economie

This small business founder won’t sell on Amazon. Here’s what she does instead.

Dip’s shampoo and conditioner bars

Assaraf isn’t alone in her skepticism of Amazon as a way to grow her company.

Small business owners who have started selling on Amazon have said the fees and other costs have made it tough to actually make money, even if their products get more exposure than they would on other websites.

Even sellers who have found success on Amazon say it involves finding out which products sell best on the platform, including which ones provide the greatest return on advertising spending.

Plus, “sometimes, your savings buying through Amazon are not even that strong” for the purchaser, Assaraf said.

An Amazon spokesperson told BI that the company is “investing more than ever in supporting” small businesses that sell through its website. The spokesperson also pointed to various incentives for new sellers, such as discounts on Amazon’s fulfillment options and money back on sales of brands that register with Amazon.

For brands focused on sustainability, Amazon also offers a Sustainability Solutions Hub, including data and guidance that can help brands highlight earth-friendly products on Amazon, the spokesperson added.

Roughly 60% of the sales on Amazon’s website come from independent sellers, “most of which are small and medium-sized businesses,” the spokesperson said.

Meantime, Dip works with ambassadors who represent the brand on social media, Assaraf said — but only if they are devoted users. “Please do not apply if you aren’t already a customer of Dip,” its website reads.

Many forms of advertising and acquiring new customers, including ads on Amazon, have become prohibitively expensive for new brands, Assaraf said. “Attention’s the new currency, and the cost of cost of getting any of that is very high.”

Do you work for Amazon or sell through its website and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com

Read the original article on Business Insider

https://www.businessinsider.com/why-small-business-founder-wont-sell-on-amazon-costs-2024-8