, or hungry.
Shein will likely launch a marketplace in the U.S. after testing the model in Brazil and Mexico. The number one most-downloaded shopping app in the world is expanding beyond fashion and local manufacturers in China.
In the last six to 12 months the pace at which clients want to discuss selling on other marketplaces has accelerated, agency heads say. They attribute this to increased competition on Amazon, the war on profit margins and rising FBA costs, among other factors. A recent study of more than 2,000 Amazon sellers by Jungle Scout drives this point home, that 52% of the brands surveyed wanted to expand to selling on additional e-commerce platforms in 2023.
It looks like 2023 is going to be a big year for e-commerce, with online stores expected to have an influx of over 265 million US shoppers. As consumerism continues to evolve, we will see further advancements and changes throughout online shopping.
Amazon suddenly changed the condition of books, CDs and DVDs, and video games without informing sellers - on a Friday, no less, leaving sellers to cope over the weekend. When they sought answers on the Amazon discussion boards, company moderators said it was part of a test.
Why Unified has taken the dropshipping industry by storm in recent years by giving entrepreneurs access to a set of all-inclusive tools covering sales, marketing, fulfillment, and more. To date, Why Unified is the only dropshipping platform that gives its subscribers access to brand-name products at wholesale prices and competitive two-day shipping.
Tips and Tricks
Amazon is the world’s largest online marketplace, with over 310 million active users. In 2022, nearly 76.6 million of U.S. households were Amazon Prime members, and Amazon controlled nearly 65% of all online retail sales in the country.
An Amazon Store is basically your own custom branded website on Amazon that allows registered brands to showcase their products — without any distractions from competitors’ products or ads. It’ll have the look and feel of a real ecommerce store, with Amazon’s huge audience reach.
In 2022, roughly 2 million businesses worldwide sold on Amazon. This number will likely increase in 2023 and in the future, meaning more and more sellers will be competing with each other. Now you might wonder, with so much competition, how can you get ahead?
9% Whether you are a brand new Amazon seller beginning your research or an experienced Amazon vet, it can be difficult to figure out which product category to focus on. With over 40 categories to choose from, how do you narrow down your research and find the best niche to put all your focus on?
If you've been wanting to start selling on Amazon as a side hustle but aren't sure where to start, the 2023 Complete Amazon Dropshipping and Private Label Master Class Bundle can shed a lot of light on this booming industry. And right now, you can get these 11 courses for just $44.55 — less than $4 a course — for a limited time.
The erroneous fees charged by Amazon and other selling platforms can put sellers and e-commerce platforms at odds with one another and create an ongoing, problematic relationship. However, there are steps that sellers and vendors can take to recover these fees and continue successfully selling online.
Are you an Amazon brand owner looking for a way to exit your business without completely walking away? Tune in to this episode as Paul Miller breaks it all down.
On the podcast we’ll also feature occasional interviews with successful full-time Amazon resellers who will share their stories, how they got started, the obstacles they were able to overcome, and more about their journey to Amazon FBA success.