Launched three years ago in October 2015, Amazon Handmade was hailed as the "Etsy killer". And yet while it continues to grow it hasn't measurably impacted Etsy. Only 1.3% of Etsy sellers sell on Amazon Handmade.
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The Amazon seller has changed a lot since 2000. The changes are in what kind of products and the relationship with the brands they sell, how they handle fulfillment, and most recently where in the world they are located.
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Not unlike Netflix, Amazon is about matching the unique demand with the best choice. Netflix can service different audiences simultaneously and separately. Amazon search is starting to look like that too.
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"Hey, the same mattress is on Amazon for 1/4th the price, with free two-day Prime shipping, and thousands of reviews." How many customers would still buy a Casper mattress?
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The fee charged by marketplaces is fundamentally buying just one thing - distribution. Distribution is a cost of doing business and thus doesn't come for free.
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Private Label Pulse was our first-ever event. The event hosted four talks on the future of private label, advertising, international expansion, inventory performance & health, and - of course - Amazon.
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The Walmart marketplace is frustrating because it is two different experiences sharing one website. CNBC broke the news that Walmart is working on fixing this. Walmart is finally addressing the flaw which existed since the marketplace inception in 2009.
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Most often Amazon marketplace is described as "there are currently more than 2 million sellers on Amazon worldwide." The 2 million figure has become common speech. But it is wrong.
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Amazon wants to replace trust in brands with algorithms. Instead of consumers picking the brands they trust, Amazon wants them to pick products recommended by the algorithm. But what if Amazon is wrong?
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As more Amazon shoppers convert to Prime members, successful sellers have to do what those shoppers expect. Thus more sellers use Fulfillment by Amazon every year - today 69% of the top sellers on Amazon use FBA.
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