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Jerry's avatar

Fantastic analysis, Nick! We're a long time (since 2010) 3P Amazon seller that moved 2m units on the platform in 2020. I've never regretted my past success so much as this year, where I find myself with a pile of inventory and overhead, and a never-ending avalanche of Amazon fees and pay-to-play ad schemes that has eroded our margins to the point of insolvency. We are hanging on for dear life, but it's terrifying. I've been baffled by their seeming eagerness to kill off the golden gooses of 3P sellers (simultaneously jacking fees sky-high while enforcing price-parity, and hoping no one drops the hammer), but your article puts it in a new light - they are topline growth addicts, and they can't help it. It's going to be a bumpy ride, I sincerely appreciate you bringing your expertise to this issue.

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Peebo Preboskenes's avatar

Great piece.

Why is Amazon so fixated on their share price? I understand that the c-suite execs make their living from rising share price but is there another reason as well? I guess its as much about predatory pricing and keeping market share as it is growing market share but am I missing anything?

If Amazon isn't a monopoly and market-abuser these words have no meaning.

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