Does Amazon Compete with Your Products on Amazon.com?

by: Anonymous Annie

Just now getting my toes wet with Amazon ads. I've set a modest daily budget and I bid modestly on what each click will cost me. And to my GREAT DELIGHT, I'm getting more Amazon-generated click-through sales than I get ''on-eBay'' sales.

I'm discovering that (for me) the Amazon shoppers/browsers that are interested in my ads are ALSO shoppers who are ready-to-buy. They're not bottom-feeders, they're sophisticated, they don't bury me with questions, they know how to read listing details.

My experience may not be typical, but these are EXACTLY the type of customers that I am delighted to have.

It's difficult to compare costs between eBay and Amazon-Ads... but my monthly Amazon budget is LESS THAN the typical monthly fees I pay to eBay.

Obviously, not every Amazon click ends up in a sale, but it's proving to be well worthwhile as the sales continue to come in at a pace that beats eBay.

At this rate, I should experiment a little and increase my bids per click... or increase my overall budget to see if there's a correlation that produces even MORE sales.

It might work, or it might not work, but at least I have the OPTION to try, and I can always ease-back on my investment if it doesn't have the desired effect.

In contrast, there's not a whole lot that I can do to influence my eBay views and purchases. For the most part, I'm at eBay's mercy.

The ''rush-to-the-bottom'' game is something that I'm not going to fall prey to. I'll just continue to offer quality products and excellent service on a well-organized and easy-to-use website. (After all, there's more to ''value'' than price alone.)

by: pace306

I was offered a position as a buyer for Amazon - so I can tell you how it works.

Amazon isnt ''people'' its a computer program. All day, every day each ASIN is analyzed and reports are created. If you introduce an item into Amazons catalog it gets added to the section on new ASINs. That section is monitored for 30 days. If in that time it reaches a certain threshold (as set by the buying team in that specific category) OR it is deemed to be an important part of the catalog - then Amazon auto generates a PO to the manufactorer and the program gives iteself the box!

If you lower your price by %2 (the threshold) lower then the Amazon price, the programs built in repricer corrects the price. Its set by a certain factors (margin, quantity on hand and how popular the item is. If the item isnt popular Amazon waits till their stock is depleated  then rotates the next best price/best performance seller into the box.

Amazon makes at least %8 on every sales - so its a win/win for them. The only question is, if they choose to ''own that sku themselves'' or not.

by: Susan Averello

I wouldn't want to sell on amazon but I sure like the prices when it comes to being a customer there.  

by: Digmen1

It seems to me that small sellers are better off with their own websites rather than be controlled by sites such as ebay and amazon.

But of course setting up your own site and getting views/sale is not that easy.

by: tb

This has absolutely happened to us many times! It makes perfect sense from their standpoint. Do you think they're not watching what Marketplace sellers are doing? It's a great opportunity to get valuable marketing data AND get paid for it!

Just like eBay, Amazon is not your friend.

by: tb

BTW, Sears? Are you kidding? Is anyone selling there? I see they charge $40 a month to sell. I'm shocked and amused.

by: Ina

@pace306 "then Amazon auto generates a PO to the manufactorer"

Wouldn't Amazon need to know the cost of the item before issuing a PO?

by: KEEPING A CLOSE EYE ON THEM ALL!

Quote from Anonymous Annie:

 “I'm discovering that (for me) the Amazon shoppers/browsers that are interested in my ads are ALSO shoppers who are ready-to-buy. They're not bottom-feeders, they're sophisticated, they don't bury me with questions, they know how to read listing details."
(Anonymous Annie)

You hit it right on the head. Which is precisely why we do a large amount of our business on Amazon and our own sites as opposed to dealing with all the foolishness that goes on on ebafia.  

The buyers on Amazon are (for the most part) educated, thoughtful and informed folks who are willing to pay what something is actually worth as opposed to ebay where everyone expects you to GIVE THEM EVERYTHING FOR FREE and then want to BITCH about it in the process.


We decided long ago ebay was a losing proposition and went to Amazon and we couldn't be happier there - And there ARE ways to counter Amazon 'competing' with your items...

Think shipping cost for starters - Most buyers there are savvy enough to check the TOTAL cost of receiving an item and we've found more often than not we provide the 'like items' at a lower total to their door cost than Amazon it's self does so we get the sale.

by: Moonwishes

I've been slowing starting to list on Amazon again after a several year Hiatus. Just this month alone I sold almost $100 worth of inventory. After fees, etc. I make within pennies of what I make on ecrater for the same product. I'm willing to sell on amazon has it has never made me feel like I'm getting a stress ulcer. I also don't play the race to the bottom with prices either. I list at a certain price and leave it at that.

by: pace306

@ina :)

Amazon is like Walmart - EVERY major manufactorer wants the 800 pound gorilla to buy thier items.

If you are the printer buyer for example - you either go to CES and establish a relationship or they come visit Seattle.

Amazon chooses which companies to deal with - but all price sheets from almost all companies are in thier system. The program auto generates POs as need. No human being gets involved unless a category gets too saturated to make any money or they own too much product.

Items that sell well that are NOT in their ordering system are kicked ''upstairs'' to the actual manager or head buyer for that section - and the contact(s) needed are made.

It happened to me with iHIP. I introduced most of their items into Amazons catalog, and after 6 weeks - I had Amazon as my competition on EVERY SKU. IFOr something that I was selling for 29.99, Amazon cut it to 17.99. They did it because they can - the program looks at margin not profit.

I gave up on most SKUs after that and now only sell one or two there - as the rest are ''killed'' or not popular enough to carry.