Are you planning to sell at the world’s largest eCommerce website with millions of active shoppers? But there are also risks to consider when selling on Amazon. Here are 7 reasons not to sell on Amazon.
- Competition is aggressive: There are millions of sellers in Amazon platform and they do not like to have more competition with new sellers. They can offer lower price to finish your business or they may even play some dirty tricks to suspend your seller account.
- Amazon payouts are every 2 weeks: Unlike other eCommerce sites like eBay, where payments are generally instant, Amazon pays sellers every two weeks(14 Days). And then, it can take 2 to 5 business days for funds to appear in your bank account. Also if your account suspends in this period, you will not receive your funds at all.
- No-Profit Sells: You may end up selling with no profit after adding Amazon fees, shipping, return costs and other costs.
- Product Returns: Unfortunately there are lots of Amazon shoppers love to get free products and Amazon Sellers that want to damage your business by buying and returning your products so they can eliminate one more competitor. Be prepared to take a loss with some new inventory. If you get too many returns Amazon will suspend your account.
- Amazon has all the power: Amazon can revoke selling privileges at any time and suspend your account without any notice.
- Pricing:If your product price is not in Amazon’s pricing range, your listing will be blocked by Amazon robot and will not be published until you fix the price by lowering it to the Amazon’s price range.
- Limited Listing Options: Even you choose to sell with a professional account on Amazon, the products you are allowed to sell very limited. For example, if you want to sell a X Brand product, first you need to contact to Amazon and apply for an authorization to sell it. The process is very time consuming. Also Amazon can reject you even you are an authorized dealer for that brand.
You need to evaluate your sales criteria and fully understand the costs of doing business to determine if selling on Amazon is a good fit or not.
