The Livelihood Podcast

EP#41 - Don't Sell On Amazon FBA! Listen To This Before Starting an Amazon Business...

08.27.2020 - By Entrepreneur Luke Emery & Product Designer Alex PeetPlay

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This episode is a rant about the problems with using Amazon FBA as your business model. Alex and Luke have both been selling on Amazon for a few years, and like any seasoned Amazon sellers they have encountered the countless issues that Amazon sellers face.

If you ask any Amazon seller (who's not selling a course), they could tell you a handful of times using Amazon FBA has been a frustrating experience. Alex and Luke breakdown the worst things that have happened to then over the years.

At the end they talk about why they do sell on Amazon....

The reasons why you shouldn't sell on Amazon FBA -

They charge you higher fees than any other platform and aren’t that clear with when you get charged.Organic Ranking - You are at the mercy of the algorithm. You are competing with hundreds of other sellers for the top 10 positions, and the competition is fierce.It’s sold as a get rich quick scheme and not a proper business model. In reality you have to invest thousands or tens of thousands into stock before even knowing if a product will be successfulExpectations vs reality of creating products and packaging is difficult. Alex is a seasoned product designer with over 10 years experience, and even he still encounters issues.You can’t necessarily control the review or sentiment created by customers. The review average seems arbitrary that’s set by amazon. A bad review can destroy a products sales.The competition can change very quickly and your brand positioning is unstable.Your listing can get hijacked by fraudsters.Amazon customer service for sellers is one of the worst customer services for businesses.Amazon has a number of programs for sellers, and not all of them work how you expect them to, and it's hard to have a direct conversation with anyone working in those departments

 

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