Does eBay or Amazon Own Your Business?

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Tough love time. If you rely on eBay or Amazon to drive the bulk of your eCommerce sales, the future health of your business is at risk. I know this to be true based on personal experience.

We all know that selling on the big online marketplaces is an expensive business. Listing, final value, FBA, PayPal – the fees never seem to stop. The recent news that eBay has increased its shop fees will be another bitter pill for many retailers to swallow.

But because eBay and Amazon can potentially drive huge revenues into your business, you put up with all the expense, changing listing policies, feedback hassles and lack of support.

eBay and Amazon can also lure you into a false sense of security. This is incredibly dangerous.

Never forget – if eBay or Amazon (especially Amazon) don’t like something you do, they can and will shut your marketplace operation down. Don’t think, just because your business pays a significant chunk of change into their eco-system that they will miss you. When a business operates at the scale of these big guys, even the largest third-party seller is just a drop in the ocean to them and very easily replaced.

Not Fake News

I once worked for a large, well-known media company, managing their DVD and CD sales via the various online marketplaces. Amazon was big business for us but one day, through no fault of our own, the business crashed to a halt.

Someone, we believed to be a competitor (although this was impossible to prove), had falsely reported us for selling counterfeit products. Amazon duly suspended our account. Despite the allegation being completely untrue, with no human contact there was no opportunity to overturn the suspension. As a result, the marketplace business lost tens-of-thousands of pounds over the 30 days our account was down. To add insult to injury, Amazon also froze access to our funds putting extreme pressure on our cash flow.

As one of the UK’s largest DVD and CD suppliers, we could have easily proved the allegations made against us were completely false – but with no human point of contact, we had to ride out the suspension and put our faith in a series of automated communications from the marketplace.

Alternative Routes to Market

Thankfully, as a well-established business, we had multiple routes to market including a very successful catalogue and increasingly popular website. Had we been a smaller business, we could have crumbled.

If eBay or Amazon own your business, it’s time to spread the risk.

Driving traffic to your own website should be the ultimate, long-term goal but this will do very little to protect your business in the short-term.

SKU Cloud Helps You Spread Your Risk Now

SKU Cloud can help you open up additional, high traffic, high volume routes to market with zero upfront investment and no seller fees.

Integration is easy, with retailers currently powering their online sales via multi-channel software solution such as ChannelAdvisor, Volo, SellerExpress, etc. able to list and sell products via our network with just a couple of clicks.

And with dedicated UK-based support, you can rest assured the future of your business will never be jeopardised by automated complaint procedures or unforgiving algorithms.  We maintain a high-level of service by maintaining good relationships with our retailers and eCommerce partners.

To learn more about listing your products across multiple eCommerce venues, reducing your costs and taking back control of your own business, call SKU Cloud on 020 3745 4483 or visit: https://sellers.skucloud.co.uk/contact

 

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