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amazon

Scary truth: Why selling on Amazon is not profitable?

Amazon

Selling your products on Amazon is the best way to lose profits. No exaggerations here, that’s the hard fact. Here’s why.

Amazon: Alligator Eating Profits?

As you might’ve heard or seen, many offline businesses are flocking to sell their products on Amazon and it’s making use of this dominant position to drain off a large portion of profits from the sellers.

According to reliable reports, with these incredibly high seller fees, Amazon has become the most profitable while feeding on lean sellers’ hard-earned profits.

Regulators and lawmakers who have accused Amazon of abusing its market dominance have pointed out the same problems, with many claiming to pass exclusive legislation to limit Amazon’s dominance that is damaging to businesses, employment, and market equity all over the world.

Yet Amazon continues to raise the percentage share from vendor earnings with zero retribution.

Sellers are losing upto 45% off their Profits?

This significant finding suggests how Amazon is restricting vendors with unfair rules that make it almost hard for them to succeed.

Amazon’s algorithm chooses selective vendors as the default buys on the product’s page over others, offering the same item at a similar price range.

Sales, fulfillment, and advertisements account for the majority of seller fees, and the commission paid on each sale is called the referral fee.

However, the majority of the earnings come from Fulfillment by Amazon (FBA), Amazon’s service that stores, packs, and sends merchants’ products to consumers.

Ad income is rapidly increasing as more merchants pay for advertisements to receive higher ranking and visibility on Amazon, particularly on product pages and search results.

Many sellers are finding it extremely to compete with competitors due to their inability to lower their prices below their profit margin.

Businesses are literally running out of options and are becoming over-dependent on Amazon to reach a wide range of consumers.

Along with FBA, vendors are paying Amazon huge money for digital advertising. Amazon has come under fire for increasing the price of sponsored spots in search results to maximize the available ad inventory.

Maze Runner: Don’t lose profits

If you are wondering how to escape this Amazon labyrinth, you might have to consider opting for eCommerce platforms.

Today, there are many e-commerce platforms that allow you to create your own online store free of limitation at a much lower cost compared to Amazon or Flipkart.

Singlebag is the best among them. Singlebag lets you create your online store in 5 mins with amazing features and specifications. It’s super simple to use and very affordable for everyone.

More awesome news Singlebag comes with a free 14 day trial to give you the taste of the awe-inspiring eCommerce experience you’ll ever get.

So, it’s clear enough that people are losing money & profits selling on amazon, and it’s time for you to stand-out from the crowd.

Get ready, start your online store today and start universelling, to enjoy 100% profits with Singlebag.

AmazonBusinessBusiness ownersE-commerceEcommerce businessEcommerce platformecommerce storeEcommerce tipsOnline businessonlinestoreprofits
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About The Author

Singlebag is an eCommerce platform or a tool that helps you set up an online store, market and sell your products to global customers.
Whether you are a startup or an established business, Singlebag is an all-in-one eCommerce platform that helps you stabilize and boost your business.
We are the first eCommerce platform for a variety of businesses in different realms that you can imagine.

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Singlebag is an eCommerce platform or a tool that helps you set up an online store, market and sell your products to global customers. Whether you are a startup or an established business, Singlebag is an all-in-one eCommerce platform that helps you stabilise and boost your business. We are the first eCommerce platform for a variety of businesses in different realms that you can imagine.

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