7 {{ upvoteCount | shortNum }}
7 {{ upvoteCount | shortNum }}

Is Amazon a threat to your eCommerce website? What are you doing to protect yourself?

by culpetm
6 replies
  • ECOMMERCE
    • |
Starting and maintaining an online store takes an enormous amount of time, money, and work. What are you doing to ensure Amazon doesn't put you out of business someday?

Are you selling products that Amazon will probably never sell?

Are you selling personalized products that Amazon can't really compete with?

Do you have the "If you can't beat 'em, join 'em" philosophy? i.e., you ALSO sell your products on Amazon?
#amazon #ecommerce #protect #threat #website
Avatar of Unregistered
  • Profile picture of the author dave_hermansen
    In our large ticket eCommerce training course, seeing what is available on Amazon and at what price is a critical part of niche selection. You never want to pick a niche where Amazon is going to have the same or better prices than you.

    Fortunately, Amazon does not always have great prices on brand name products these days - especially ones with MAP pricing. People have to mark them up too much in order to pay the exorbitant Amazon commissions.

    The other thing we tell people to look at is the diversity of what Amazon offers. With most product niches, they only have a few models from a small number of brands - many of which are obscure brands.

    Bottom Line: If you can beat Amazon prices for the same exact products OR if you can offer a more diverse product selection, Amazon poses very little threat.

    Oh ... and if you are selling your own private label products and have a healthy markup of 50% or more, by all means, "join 'em".
    Signature
    BizSellers.com - The #1 place to buy & sell websites!
    We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
    {{ DiscussionBoard.errors[11614157].message }}
    • Profile picture of the author Jeffery
      Originally Posted by dave_hermansen View Post

      In our large ticket eCommerce training course, seeing what is available on Amazon and at what price is a critical part of niche selection. You never want to pick a niche where Amazon is going to have the same or better prices than you.

      Fortunately, Amazon does not always have great prices on brand name products these days - especially ones with MAP pricing. People have to mark them up too much in order to pay the exorbitant Amazon commissions.

      The other thing we tell people to look at is the diversity of what Amazon offers. With most product niches, they only have a few models from a small number of brands - many of which are obscure brands.

      Bottom Line: If you can beat Amazon prices for the same exact products OR if you can offer a more diverse product selection, Amazon poses very little threat.

      Oh ... and if you are selling your own private label products and have a healthy markup of 50% or more, by all means, "join 'em".
      ^ Gold Nuggets ^
      Signature
      In the minute it took me to write this post.. someone died of Covid 19. RIP.
      {{ DiscussionBoard.errors[11614163].message }}
    • Profile picture of the author Jeffery
      Originally Posted by dave_hermansen View Post

      In our large ticket eCommerce training course, seeing what is available on Amazon and at what price is a critical part of niche selection. You never want to pick a niche where Amazon is going to have the same or better prices than you.

      Fortunately, Amazon does not always have great prices on brand name products these days - especially ones with MAP pricing. People have to mark them up too much in order to pay the exorbitant Amazon commissions.

      The other thing we tell people to look at is the diversity of what Amazon offers. With most product niches, they only have a few models from a small number of brands - many of which are obscure brands.

      Bottom Line: If you can beat Amazon prices for the same exact products OR if you can offer a more diverse product selection, Amazon poses very little threat.

      Oh ... and if you are selling your own private label products and have a healthy markup of 50% or more, by all means, "join 'em".
      We do essentially the same at three of our local flea markets. Example: when we sell high-ticket lawn mowers. Instead of only one brand we sell four different brands and all four consist of a minimal of two different lawn mowers to include a loss leader.
      Signature
      In the minute it took me to write this post.. someone died of Covid 19. RIP.
      {{ DiscussionBoard.errors[11614165].message }}
    • Profile picture of the author AffiliateMonetization
      Thanks for your detailed response. I'm curious though, where do you find products to sell that are cheaper than what is offered on Amazon?
      {{ DiscussionBoard.errors[11614241].message }}
      • Profile picture of the author dave_hermansen
        Originally Posted by AffiliateMonetization View Post

        Thanks for your detailed response. I'm curious though, where do you find products to sell that are cheaper than what is offered on Amazon?
        Very little of what Amazon offers is actually stocked by Amazon. Most of it is dropshipped or supplied by third party providers. Because of that, they have no wholesale pricing leverage over you. In fact, in many instances where they are supplied by third party providers, the prices are higher than they should be because that third party provider is having to mark products up in order to cover the Amazon commissions.

        We always start at the top when looking for suppliers. We call the actual brands. If they won't dropship, we ask if they can give us the names of their distributors or very large buyers who might. Then we contact them. We keep working down the supply chain from there.

        With most of our websites, we are dropshipping directly from the manufacturer. In some cases, where the brand does not sell to retailers and only sells to distributors, we are dropshipping from the distributors.
        Signature
        BizSellers.com - The #1 place to buy & sell websites!
        We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
        {{ DiscussionBoard.errors[11614358].message }}
    • Profile picture of the author culpetm
      Originally Posted by dave_hermansen View Post

      In our large ticket eCommerce training course, seeing what is available on Amazon and at what price is a critical part of niche selection. You never want to pick a niche where Amazon is going to have the same or better prices than you.

      Fortunately, Amazon does not always have great prices on brand name products these days - especially ones with MAP pricing. People have to mark them up too much in order to pay the exorbitant Amazon commissions.

      The other thing we tell people to look at is the diversity of what Amazon offers. With most product niches, they only have a few models from a small number of brands - many of which are obscure brands.

      Bottom Line: If you can beat Amazon prices for the same exact products OR if you can offer a more diverse product selection, Amazon poses very little threat.

      Oh ... and if you are selling your own private label products and have a healthy markup of 50% or more, by all means, "join 'em".
      Fantastic insight. Thank you.
      {{ DiscussionBoard.errors[11614287].message }}
Avatar of Unregistered

Trending Topics