Should I sell products on Amazon or am I really just wasting my time and money as they change directions regularly?
What is happening to Amazon
When Amazon first started as a bookstore, we all laughed and said it would never make the grade. However, they started to introduce new products and adopted an affiliate marketing program to boost sales volume.
Amazon grew beyond the imagination of us all and add so many products that almost anything was available. They concentrated on delivery and built what still remains a success story in product distribution.
With centers established around the world, they had cheap or free delivery within a few days. Using low-cost contractors who would work at all hours for minimal pay, the system was unbreakable.
Amazon got greedy
Amazon was always tight on affiliates with a very short pixel life, but as the Covid pandemic hit they thought they had it made.
They reduced affiliate commissions to the point where it was not really viable to support them as sales rolled in on a direct basis. Affiliates left in droves to pursue better opportunities elsewhere.
That is when it came back to bite them. The first action was to reduce 10,000 staff because sales had fallen, and then to lift affiliate margins back up to keep the drain from getting bigger.
However, the affiliates were over Amazon, and sales continued to fall. In early 2023, another 18, 000 staff were let go and Amazon suffered a major loss in the past 12 months (2022), with shares going from a high of $156 to a low of $80
Was Amazon self-destructive?
It is certainly your author’s impression that Amazon shot itself in the foot by changing the selling platform.
They got greedy and wanted more front-end sales and less opportunity for affiliate contributions.
Affiliates gave up, as the time spent earning a paltry 1-2% commission was just not worth it. Therefore, they found new fields to play in and were naturally reluctant to return to Amazon.
They turned the tap off, but then it would not turn back on, and sales collapsed. Shares fell, and hard-working staff lost their jobs.
Time will tell, but at this stage, the future does not look bright, however, Amazon has proved us wrong before.
Where did the Amazon affiliates go?
When you have a good income stream and you lose it new actions are required.
Other major distributors, like Walmart, followed the Amazon model and faltered in their progress as well.
Looking for a good income, some went to
Making money on the internet is not all that hard if you have the right model, and Michael Cheney shared his with many who were seeking online gold.
This entirely new way to find a quick return changed the whole way we viewed the market.
Some followed and tried to copy it, but Michael had it in a complete package. They were destined to make big money for those that followed.
Not 1% commissions but thousands of dollars a month
Conclusion
I can’t predict the future of Amazon. They have the product range, the delivery mechanism, and a household name, so I am sure they will survive over time. However, I would be hesitant to buy shares in the short term.
Peterhanley.biz is A wonderland of business opportunities featuring a simple system designed to make $10, 000 a month
Should I sell products on Amazon by Peter Hanley?
Why I became a Fiverr affiliate