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by NickC25
1371 days ago
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>There’s a reason new DTC brands avoid Amazon and that’s cause you’re not building a customer base or your brand, just helping Amazon build there’s.
THIS X10000! Happened to a colleague of mine not too long ago. She developed a product, and sold on Amazon as well as her own storefront. As soon as she started seeing solid volume on Amazon, her product became an "Amazon preferred product" or something like that. However, within 2 weeks of getting that distinction, her sales dropped to 0 on Amazon. Why? Amazon started selling a nearly identical product - Amazon used the sales data to understand her product was popular, and went right to her supplier and cut her out of the equation. Amazon does this constantly. |
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This is not a new thing either. Or unique to amazon. This has been going on for decades (or as long as retailers have had own label products). Every Walmart/safeway/target/kroger branded product is essentially a clone of somebody else's product that they figured out they could do cheaper.
Years ago my MiL was selling her baked goods directly to a local grocery chain. They then decided to bring baking in house and came out with an almost identical product line.
If you have a product that is easily copied/reproduced (and not patentable) then a retailer can remove your margin by doing it themselves and in this case your value becomes the brand/brand recognition and not the product itself.