Selling on Amazon

[David]

For my useless trivia post of the day:

 

1) Amazon keeps 12% of the transaction value of anything you sell in a virtual storefront on their site.

 

2) Amazon gives you 45% of the list price of any media you sell on their site, keeping the delta between what they pay you and what they sell it for.

[RonStewart]

So, if I am looking at buying a cell phone on Amazon, and Fred's Cell Phone Inc pops up as a seller through Amazon, I might be able to get a 5 to 8 percent discount by contacting Fred's directly?

 

And even deeper discounts if I am looking at books or albums?

 

Downside might be in returns, refunds, exchanges, etc?

[David]

Yes, those vendors love it that you find them on Amazon, but they would much prefer to deal with you directly.

 

On the media portion, that wouldn't work. Contractually you can't sell for less than Amazon does. At least if the price is public.

[Aluminum_Butt]

I've got a buddy who sells model trains, primarily through the Internet, and is a former Amazon reseller. He accuses Amazon of watching the order patterns of items that they don't carry themselves, then adding those items as the financial metrics make sense. Of course, with their buying power, they can buy/sell it for less than the smaller shops who originally sold it through Amazon.

 

It's obviously a savvy thing to do, but if it's true, they are effectively using, then screwing, their resellers.

 

 

[Couchrocket]

I've got a buddy who sells model trains, primarily through the Internet, and is a former Amazon reseller. He accuses Amazon of watching the order patterns of items that they don't carry themselves, then adding those items as the financial metrics make sense. Of course, with their buying power, they can buy/sell it for less than the smaller shops who originally sold it through Amazon.

 

It's obviously a savvy thing to do, but if it's true, they are effectively using, then screwing, their resellers.

 

 

This is just a variation on a very old theme in retail. I once knew a fellow with a small business that made toilet seats (plastic molded). Sears came to him and told him they liked his toilet seats and would like to buy 10,000 of them a year at X dollars a piece. GREAT contract for him. So, he spent the money to expand his operation, ramp up production, and sold Sears his toilet seats. Next year, Sears wanted 10,000 more - at 30% less than they paid per unit the last year. Fellow had tough decision to make re his business and the employees he'd hired.

 

 

 

[Lawman]

That's pretty crappy..

[Polo]

Let's see if I get this right.

 

I am interested in buying a very good book on management, let's say for the purpose of this conversation that I decide to buy a book recently available, which seems quite interesting, serious and full of good information: "Managing Right for the First Time" for $24.95.

Amazon pays 45% or $11.22 to the publisher, and keeps 12% of those $11.22 on top of all?

 

So, its Amazon $15.06, Publisher $9.87 ??????

 

Can someone explain the difference between that and highway robbery?

[Rphoto]

Without Amazon's vast distribution system you have a warehouse full of books and zero dollars in sales.

[Green RT]

This is just a variation on a very old theme in retail. I once knew a fellow with a small business that made toilet seats (plastic molded). Sears came to him and told him they liked his toilet seats and would like to buy 10,000 of them a year at X dollars a piece. GREAT contract for him. So, he spent the money to expand his operation, ramp up production, and sold Sears his toilet seats. Next year, Sears wanted 10,000 more - at 30% less than they paid per unit the last year. Fellow had tough decision to make re his business and the employees he'd hired.

Isn't that the WalMart business model?