Thanks so much to Brett Kraiger for taking the time to present to the Northern Suburbs Business Meetup on the topic of Amaon.com. Brett’s presentation was fascinating - if you couldn't be there here are a few brief notes from the presentation to give you a flavour for what Brett covered:
A bit about Brett
Interest facts about Amazon.com
They are getting into all sorts of stuff:
This is where the opportunity for us outside of the USA, and other Amazon countries, really sits.
Amazon has taken away the BIGGEST hurdle – and that’s how to deliver your products efficiently throughout the USA, without having to handle the logistics yourself.
Even without the sales platform, the warehouse side of things is a game-changer.
You can actually never sell a single item on Amazon itself, but still have a thriving business selling items from your own website and fulfilling from Amazon.
Shopify for example integrates directly with FBA and you don’t have to do anything
Send in – Amazon optimizes locations, tracks everything. Ships and preps everything
There are now even prep services all over America that can handle all the prep for you.
Meeting Amazon’s standards and inspecting prior to sending in.
Even one set up by a Kiwi in Los Angeles which is now a very big business.
Changes in the Sales platform since 2013:
Phase 1 - 3 years ago you could
Phase 2 - But things have gotten a lot more competitive
Phase 3 – way way way more competitive
Phase 4 - AMAZON Bans Free/Discounted giveaways for reviews. About one month ago Amazon totally changed the game
Downsides of working on Amazon:
Amazon Seller Central
1. Difficult to deal with
2. Key focus is to turn your comms around as quick as possible
3. Hard to get straight answers or simple things resolved.
1. Can lose stock
2. All they do is receive, pack and ship. No bundling, no custom.
3. Can do custom on Amazon, but… you have to work out how to fulfil
2. Changing rules
3. Can lose control of the listings
4. Hijackers selling on the same listing
Overnight suspension of accounts with little recourse
1. Can even be as a result of competitive shenanigans
Overcoming the hurdles
All of these things can be overcome/mitigated against, but it’s not a game for the faint-hearted
1. Plan for these things to happen.
2. Have alternates in place