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> Being on Amazon's Marketplace (the largest in the world), every sale gives Amazon all the statistics needed to pick only guaranteed profitable products. No,
by toasterlovin 7y ago
> Being on Amazon's Marketplace (the largest in the world), every sale gives Amazon all the statistics needed to pick only guaranteed profitable products.
No, it does not. They are missing the most important piece of information: Cost of Goods Sold. They also don't know where you sourced the product. Or which features are important to customers and which are not.
> Then Amazon requires the seller to produce invoices showing purchase of the items, usually with some sort of vague threat of suspending your account if they can't "verify the authenticity" of your products.
This is only for trademarked products where the trademark owner has registered with Amazon. And the purpose is to protect consumers: by requiring proof that a product has been sourced from an authorize reseller, rather than some factory making knock offs or somebody buying stolen goods.
> So they proceed to purchase the product, sell it at a loss until you can't hang anymore, and now Amazon is the sole source for the product.
The only sellers this alleged strategy would harm are sellers who are selling a trademarked brand for which they are not authorized. But why should those sellers even be on Amazon? And how would this be any different than Amazon buying these products directly from the manufacturer and being the only seller on their website? In other words, they don't need to do what you're alleging. They are free to just claim certain products as 1st party only.
Separately:
I sell speaker wire on Amazon. I compete against their Amazon Basics brand. I have a viable business that is growing. Because I know more about this market and its weird little crevices than Amazon ever will.
- Alupis 7y ago> This is only for trademarked products where the trademark owner has registered with Amazon I can tell you first hand, this is not true. This is the "official party line", as it were, but not true in practice. Particularly if you FBA anything. Get enough returns of a product and Amazon will freeze the listing until you provide an invoice - FBA and FBM. For us, "enough" returns was 4 on a single ASIN in a week, out of the thousands we carry. It's a totally random system. > I have a viable business that is growing I wish you best of luck! In our case, we're an ecommerce company operating our own warehouse and multiple sales channels including our own websites. Amazon is but one of those channels, and we don't rely on it for company livelihood. I would be terrified to live solely off Amazon, knowing the rug can be yanked out at any time for any reason and with zero recourse. You can do everything right and still get canned.