MY AMAZON BUSINESS EXPERIENCE
I have heard a lot of things about selling on Amazon. I have some business with Amazon, however, I am not one of the merchants who makes business selling on Amazon. I felt like I am missing something. I mean I think that we should use 100% of the opportunities given to us. Amazon is the largest online trade center in the world. It is bigger than eBay and we can confidently say that Amazon is more popular than eBay. Thus, if you lose your Amazon business, you lose one of the best online income sources. That was my thought till I tried making business on Amazon.
Yesterday, I opened a professional seller account on Amazon. I decided to merely test the market. I signed to Doba’s free trial and started looking for some items to list on Amazon. Prices on Doba are really good. For example, I found brand new women trousers by the wholesale price of 8 $. Recommended Retail Price was 39 $. It seems to be very good. Wholesalers on Doba sell their items by tremendously low wholesale prices. I thought that it is a good idea to buy products for 8 $ and sell them on Amazon for 30 $. Thus, I listed the item on Amazon. Amazon lets you see prices of the same items listed on Amazon. I looked them up and realized that the most expensive among them costs 12 $. This competition on Amazon does not let you set your own prices. People won’t buy from you if your prices are higher than the prices of other Amazon merchants. This puts you in the position when you are limited to set your desired price. That was my first frustration. I made a conclusion that I won’t be able to make a good profit selling on Amazon. However, I did not give up and decided to go further. Even if you earn 1 $ from every sale, 100 sales will make you 100 $. It is not a bad idea when you are aware of the huge traffic Amazon gets every day. List ten different trousers, and 1000 sales will give you 1000 $. This is the way people get rich. Patience is required in any type of business. Hence, I decided to continue. When my listing was finished and my product was published on Amazon, I looked at my seller fees. My products wholesale price was 8 $ on Doba. Plus 2 $ shipping, and Amazon takes 2 $ for their referral fees. Thus, I realized that I won’t be able to make any profit. I did not know about Amazon’s referral fees. Amazon takes at least 15 % of the total cost of your item as a referral fee. If you sell your item for 60 $, Amazon will take 9 $. Keep in mind that Amazon marketplace is extremely competitive. There are thousands of professional sellers on Amazon who will offer people the best prices that exist in the online market.
As soon as I realized these disadvantages, I deleted all my listings on Amazon and decided not to deal with it again. However, it was a good experience for me. Amazon is not a good place to sell your products. Ebay is much better. I was buying items for 15 $ and selling them for 60 $ on eBay. Ebay fees are not as high as Amazon’s. These 60 $ were giving me 58 $ of net profit. Ebay is the best trade market on the Internet.
This was my first and the last experience of selling on Amazon. I have made some researches on the Internet and I found out that there are loads of people who think making business on Amazon to be impossible. With these huge referral fees, plus 39 $ for professional seller account subscription, plus extremely high competition between Amazon merchants, making trade business on Amazon becomes tremendously sophisticated. I do not recommend anyone to sell your products on Amazon. Ebay is a better alternative for your trade business.