Tag: Amazon FBA

Amazon’s 3P Sellers Face FBA Bottlenecks Before Black Friday – Will 2025 Be Any Different?

Benjamin Franklin may have said, “In this world, nothing is certain except death, taxes, and supply chain nightmares before the holidays.” And I’d agree with him. To be fair, the marketplace has become so competitive and complex that large variations in volumes are bound to create some troubles. However, it seems like this year has been especially challenging for those selling through Amazon FBA.

Should we blame the port strike earlier this year, larger volumes of inventory being shipped, or other factors? In today’s article, I’d like to go over what happened with Amazon and see how the company is dealing with it. We’ll then look at how sellers were impacted, but more importantly, why fixing these issues is critical for the ecommerce titan.

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Selling Private Labeled Items from Alibaba on Amazon Is the Fast Lane to Failure

I recently saw an intriguing article in my recommendations. It was a guide on how to find products on Alibaba to resell on Amazon. I wondered why Google would recommend articles from 2017? But no, the article was published recently by a major company that sells market research software.

I get it, everyone is looking for the easy, quick, and risk-free way to get rich. And people have been selling that dream since commerce was a thing. We’ve seen it with dropshipping, with “Alibaba to Amazon” private labeling, or with the millions of pyramid schemes out there. Hell, I am sure people in ancient Greece were selling courses on investing in olive oil and wine.

Even though the article doesn’t present itself as a “get rich quick” guide, I found it overly optimistic. I don’t blame the company; it was well-written and probably does a great job at selling their software. And it isn’t misleading either; there is a lot of good and useful info in there. But because I know there are aspiring entrepreneurs reading my content, I’d like to discuss the risks of this strategy. The market has changed drastically since people started selling products sourced from Alibaba on Amazon, and I think it is necessary to understand these changes.

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Why Are Amazon Third-Party Sellers Furious? Analyzing the New Inventory Placement Fee and How to Reduce it

When Amazon initially announced their new fee structures for 2024, sellers were expecting to see an increase in how much they’d pay. But now that the fees are implemented, there is a lot of outcry across Amazon seller forums, Reddit, LinkedIn, and social media. The object of all this rage: Amazon’s new inventory placement fees. Beyond the Change.org petition to get this fee removed, this made so much noise that the FTC is now investigating it. The agency’s interest followed Fortune’s recent article on how sellers feel about this new fee.

Today, I want us to review what this fee is, explain why sellers are furious and how it may impact your business. Finally, we will see if every company is impacted equally and investigate potential strategies to mitigate the impact of this fee.

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FTC vs. Amazon: What Would A World Without Amazon FBA Be Like?

According to the FTC, Amazon now takes nearly half of every dollar in sales from sellers who use its fulfillment services.  Wow, that is quite a bold statement, and I can’t help but picture a high school bully stealing lunch money from scrawny kids. But is the situation really this dramatic? In the final part of my FTC lawsuit review, I’d like to go over the allegations concerning Amazon’s FBA (Fulfilled By Amazon) program.

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