Let’s address the elephant in the room…
I have an Amazon Prime account. You’re not a bad person if you buy things from Amazon. You just want some dog food with free 2-day shipping! We get it.
But there are a few things you should know about the fees that Amazon charges American small businesses to sell on their platform.
1. The Cost to Sell on Amazon Keeps Going Up
As Amazon captures more and more of e-commerce, they have increasing power over the fees they charge. All too often, small, independent Makers have no choice but to “pay whatever it takes” so that they can be listed on Amazon alongside their competitors.
In 2023, Amazon charges up to 45% of an item’s selling price + a per-item fee if a seller doesn’t have a professional selling account. Imagine spending years perfecting your product, working long hours for little pay, only to have Amazon take almost half of your sales right off the top?
2. Amazon Doesn’t Care About Small Makers, They Just Want To Make Money
Pop Quiz: Who do you think Amazon cares more about, Procter & Gamble, the largest consumer goods company in the world, or Average Jane, a hardworking American who sells handmade goods out of her garage.
I think we all know the answer to that…
The point is, Amazon doesn’t care if Average Jane makes it or not. They aren’t offering special pricing so Average Jane can make the margins work. Amazon simply offers a “take it or leave it” selling platform that makes it almost impossible for small businesses to turn a profit.
3. Why Buying Directly From Makers is So Important
When you purchase directly from a Maker’s website, you’re sending your dollars directly into their pocket. Where you order matters!
If you see a Maker’s product listed on Amazon AND their own website, the small business owner would prefer you order from their own website 99 times out of 100.
Changing shopping habits isn’t easy, and ordering from Amazon is certainly addictive. But if you take the time to order directly from an entrepreneur’s website instead, you’re helping that small business thrive.
At Grommet. we’re proud to offer a platform where Makers can connect with you directly. If you haven’t already, check out the hundreds of Makers on our new website.