Startup business concern

[Deleted member 348872]

I've been looking to team up with someone on a startup and was approached by someone who already has a finished product but was looking for a partner. They dont want any cash put up and asking what i want to do and ive said its clearly marketing that needs doing. My concern is they havent even listed on Amazon which would be my first point of call. When i asked why i was told that they dont really understand amazon. Alarm bells are ringing that someone selling a product via post on their own website hasn't looked at FBA. Am I being overly suspicious that there must be another reason?
Not a great start to a partnership a lack of trust. I was thinking of purchasing some of the product and selling it on my account as a test but no doubt they will see if its successful and could bypass me.

 

[Ozzy]

When i asked why i was told that they dont really understand amazon.

Why does someone not understanding Amazon make you distrust them? Is there something else, other alarm bells, as from the outside just this alone doesn't seem to be worrying, many people can be put off doing something if it appears confusing or complicated.

 

[Mark T Jones]

I've been looking to team up with someone on a startup and was approached by someone who already has a finished product but was looking for a partner. They dont want any cash put up and asking what i want to do and ive said its clearly marketing that needs doing. My concern is they havent even listed on Amazon which would be my first point of call. When i asked why i was told that they dont really understand amazon. Alarm bells are ringing that someone selling a product via post on their own website hasn't looked at FBA. Am I being overly suspicious that there must be another reason?
Not a great start to a partnership a lack of trust. I was thinking of purchasing some of the product and selling it on my account as a test but no doubt they will see if its successful and could bypass me.

As with every 'marketing method' thread, it would require a loan more information & digging to establish what the right/best medium would be (including a few trials).

TBH, I'd be slightly more suspicious at your absolute belief that Amazon is the right channel - but why not enter into a contractual or commission-based deal to trial it on their behalf?

 

[HFE Signs]

List on Amazon if you are happy with them taking most of your profits - it really depends on the scope and potential scale of the product(s)

 

[DontAsk]

Alarm bells are ringing that someone selling a product via post on their own website hasn't looked at FBA.

That's me, and lots of other people.

Why would I want to pay Amazon their commission enemy can do it myself.

Am I being overly suspicious

Yes.

 

[Deleted member 348872]

Why does someone not understanding Amazon make you distrust them? Is there something else, other alarm bells, as from the outside just this alone doesn't seem to be worrying, many people can be put off doing something if it appears confusing or complicated.

You're selling a b2c product. You have a website with a handful of views. Would most people not think of selling on amazon or eBay etc. I cant believe it wouldnt be the first thing to do, Especially given it would be at a lower price point than others on there.

 

[Deleted member 348872]

List on Amazon if you are happy with them taking most of your profits - it really depends on the scope and potential scale of the product(s)

I would list on there as a start but direct buyers back to the website with a discount on repeat orders. At the same time as marketing elsewhere and organically growing. Tik tok shop would be another

 

[Deleted member 348872]

That's me, and lots of other people.

Why would I want to pay Amazon their commission enemy can do it myself.


Yes.

Because they have the traffic and shop window for instant sales. Growing the website will take time

 

[DontAsk]

You're selling a b2c product. You have a website with a handful of views. Would most people not think of selling on amazon or eBay etc.

They might think of it. Doesn't mean they will do it.

Sort the website out.

I cant believe it wouldnt be the first thing to do,

Why?

Especially given it would be at a lower price point than others on there.

For how long? You risk being in a race to the bottom.

I would list on there as a start but direct buyers back to the website with a discount on repeat orders. At the same time as marketing elsewhere and organically growing. Tik tok shop would be another

Eating into your profit margin. Might as well stick to paying Amazon in that case.

Because they have the traffic and shop window for instant sales.

If you can make it to the top of the list. You need to be noticed, just like your website needs to be noticed.

Growing the website will take time

It's called marketing.

You don't just list things on Amazon and become a millionaire overnight.

If you think this is going to be a real money earner then don't set your prices so low, just to compete on Amazon, that your profit disappears when you have to become VAT registered.

Have you sold on Amazon before?

 

[Socio South West]

.... My concern is they havent even listed on Amazon which would be my first point of call. When i asked why i was told that they dont really understand amazon. Alarm bells are ringing that someone selling a product via post on their own website hasn't looked at FBA. Am I being overly suspicious that there must be another reason?....

I have been trying to understand Amazon for about 8 years. The terminology, systems and methodology necessary for a small business to market through Amazon is thoroughly confusing and best left to Amazon specialists in my opinion.

I actually think you are being very narrow minded in your approach to the capability of your potential partner, and they would be right to be as suspicious of you as you are of them.

 

[fisicx]

Because they have the traffic and shop window for instant sales. Growing the website will take time

Not necessarily. Depending on your marketing skills you could be selling things tomorrow without any of the faff of Amazon FBA or whatever.

A good website with the right promotion could get money in the bank tomorrow.

 

[Mister B]

I would list on there as a start but direct buyers back to the website with a discount on repeat orders.

And straight away you're contravening one of rules laid down by Amazon, for which they may well boot you off.

There needs to be a proper marketing plan in place whereby listing on Amazon can be done in tandem with developing their own site.

People perceive Amazon to be the catch all solution to becoming a millionaire, but as others have alluded to, it's not quite that easy.

It may be harder to get independent sales going, but in the long term, it's far, far more beneficial.

 

[AmazonGeek]

List on Amazon if you are happy with them taking most of your profits - it really depends on the scope and potential scale of the product(s)

They take 15% for most products and for that you get enormous exposure - bigger than any other website. The alternative is to try and get that elsewhere but you would have to pay for that, so it is as broad as it is long.

Amazon isn't perfect for everyone but for the right product it can be stupendous so ignore it at your peril. I have a couple of young guys (still in their FT jobs, although probably not for much longer) that started 2 years ago and one of their products sells 12,000 units per month @ £7.99 and costs around 60p to import. Over £1m with 1 listing.

 

[AmazonGeek]

Why would I want to pay Amazon their commission enemy can do it myself.

See reply above. The commission is your marketing budget to get seen by millions of people. If you don't pay it to Amazon you will pay for exposure in one way or another somewhere else

 

[AmazonGeek]

For how long? You risk being in a race to the bottom.

A common misconception. This only applies if you are selling other people's products, in which case you can only add your offer to the existing listing and compete against all the other offers, driving the price down (which of course is good for the customer but not great for the sellers who are battering each other to death!)

But if you have your own product/trademark/brand it is a different story, You enrol the brand in the registry and that protects you from unauthorised offers.

Now, if you just have a me-too copycat product then you will struggle. But if you have a good product with some differentiation, then it can be epic (see reply 2 above)

 

[AmazonGeek]

I would list on there as a start but direct buyers back to the website with a discount on repeat orders. At the same time as marketing elsewhere and organically growing. Tik tok shop would be another

Eating into your profit margin. Might as well stick to paying Amazon in that case.

Completely disagree. Completely valid tactic to try and direct people back to your website. Amazon charges 15% for most categories so give them a 10% discount and you are still ahead. If they are small products you can even have Amazon fulfil your website orders automatically (as you can for eBay) so all your stock is in one place. It costs a bit more but means you don't need staff, warehousing, etc for your website orders.

Subscribe and save is a great way of encouraging repeat orders and if/when you want to sell the business, they add tremendous value. The first 5% of the discount comes from Amazon and you can add what you want on top of that so if your margins are tight, leave it at 5%. If you can encourage a good customer LTV then it also means you can put a bit more into acquiring the customer in the first place.

And TikTok can be amazing too for the right products. Again, you can have orders fulfilled by FBA so you keep everything in one place.

 

[AmazonGeek]

I have been trying to understand Amazon for about 8 years. The terminology, systems and methodology necessary for a small business to market through Amazon is thoroughly confusing and best left to Amazon specialists in my opinion.

Yes, very complicated but done right it is amazing. How else can you scale a business internationally without any staff, warehousing or language skills? I have clients that sell in multiple countries ad compete on a level footing with sellers in those countries (so a customer in Italy finds their listing on amazon.it and can get it next day because it is already at the FC down the road).

With the right product (which is vital), you can literally build an international business from your bedroom! Amazon does all the heavy lifting and deals with 99% of the customer service as part of the FBA fee. I sell right across Europe and the last email I had to answer was almost 6 months ago!

It isn't perfect and the seller support is diabolical and getting worse every month. But you tell me where else you can scale like this with almost no risk...

 

[fisicx]

That maybe so @AmazonGeek but we don't know what they are selling and to whom. For all we know it could be hand made birdboxes with limited production.

 

[AmazonGeek]

And straight away you're contravening one of rules laid down by Amazon, for which they may well boot you off.

Not true. You can't direct them off Amazon from the listing (so no websites, phone numbers, etc) and you can't market to them directly (since the real email address is swapped for an Amazon one). But there is nothing wrong with including something with the product giving them a reason to be on your database.

All my products come with a VIP card. Customers scan the QR code on the card to get some nice free content and to be added to our VIP list for future product launches, etc. My clients do something similar. If you are selling a cooking utensil for example then have a nice PDF designed with a load of recipes and cooking tips for them to download.

You won't get them all but you will get a % of them and in the process, you get their email address. I have thousands now and there is a value to them.

 

[AmazonGeek]

That maybe so @AmazonGeek but we don't know what they are selling and to whom. For all we know it could be hand made birdboxes with limited production.

Agreed - it all depends on the product. But all things equal, if you are looking to scale an online business, Amazon can't be ignored.

 

[Mark T Jones]

Amazon isn't perfect for everyone but for the right product it can be stupendous

This is the crux of the whole thing - and of pretty much any post regarding the 'best' route to market.

ON THE INFORMATION GIVEN nobody can say whether the owner is being unreasonable for ignoring Amazon, or the OP is being unreasonable for swearing by it.

On the law of averages, they are both being a bit unreasonable for not talking/thinking it through from grass roots level rather than creating a binary debate.

 

[Paul Kelly ICHYB]

The commission is your marketing budget

This is what people do not generally get!!!!!

 

[ethical PR]

I've been looking to team up with someone on a startup and was approached by someone who already has a finished product but was looking for a partner. They dont want any cash put up and asking what i want to do and ive said its clearly marketing that needs doing. My concern is they havent even listed on Amazon which would be my first point of call. When i asked why i was told that they dont really understand amazon. Alarm bells are ringing that someone selling a product via post on their own website hasn't looked at FBA. Am I being overly suspicious that there must be another reason?
Not a great start to a partnership a lack of trust. I was thinking of purchasing some of the product and selling it on my account as a test but no doubt they will see if its successful and could bypass me.

I would be suspicious of someone who says they want to do marketing but doesn't seem to understand the marketing process starts by doing your market research to identify best channels to use.

 

[DoolallyTap]

I have started, built and sold several micro on line small businesses but never got involved with Amazon, they may steal your idea, take huge fees and not be the best route to market.
you said - ive said its clearly marketing that needs doing, if this is your area of expertise, you join up and sort it out.
You said - They dont want any cash put up, - presumably you want a salary?
You said - team up with someone on a startup - what does this mean? become a partner or a director in a Ltd company
So many holes, so much more information needed.

 

[japancool]

You're selling a b2c product. You have a website with a handful of views. Would most people not think of selling on amazon or eBay etc. I cant believe it wouldnt be the first thing to do, Especially given it would be at a lower price point than others on there.

So your marketing strategy entirely consists of competing on price.

If I were him, I'd walk away now.

 

[AmazonGeek]

Amazon, they may steal your idea, take huge fees and not be the best route to market.

A common misunderstanding. Provided you have a brand (£170) and are on the brand registry (free) then no one can hijack your listing. Plus you can add extra protection with patents if it is truly a new idea.

If you create a listing without this protection then anyone can find your factory (extremely easy), order the same white label product and add their offer to the listing you have created. In fact they must do it this way because of the way the catalogue works. If they created a duplicate listing for the same product they would be breaking the rules.

Huge fees? Again, misunderstood. You pay 15% for the highest traffic of any website. You could create your own website but then you need the traffic - which costs money, so it is as broad as it is long.

Best route? Not for everything. But hard to ignore for most products.