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As someone who sold around a million dollars last year on Amazon through my company, I can add something to this. Amazon's margins on me are great. Amazon colle
by cm2012 14y ago
As someone who sold around a million dollars last year on Amazon through my company, I can add something to this. Amazon's margins on me are great. Amazon collects 20% of every sale we make through them at no effort. At the same time, marketplace revenue is their fastest growing revenue source and is already enormous. We also pay them more to fulfill a certain percent of these orders for us through FBA.
- gregpilling 14y agoso would you switch your efforts to another marketplace if it charged 5% and could bring you $1M per year in sales? Do you feel that 20% of your money to Amazon is a fair cut? if not, what % would be fair?
- cm2012 14y agoWe use a software (ChannelAdvisor) that lets us list on other marketplaces fairly easily. Nothing else comes close to Amazon for volume.
- gregpilling 14y agoI have used ChannelAdvisor. I found it really lacking. It was excellent for pushing out postings, but when your employee makes an error, we had to fix everything by hand. Also we were selling in Ebay Motors, which ChannelAdvisor did not handle as well as the normal Ebay. And then Channel Advisor took another 2% cut on top of Ebay fees, paypal fees. Too much money for not enough benefit was the reason I stopped using it.