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- Jun 3, 2015
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I have recently decided to import and sell product, I felt that using Amazon initially would be my route to the fastlane. As even though I know using the online giant to sell, means that I'm giving up control, which is essential in any fastlane business. I felt that I could cruise along for a few months whilst I got everything else in place.
However I am being reminded early on, what it means to give up control, I am currently sitting here waiting for a support email to be replied (phone back is down), so that I can send a shipment which I know will take 2 weeks for Amazon to process.
So for any of you new guys and gals out there, here is a little set of things which you will have no control over whilst selling on Amazon.
1. Costs
In the 3 months or so since I have joined, Amazon have changed their selling and warehouse fees, they have also changed the rules as to how many products a new seller can have stored with them at any one time.
At the moment this doesn't effect me, however I can easily envisage several scenarios in which it would.
2. Rules & Regs
Amazon is essentially AI software; so therefore when you sell certain items, even if you have permission to sell those items. The Amazon software, may well flag it up as restricted and either restrict that item, or your whole account.
I read a post not too long ago about a guy who had permission from the NFL, via a reseller to sell vintage NFL pins and memorabilia. Which had been going fine, however he then stuck an old 49ers badge on there, and his account was frozen.
If my memory serves me correctly; it took him something like 6 weeks to sort out. Imagine that; imagine having tens of thousands of dollars of stock being sold, and then having your account frozen, and facing weeks of frustrating emails trying to get your store back online.
All the while, losing money...
3. Terms & Conditions
When you sign up, you sign up to Amazon's Ts & Cs, and in all contracts of this nature, there is always a clause which says they can end your account with no warning and no explanation, if they so feel. Whilst this may never happen, why start a business with such a sword of Damocles hanging over you?
4. Technical Issues/Customer Support
If something goes wrong with your own website, you call your hosting company or any service providers that are supplying services pertaining to your site. With Amazon, you are at the mercy of their customer support, which may sort you out in minutes, or days, you have no control over which.
5. Inventory Processing
There will always be issues with processing inventory once you start moving a lot of product, and maybe even before. However, by using your own fulfillment companies and warehouses, you will be right next to the problem. Instead of having to deal with it via the filter of Amazon support.
You could of course sell on Amazon and keep this bit of control by not using FBA, however by doing that you are missing out on an extremely large, and ever growing percentage of customers who only buy from merchants who use FBA.
Conclusion:
Ultimately being on Amazon conveys huge benefits, as you can gain instant visibility in the largest shop in the world. However that comes with some serious strings attached.
Moving forwards, in an ideal world, I think I want between 10-15% of my sales going through Amazon, which I think will surf the line of producing enough sales to be worth it, and not having so many that they essentially have major control over the prosperity of my business.
There are people on FLF making millions of dollars from Amazon, just remember kids, they have all (well the smart ones), made sure that it is not their main income and use it as a tool to increase sales. Rather than one which dictates them.
Rant over...
Peace.
However I am being reminded early on, what it means to give up control, I am currently sitting here waiting for a support email to be replied (phone back is down), so that I can send a shipment which I know will take 2 weeks for Amazon to process.
So for any of you new guys and gals out there, here is a little set of things which you will have no control over whilst selling on Amazon.
1. Costs
In the 3 months or so since I have joined, Amazon have changed their selling and warehouse fees, they have also changed the rules as to how many products a new seller can have stored with them at any one time.
At the moment this doesn't effect me, however I can easily envisage several scenarios in which it would.
2. Rules & Regs
Amazon is essentially AI software; so therefore when you sell certain items, even if you have permission to sell those items. The Amazon software, may well flag it up as restricted and either restrict that item, or your whole account.
I read a post not too long ago about a guy who had permission from the NFL, via a reseller to sell vintage NFL pins and memorabilia. Which had been going fine, however he then stuck an old 49ers badge on there, and his account was frozen.
If my memory serves me correctly; it took him something like 6 weeks to sort out. Imagine that; imagine having tens of thousands of dollars of stock being sold, and then having your account frozen, and facing weeks of frustrating emails trying to get your store back online.
All the while, losing money...
3. Terms & Conditions
When you sign up, you sign up to Amazon's Ts & Cs, and in all contracts of this nature, there is always a clause which says they can end your account with no warning and no explanation, if they so feel. Whilst this may never happen, why start a business with such a sword of Damocles hanging over you?
4. Technical Issues/Customer Support
If something goes wrong with your own website, you call your hosting company or any service providers that are supplying services pertaining to your site. With Amazon, you are at the mercy of their customer support, which may sort you out in minutes, or days, you have no control over which.
5. Inventory Processing
There will always be issues with processing inventory once you start moving a lot of product, and maybe even before. However, by using your own fulfillment companies and warehouses, you will be right next to the problem. Instead of having to deal with it via the filter of Amazon support.
You could of course sell on Amazon and keep this bit of control by not using FBA, however by doing that you are missing out on an extremely large, and ever growing percentage of customers who only buy from merchants who use FBA.
Conclusion:
Ultimately being on Amazon conveys huge benefits, as you can gain instant visibility in the largest shop in the world. However that comes with some serious strings attached.
Moving forwards, in an ideal world, I think I want between 10-15% of my sales going through Amazon, which I think will surf the line of producing enough sales to be worth it, and not having so many that they essentially have major control over the prosperity of my business.
There are people on FLF making millions of dollars from Amazon, just remember kids, they have all (well the smart ones), made sure that it is not their main income and use it as a tool to increase sales. Rather than one which dictates them.
Rant over...
Peace.
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