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Thu Dec 20 2018 23:51:41

Amazon Sheds CRaP Products and So Should You

By: Ina Steiner

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Amazon doesn't want to sell unprofitable products itself, which it refers to as CRaP ("Can't Realize a Profit"). On the other hand, it has no qualms about competing with its own merchants for profitable products, according to reports published this week. 

The Wall Street Journal said Amazon doesn't want to sell "CRaP" products anymore. "Think bottled beverages or snack foods. The products tend to be priced at $15 or less, are sold directly by Amazon, and are heavy or bulky and therefore costly to ship." So it's asking manufacturers and vendors to repackage or fulfill those goods themselves. 

But while it's using various techniques to shed its portfolio of unprofitable items, how it selects profitable items to sell is coming under fire. This week, Bloomberg (via the LA Times) reported that Williams-Sonoma is suing Amazon for copying West Elm furniture designs. The newswire wrote, "Amazon's Rivet line includes products that are "strikingly similar" to Williams-Sonoma's West Elm brand, including a $300 orb chair the household goods maker introduced two years ago, according to Williams-Sonoma's complaint."

Whether or not Amazon violated the intellectual property of Williams-Sonoma, the case gives ammunition to those who claim Amazon unfairly competes with its third-party merchants. This week retail industry analyst Sucharita Kodali pointed to research from an HBS professor that she said "proves what many already knew: Amazon cannibalizes its best 3rd party sellers."

The report says Amazon targets successful third-party sellers' product spaces, and that sellers with successful products "are pushed out of markets because platform owners enter their product spaces and compete directly with them."

Amazon has the clout to push its weight around, but third-party sellers of all sizes should do the same kind of analysis Amazon does when it comes to the products they sell.

Are you guilty of selling CRaP products? 

Now is a good time to evaluate profit margins on your products, especially with shipping costs going up. And don't forget to take into account USPS expansion of dimensional weight pricing, which can provide sellers with an unwelcome surprise when it comes time to ship large, lightweight items.

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Perminate Link for Amazon Sheds CRaP Products and So Should You   Amazon Sheds CRaP Products and So Should You

by: sasikat9 This user has validated their user name.

Fri Dec 21 14:29:59 2018

We have been cleaning out the basement and eliminated over 2000 items from our store on Greedbay. The local goodwill loved the donation and we loved having extra room.

Perminate Link for Amazon Sheds CRaP Products and So Should You   Amazon Sheds CRaP Products and So Should You

This user has validated their user name. by: RKTOYS

Fri Dec 21 20:36:50 2018

With a 20% take and shipping vouchers stuck in 2005, Amazon can turn anything into a "CRaP" product.  They're not a viable channel to start a small business.  If you're big enough to buy in the volume that can survive those fees, you're big enough to sell on your own site.  They depend heavily on a neverending stream of suckers.

Perminate Link for Amazon Sheds CRaP Products and So Should You   Amazon Sheds CRaP Products and So Should You

by: Barbbie This user has validated their user name.

Thu Dec 27 09:26:06 2018

The reason they did not get any holiday products from me this year is because last year they received a shipment of Halloween product in September, supposedly sent it out to other warehouses thus putting it out of stock until Nov 3rd.
During the selling season Amazon came up with the product themselves when they never had it before, sold it, and I had to sell mine for no profit after the season was over.
This year, kept it all myself, no FBA - Amazon did not have any strangely to sell this year and I got to keep a lot of money in my pocket. Worked out good will do it again next year same way.

Perminate Link for Amazon Sheds CRaP Products and So Should You   Amazon Sheds CRaP Products and So Should You

by: glasspackaging This user has validated their user name.

Thu Dec 27 10:07:40 2018

we were selling about $400K a year on a few items - (not our total line on amazon) .. suddenly -  Amazon shows up on these 4 items that they bought at "wholesale" from the USA factory warehouse ... we drove the price down below wholesale (we are a direct importer and pay far less in Italy for the items)....  amazing  Amazon reordered a few times then gave up the product line - the result - they killed the items profit AND lost money on doing so - why oh why would they not have been happy with the 15% clean profit from us? ...  greed.. pure greed..  sales have never recovered as we raised prices back to normal... no desire to sell at the price we drove it down to for very long.

Amazon at its best ...  is horrible for their 3ps ...  



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