Amazon has created the perfect way to destroy their competition, without the need to actively buy them out.
The Amazon Marketplace, and the sellers who operate on it are going to result in a large number of small businesses going bankrupt.
So many small businesses are trying to "Buy Box Chase" on Amazon, without paying attention to what their goods cost.
And, shipping it that way is going to leave a HUGE chance that the item tears the envelope, and gets lost. FC Mail has ZERO innate Insurance.
So,
15.99 - Amazon Fee = 13.59
13.59 - Shipping = 9.75
9.75 - Cost of Goods = -3.71
This is one product, out of over 100,000+ Products.
Each item that I've looked at from this seller is in the same place. Losing Money after actually buying the product.
And no. They aren't buying Surplus. The manufacturer in question doesn't bulk surplus inventory
I wont be anywhere near the buy box. This guy, and all the dumbasses within 20 cents of him will, and they will lose money every time.
Eventually, these guys will have cannibalized each other, and will have to bow out of the market because of their losses.
Less Vendors, makes it easier for Amazon to strike deals directly with manufacturers.
At that point, Amazon can then push me out the door, because they are buying from the same source as me, and have a better shipping discount.
People need to wise up, and wake up. Amazon is in this to get everyone buying from them. The Amazon Marketplace is not a "service" to other sellers. It's a way to thin the herd.
It's a necessary evil, and I don't think that Amazon started it with this mentality in mind.
But that's where we are. Amazon's interest is to be the Gorrilla in the room, and they'll choke out your business to do it.
Get smart people, or get run over.
/rant.
The manufacturer that I'm currently working inventory up on has 2 price tiers. We have the best price tier. No one buys their goods cheaper than we buy them.
Product X has a cost of $13.46.
Seller Dumbass is selling it for $15.99 FBA Prime.
15% seller Fee on $15.99 is $2.40, leaving 13 cents above cost to pay for shipping, and make a profit.
Even in a manilla envelope, first class, said product would cost $3.84 at Commercial Plus Pricing through USPS, even on Prime.