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> She forgets that the Amazon marketplace is made up of sellers and the prices aren't controlled by Amazon for a lot of their products. 1. Amazon requires you
by c2h5oh 7y ago
> She forgets that the Amazon marketplace is made up of sellers and the prices aren't controlled by Amazon for a lot of their products.
1. Amazon requires you to sell your products at the price that is not higher than at any other channel you use to sell.
Even if there was a competitor that allowed you to offer a lower price because of lower fees (important on high price, low margin stuff like computers) you can't.
2. Access to many traffic/buyer driving features of Amazon is conditional on the product being offered at the lowest price it was ever sold
3. Buy box algorithm, which is a black box, is known for kicking out sellers who raised their prices.
Sellers are forced to cut deeper and deeper into their margins to account for inflation, new duties, new requirements from Amazon (prepaid return shipping) and Amazon fees (new long term storage fees, being charged a refund fee, even if Amazon shipped your product late from their warehouse).
> How about making a service better than Amazon? No that's impossible?? Well you can bet there are a million people trying right now so there are and will be plenty more alternatives.
How about creating a better mobile carrier or ISP? All US options are inferior and much more expensive than what you'd get in Europe.
Haven't happened because it's next to impossible to compete with big guys without first sinking many billions in infrastructure? who would have guessed..
- cowsandmilk 7y ago> 3. Buy box algorithm, which is a black box, is known for kicking out sellers who raised their prices. Why should you continue to win the buy box if you raise your prices? Another supplier didn’t, so now they win. > 2. Access to many traffic/buyer driving features of Amazon is conditional on the product being offered at the lowest price it was ever sold Amazon has lots of products to choose from to feature. It is no surprise that the best deals they can feature are at the lowest price a product has ever been sold.
- AnssiH 7y ago> 1. Amazon requires you to sell your products at the price that is not higher than at any other channel you use to sell. That is no longer the case, Amazon dropped the price parity requirement on US marketplace in March 2019 (and in EU in 2013). However, I read recently that some sellers have instead started receiving notifications that they have been suppressed from buy box for selling at lower price elsewhere.