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Driving the Cost of Creation Down to Zero

The challenge in creating new products to sell online, be it private-label or new inventions, is capital and time. The capital and time is the cost of creation. The goal is to drive the cost of creation down to zero.

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The Top Amazon Sellers Don't Change Often

Only 2.4% of the top 10,000 sellers on the marketplace started selling during the past 12 months. The takeaway is two-fold: new sellers do not immediately break out in to the top, and top sellers are able to stay in the top for years.

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The Best iPhone out of 10,000

Devin Wenig, CEO of eBay, said "Nobody wants to go through 10,000 iPhones. Show me the four best options." eBay is correct that the way eBay functions today is not how most people shop.

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Amazon Retail Cloud

Why does Amazon Basics exist? The difference between what Amazon could be making, and what they do make today is why this is interesting. In fact, that difference is why Amazon Basics is not the play it appears to be.

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The Channel Shapes What Is Bought

People do not shop the same on Amazon as on eBay, nor on eBay as in small websites, and neither in small websites as in retail shops. And so people do not buy exactly the same things on Amazon as they do elsewhere.

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Sellers Paid Amazon More Than $10 Billion in the Fourth-Quarter

During the last three months of 2017 Amazon's revenue from third-party seller services was $10.5 billion. For the first time surpassing $10 billion in a quarter. For the full year it was $31.8 billion. It is easy to misunderstand the scale of Amazon's marketplace since the company reports so little on it. The $31.8 billion in fees in a year is why most analysts estimate it at over $100 billion in GMV.

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