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This can be true and still be not so great at the same time. What any company like Amazon tries to do is capture revenue, typically by taking it away from someo
by dwc 9y ago
This can be true and still be not so great at the same time. What any company like Amazon tries to do is capture revenue, typically by taking it away from someone else rather than create something new.
In the short term that can mean a boon for small business as large competitors to Amazon are undermined. In fact, Amazon uses small sellers to do the undermining. Once everyone in a market segment essentially works for Amazon then they are free to tighten down the screws and extract more profits.
- dusing 9y agoIn my experience when we brought our small (10yr old) brand to Amazon prime it doubled our revenue in the first year. Albeit at a lower margin, but still higher that wholesale. The customer crossover is surprisingly minimal, so it is not stealing from our traditional online business. I know this through extensive promotions on our direct website that do not seem to sway demand on amazon.com for the same thing at a much higher price.
- dwc 9y agoYes, this is true. I have bought things on Amazon from small sellers that were difficult or impossible to find otherwise, or that were only available on a custom site where I was hesitant to give my payment info.
- sah2ed 9y agoWait, are those products listed at higher prices on Amazon or your website? If I can get an item cheaper from the seller directly, assuming paying them securely is not a problem and shipping costs stay constant, of course I'll switch to buying from the seller's website directly. Unless if the seller's website is harder to use or their business/domain is name not that memorable/trustworthy.