An Interesting Read for Amazon Sellers

[B V Marlon]

Further proof that if you just sell product on Amazon, and don't attempt to build a brand and/or sell through other channels, you don't have a business:
Amazon owns a whole collection of secret brands

It looks like part of AZ's future strategy is to boost margins by cutting out middlemen and developing their own tertiary brands.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Walter Hay]

This is not as new as Quartz seem to think, although they have gone to a great amount of effort to find the names of Amazon's brands. For several years I have warned against shipping direct from suppliers to Amazon, because if the product sells well Amazon will have a head start in taking the business away from their unsuspecting sellers.

They will know where to source the product, although they have the resources to find suppliers anyway, and they will know at what price it sells well. They will also have knowledge about faults, large or small, that bring bad reviews or complaints.

My advice to those wanting to sell on Amazon is to ship to an independent fulfillment service and have them prep the goods before forwarding on to Amazon. Margins will consequently be reduced, so sellers need to be sure they have secured the best possible prices. I know from experience that many importers think they have got a great price, simply because they don't know how to get a better price.

Private labeling does help secure a market segment on Amazon, but all sellers should have their own eCommerce store as well. Amazon are strict about how you can advertise to your customers when your goods are shipped out to them, but there is something everyone who uses private labeling can do to bypass that problem:

Incorporate your website address in your labels and on your packaging. Don't include an invitation to visit your site, or you might run foul of the rules. It can also be a great help if your URL is part of the branding on your product.

Walter