Those fees are just reaping the reward of years (or decades) of investment in building customer trust and traffic through their platform. Still a sizeable fee but merchants only pay (that fee) if they sell, so incentives are aligned. 2/2
To all the people who think Amazon doesn't make money, do you see this $580,000? That is the cost of having your product on Amazon's website. Not storage. Not fulfillment. Not shipping. Not advertising. Just the cost of having your product on Amazon's website.pic.twitter.com/sm376eACNk
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Basically, I agree with you, but with two caveats: 1. Amazon charges significantly more for fulfillment that is not used for their orders, so it is not practical. 2. More importantly, Amazon's fee is too high at 15% of the price. And they charge shipping. This hurts consumers.
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Isn't FBA when you store inventory in their warehouses? That's different just being listed on the website as a third party seller.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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Would rephrase: that's the cost of selling to Amazon customers (not your customers), the "free" traffic, borrowing their brand & trust customers have. If you can get traffic (that converts more cheaply) elsewhere, by all means you should - can still use AMZN's fulfillment. 1/2
Thanks. Twitter will use this to make your timeline better. UndoUndo
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