Selling on Amazon: my company’s Plan

The elephant in the room when it comes to ecommerce is Amazon. The assumption among many merchants and their clients is that you need to be on Amazon or you’re destroying your business. I appear to hear that all the time.

In fact, I am not overly fond of Amazon. There’s a large amount of business to be had on this platform, to be certain. And it does have some innovative technologies. However, Amazon is disrespectful to resellers. It abuses its power and does not function in the best interest of its clients.

Your plan for Amazon depends on what your business looks like. In this post, I will discuss my company’s plan with hopes that it helps you.

My company, Beardbrand, is brand-focused. We create our own products and we are therefore able to set contracts which specify who can sell our goods on Amazon. We’re working to ensure there is not a race to the bottom with pricing. If you’re a pure retail play, or a drop shipper, Amazon will probably introduce a different business model.

Since we can specify who can sell our products on Amazon, you might assume it would be us doing the selling. But that isn’t the case. We do have our products on the platform, but via an exclusive relationship with Etailz, among the top 25 retailers on Amazon — with more clout than us.

We made the choice to associate with Etailz for a couple reasons. We seen managing our Amazon listings as a different sort of business model and one which we were not highly capable at. We tried our hands on the platform and found a little success, but it turned out to be more of a distraction. To succeed on Amazon, we would have to spend more time. As opposed to investing in a platform that was not ours, we chose to spend some time on our top abilities: online branding and retail.

We treat Etailz like some of our retail partners. Thus, Amazon becomes a part of our wholesale company, instead of an entirely new branch within our enterprise. Clients can still pick up there, but it will not be in the high level of support they can become directly on our site.

The strength of the strategy is our ability to produce a special relationship with our customers, on our own site, as opposed to leveraging buyers on a third party platform. Our principal store performs very well. Platforms like Amazon constitute only a small proportion of our revenue.

The probability of building your company on Amazon is that at any time it can alter its policies, kick off you, or begin competing directly with you. Each time I attend an ecommerce conference I hear these stories. However, when you associate with a large player like Etailz, your chances grow. It is possible to use the connections and power a $50 million company brings to the platform.

From a cost perspective, it might appear that we’re losing margin by selling through another freelancer. But when we correctly factor in energy, time, and marketing efforts necessary to conduct a successful Amazon shop, we’ve found otherwise.

If you don’t have a wholesale division, my company’s plan may not apply. But if you’re already working with retailers, your surgeries might find a hell of a lot simpler.