Consider This from NPR Here's Why it's Hard to Make Money as an Amazon Seller
Oct 11, 2023
Alina Seljuk, NPR's retail correspondent, dives into the challenges faced by Amazon sellers navigating a difficult marketplace. She highlights the struggles of small businesses burdened by rising fees and fierce competition from Amazon itself. A personal account from a seller reveals the journey from success to bankruptcy due to these financial pressures. Seljuk discusses the implications of Amazon's market practices and ongoing legal scrutiny that could reshape the retail landscape for third-party sellers.
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Nicholas Parks's Story
- Nicholas Parks, owner of Snob Foods, initially thrived selling sauces on Amazon starting in 2002.
- Increased fees and competition from Amazon selling the same products cheaper led to his near market exit.
Douglas Mordeza's Amazon Venture
- Douglas Mordeza, a barber, successfully sold excess hair pomade on Amazon, expanding to a $10 million business.
- However, increased fees and competition from Amazon selling similar products cheaper led to bankruptcy.
Amazon's Dual Role
- Amazon's dual role as platform owner and competitor creates inherent tension with its sellers.
- This tension arises from Amazon's control over fees, advertising, and Prime eligibility, alongside direct competition.