Suppliers hate Amazon

[oliverstoychest]

So we are pondering if to sell on Amazon however one of the questions we always get asked by new suppliers is "Do you sell on Amazon?". We say no for now and they always reply "good because we can't do business if you do". I am stuck between selling on Amazon and crossing some suppliers out or do I just avoid selling on Amazon altogether ...

 

[ServWise]

Don't do it. please don't do it.

 

[kulture]

Have you considered asking your suppliers why?

 

[oliverstoychest]

Have you considered asking your suppliers why?

We have and they all say the same.... because other sellers bring the price so low it devalues the product.

 

[antropy]

I am stuck between selling on Amazon and crossing some suppliers out or do I just avoid selling on Amazon altogether ...

Surely they mean "will you sell their products on Amazon"? Surely they don't care if you sell other suppliers' products on Amazon?

Paul.

 

[kulture]

We have and they all say the same.... because other sellers bring the price so low it devalues the product.

Therein lies the basic problem. Where are the other sellers getting the product? If they are selling the product that you want to sell and are doing very cheaply on Amazon, how do you expect to compete?

If you sell an Amazon you not only run the risk of the supplier refusing to continue your supply, but you are probably being forced to sell at low margins. The other long term problem being what is stopping your SUPPLIER missing out the middle man (i.e. you) and selling direct on Amazon? Perhaps using FBA.

 

[SolomonD]

The aim of any business is to profit maximise, and you can achieve this by lowering costs or raising revenue. Amazon in many respects works as while it may increase sales in the long term it makes it difficult to differentiate your product and offer more than just the product. This is why brands like Peleton don't sell on Amazon.

We used to sell on Amazon and did very well out of it, but as soon as we did, it was swamped with cheaper Chinese sellers. It was just impossible to maintain our sales against ever changing cheaper rivals. That and we requested and paid for returns of some of our stock, which was returned damaged and in a unsellable state. Amazon dragged this out for over 18 months before refusing compensation. I can see why some companies have issues with them.