Amazon, one of the most significant e-commerce platforms globally, includes a system known as Fulfillment by Amazon (FBA) that enables entrepreneurs and company owners to sell their goods on its platform. There’s loads of enthusiasm for this system, and several people have established their “business” on the Amazon Marketplace.
People disregard the truth that Amazon Fulfillment Services owns the consumer along with the order process. Whenever you send a consumer to Amazon to purchase your product, you turn into a glorified affiliate. It’s your company’s product, but Amazon Order Fulfillment pays your company a commission two times a month on sales. Amazon is among many platforms which sell your company’s product for you. Any time you utilize any one of these channels, you don’t keep control of the order process. I don’t dissuade using those platforms; however, if you employ them exclusively, you don’t have a business. Instead, you’ve created an income stream in somebody else’s backyard.
These platforms maintain your consumer data and regulate the complete sales cycle. You’ll be legally prohibited to utilize the data, AND you’ve got no power over the way the sales flow functions. Any kind of upsells or cross-sells tend to be advised by the platform, not your company. You can’t efficiently push external traffic or marketing campaigns toward an Amazon ‘business’ since you can’t regulate or monitor the performance of those campaigns. Why? It is because your company does not regulate the order process.
You can’t set any tracking or conversion pixels and find out that from the twenty sales you’ve made, five have been from Facebook, three coming from YouTube, and the remaining happen to be organic. You don’t have something scalable that your company could control, that could manage the pros and cons of the selling Amazon FBA program. You’ll be able only to cross your fingers and wish that your company earns more money than you invest in marketing and advertising.
I’m able to picture many others who have faced this as well. I am aware of businesses who happen to be doing 2 million dollars per month within the health supplement industry, and then Amazon closed them down so that it could sell identical products. It turned into a competitor and turned them bankrupt. Amazon has been doing this on a regular basis. As soon as the platform sees a product that’s selling incredibly well, they’re able to shut it down and request supplier data to confirm that the product is authentic. Now that it has got the data, Amazon contacts the supplier on their own, generates a large order, and shuts your company’s account. It’s a ruthless world, and those that sell on Amazon have to take into account that it will run dry at any time.
Even though I speak a great deal on Amazon in this principle, it’s not all about Amazon. The secret is this: You have got to keep control of the order process. To be able to establish a flourishing online business, you need to realize the function and movement of your company’s sales cycles. You’ve got to be capable of testing, tweaking, and editing it constantly. You have to be in a position to regulate everything- product selection, payment processing, the receipt page, follow-up email messages, every little thing.
Next, you should own the consumer data and have the ability to follow up with the consumer. In case you don’t keep control of the order process, your company cannot do any of this. In case you don’t regulate the order process, you don’t possess a business. At this point, I understand it appears like I despise Amazon and websites similar to it, but I don’t. I like Amazon! For instance, we have helped customers generate millions selling their specific products on the website with our Amazon Marketing Services. We use technology to help others sell more on the platform. Amazon is merely a sales channel for usage in a business. It’s an additional benefit, not the building blocks of a well-designed e-commerce company.
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