Jeff Bezos declared in his report to shareholders that sellers made up 58 percent of the sales on Amazon. That sounds good except Amazon makes 50 cents off every dollar spent online. eBay goes home with six cents for every dollar.
There are a lot of buyers who credit Amazon with the money they have made, and probably would not have come close to what they have made without Amazon or on another site or a brick and mortar store. That puts Amazon in control of $600 billion in online sales and that is triple the pace of overall retail sales. Merchants might be selling more stuff than Amazon. But Amazon takes a bigger bite of each sale. Its share has almost tripled to more than 40 percent in the past few years, merchants say, mostly due to the new cost of advertising. Those who don’t like it have to shrug, sigh and roll with it because no other site comes close to Amazon’s reach.
Several successful sellers, like Boyce, acknowledge that selling products on Amazon has helped him earn a comfortable living. As businesspeople, he and other merchants are wary of regulation. But when Senator Elizabeth Warren made noises about Amazon competing against the sellers. Per Boyce, you should not be able to profit off the hard work of your sellers to beat them. And at the same time admits he makes a good living selling on Amazon.
Amazon has been known to change the rules, without notice and these are things you have to live with. If you are making good money, then you will continue with Amazon and their unwavering policy till lunchtime. If you are kicked off, which can happen in a heartbeat, it takes months to get back on and then it is like presenting your side to the Supreme Court.
“Amazon crushes small companies by copying the goods they sell on the Amazon Marketplace and then selling its own branded version,” Warren said in her proposal to break up Amazon, but all the grocery stores have now developed their own brand against a well-known brand and it sits right there next to the item. So what is the difference?
And then there is Walmart who crushed Rubbermaid. Resin is a major component to the Rubbermaid type product and the price for resin skyrocketed. When Rubbermaid approached Walmart by telling them there would be a price hike in the Rubbermaid product, Walmart refused to pay, and they were Rubbermaid’s largest customer. Hence, Walmart refused to buy a lot of Rubbermaid pieces and then things went downhill from there. Then the company was sold and the equipment was auctioned off to the Japanese and long story short Wooster, Ohio, home of Rubbermaid is no more. So attacking Amazon hardly seems rather a moot point. Take a look at Walmart.
I repeat, the ones who find fault with Amazon are the same ones who wish they had thought of it. All you needed was a garage and a great idea.