Selling on Amazon has Officially Become a Loss
Not that anyone at Amazon will care in the least, but I need to express this somewhere anyway:
Not only can I no longer turn a profit, I am taking a loss selling product on Amazon. When factoring my product cost and inbound transportation it's a sizable loss. I am, in effect giving Amazon product to sell AND paying them to do it.
I have run Amazon accounts for several successful companies over the years, and I am truly baffled by the direction Amazon is taking with fees.
Unless they have decided to become a full logistics based business, and reduce sales on the marketplace, this makes less than zero sense. Even if that were the case why would you put your potential customers out of business?
The only reason to put up with Amazon's ridiculousness was because you still made money with them. When that stops, people won't put up with all the complications. Look no further than eBay for an example. No one could imagine eBay becoming insignificant... yet it happened.
Selling on Amazon has Officially Become a Loss
Not that anyone at Amazon will care in the least, but I need to express this somewhere anyway:
Not only can I no longer turn a profit, I am taking a loss selling product on Amazon. When factoring my product cost and inbound transportation it's a sizable loss. I am, in effect giving Amazon product to sell AND paying them to do it.
I have run Amazon accounts for several successful companies over the years, and I am truly baffled by the direction Amazon is taking with fees.
Unless they have decided to become a full logistics based business, and reduce sales on the marketplace, this makes less than zero sense. Even if that were the case why would you put your potential customers out of business?
The only reason to put up with Amazon's ridiculousness was because you still made money with them. When that stops, people won't put up with all the complications. Look no further than eBay for an example. No one could imagine eBay becoming insignificant... yet it happened.
159 replies
Seller_mKtFZWHVnpxeX
I ambeginning to understand your frustration!
Seller_QTzEzdPIezjB1
I'm almost at the same point.
Between the shipping inbound charges going up 30% per unit, to other random storage fees..... to allowing all countries to sell on any platform (what is the point of a USA market place, German Market place, China market place? - obviously standards of living are different among the countries, the lower standards will sell for cheaper and lower margins. Just mind blown with this decision)
Some of their changes, have been nothing but corporate greed. It seems they're trying to eliminate any small scale businesses.... which is what made Amazon... Amazon.
For those denying this, open your eyes.
Seller_jvpxdrhdlNEo5
I completely understand your frustration. It's disheartening to see the challenges American sellers face on Amazon, especially with the influx of Chinese sellers undercutting prices and manipulating rankings, reviews, and more... As a fellow American seller, I've experienced similar struggles.
Amazon's shift towards higher fees and a seemingly unfair marketplace environment is concerning. It's becoming increasingly difficult for us to compete and turn a profit when we're up against these odds. The issue isn't just about profits—it's about the fundamental fairness of the marketplace.
I agree that Amazon should prioritize supporting American sellers and addressing the issues caused by aggressive foreign competition. The impact is not just on individual businesses but on the entire economy. It's crucial that our concerns are heard at a higher level, perhaps by policymakers who can ensure a fair playing field for all.
This isn't just about our businesses; it's about the livelihoods of countless American entrepreneurs. I share your frustration and hope that Amazon and policymakers take notice before it's too late...
Seller_kri7DJf6eWIDZ
Amazon has turned into a liquidation marketplace, having taken over selling products what we've been selling and then adding restrictions & fees.
Seller_DTlU4E3YncmVe
Unfortunately what I’ve been seeing and reading, are people that sell items that come from China are the ones having a lot of issues. What I will say is that business 101 tells us to never relay on 1 sales channel, this is essentially what’s hurting sellers, the times of selling small trinkets on Amazon is clearly over, idk if y’all have seen TikTok shop numbers and Temu shop numbers for these small items, those platforms only changer up to 8% max fees, it doesn’t matter the price of the item. Something else I noticed is the shipping cost, TikToks shipping is wayyyyyyy cheaper than any service, example 30lb product we sell shipping is around $25 with our merchant account, sometimes cheaper depending on the box, TikTok has shipping for that same item at a 35% discount from our price.
If we look at things from the business side of things, Amazon makes more money from Chinese sellers than American sellers, and by far I bet they complain less lol. Amazon makes more money from them because they can sell your product at a cheaper price and do way more volume than you can. Essentially Amazon only wants to deal with manufacturers not 2nd and 3rd parties, all we can do is adapt, modify your sales strategies and stop complaining, use that energy to make more money by finding creative solutions to the problems. Complaining takes up a lot of energy, and time
Seller_8IuJpl0AJYjKa
we suspended all listings ( 100% ) on amazon and walmart and back to ebay. not that much traffic but at least we make money with much much less drama from return to atoz to negative feedback .. add to all this you get your money daily while on amazon and Walmart you are held hostage and wait for your paycheck every two weeks.
Seller_YeMCmBy8pjDNv
U 'll make money when Amazon makes money, so stop whining, it's nothing to lose a little
Seller_QMIvrSsdBmeXx
you also need to be on the look out for hidden fees by downloading your transactions report. I ship lots of FBM and one thing I noticed starting the beginning of this year is UPS and USPS shipping carrier surcharges or random audits with fake measurements and weights giving to our packaging. charging outrages fees due to these mistakes. I have spent countless hours disputing these charges but I keep getting generic responses. You will spend hours trying to write up the disputes but they just reply with same copy and paste. Just this last 30 days its been more than $180 in these junk fake fees that I cannot dispute or just a waste of time trying to get that money back.
Seller_reqB29vsrF95n
I agree 100% with what you are saying. I've been trying to grow my small business on Amazon for the last 5 years and it's been a difficult road. There are so many factors that have made it harder than it should be, but Amazon and this new placement fee is a bridge too far. I used to ship a box of 90 units to Amazon and they would charge $5.75 to fulfill the order. Now, my most recent shipment is $40 (90 units) and it's $8.25 to fulfill the same order. I'm trying to keep my cost on Amazon affordable for customers, but they are making it very difficult. Plus, the customer service is laughably terrible. I hope Amazon reads all these comments and starts to care a little bit more about all the sellers who have made their platform what it is today. I doubt it, but I hope.
Seller_08TZq9sOIaGvv
I'm guessing labor and energy costs are pressuring Amazon to pressure us. Raise your prices as high as you can, cut costs, cut labor and if you still aren't profitable, find other items to sell. That's what I'm doing, that's what everyone should be doing to deal with this stagflation environment a'comin.
Seller_RhdbLYBpzig4e
You hit the nail on the head. This is absolutely the direction they are heading. Why now? Is the question I'm asking.
Unless they have decided to become a full logistics based business, and reduce sales on the marketplace, this makes less than zero sense. Even if that were the case why would you put your potential customers out of business?
