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I’ve done over $100,000,000 in Amazon sales. I do 8 figures a quarter.
It is very hard to sell on Amazon and make money.
This chart shows a 100,000 decline in active sellers in 12 months.
Imagine if Meta lost 1/6 advertisers?
Revenue would be destroyed right?
But Amazon is such a perfect market, that these sellers can churn and nothing happens.
Amazon is still a top 3 opportunity in Ecom to make money.
But the platform is working against you.
Every other seller is working against you. The system is working against you.
Being good at Amazon is a life hack.
But the barrier is higher than ever.
My guess?
Before 2028 we lose another 250k sellers.
Sales volume will stay flat.
Means bigger slices for those that can make it.
My community has $15b of yearly sales on Amazon with 800+ members.
These are small businesses. They employ real Americans and support local communities.
They do not have large margins to absorb shocks.
Every year Amazon squeezes them more and supports overseas Chinese sellers instead of local American businesses.
Now Amazon is hitting sellers with even more of a squeeze all back to back:
https://t.co/Xc1IeD5QHd has moved many sellers to DD+7
Meaning funds are held until 7 days after delivery, not simply paid out on the old cadence.
https://t.co/YkUKQvr0Uo just added a 3.5% fuel/logistics surcharge on fulfillment fees.
https://t.co/L9WWJUDkr8 top it off now Amazon Ads charges will be pulled directly from disbursements rather than floating on a credit card.
That combination matters.
Amazon already forces sellers into an environment where ads dominate visibility.
So now the same platform that pressures brands to spend more on ads is also tightening payout timing and pulling more cash out before sellers ever see it.
For a very large business, this is just a minor annoyance. But for a small business making payroll just got 50x harder.
Less cash on hand means:
less inventory
more stockouts
more debt
more strain on small teams
and ultimately a worse customer experience
This is not “supporting small business.”
It is starving the brands that create so much of the value customers come to Amazon for.
@WSJ@business@nytimesbusiness@BusinessInsider@ReutersBiz@CNBC@APBusiness
If you’re covering Amazon, local communities hit by a hard economy and large companies trying to squeeze hardworking Americans hit me up.
@michaelpatron0@AmazonASGTG Yep I have to keep my accounts in CA MX and BR in vacation mode because of this issue. It’s an issue with remote fulfillment not noticing these SKU’s are MFN.
Amazon - you guys need to fix this issue where you take our FBA SKUs and make them MFN. This has happened to me at least 10 times over the last year for Amazon CA,MX and BR and you then ding our account because we don't see the shipment. This is goofy.
My Walmart seller account was suddenly terminated with no option to appeal, and support channels aren’t working. I need help connecting with someone who can actually resolve this. Any assistance appreciated! @WalmartSellers@DougMcMillon@WalmartInc@Walmart
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The craziest real life story you will ever read as an Amazon seller happening to us right now. Amazon Seller Central Hacked and no clear resolution after 7 days! @dharmeshmehta@amznsellerhelp@AmazonHelp
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The Amazon counterfeit product scandal is way worse than I thought. It’s massive. I wouldn’t hold the stock until it gets sorted out.
100% of the Dilbert calendars on Amazon are fake. I don’t sell the calendar on Amazon. And Amazon has an (intentionally) broken system for reporting the fakes. The fakes come faster than the reporting system.
I’m hearing incredible stories of Amazon abusing American small business owners by essentially being accomplices in stealing their work and giving it to China. The system is so robust that ANY successful American product China can copy gets knocked off.
More on that story today.
If we want to end knockoffs , we should require any products from china (to start), to:
1. Register as an importer of products and post a minimum of 25k bond against potential future infringements that scales as potential sales increase
2. Have to register and display any product they want to sell online, on a .gov website (similar to patents ) for 90 days. Allowing IP holders to review for infringement
3. Pay 5k per product to cover cost of the above
4. If challenged, like the DMCA, prove they are not infringing. The onus is on them. Not the American company, which today bears all the risk and cost burden to prove a knock off should be deleted from Amazon or wherever
5. Automate the system, so once approved a number is assigned to the product (like patents )
6. Fine any retailer who sells an imported product a lot of money.
7. Consider making the 5k per product fee, and annual fee
8. If the product wasn’t going to sell enough to cover these fees and overhead, it was only there to rip off sales from American Companies
This is how you get China to pay. And how you at least start to protect American companies, from being knocked off.