Amazon Didn't Grow in 2022

Amazon’s third-party sales - the Amazon marketplace - grew slowest in years too. The company doesn’t report third-party sales, only the fees it collects from the marketplace. But Amazon again increased fees last year, yet third-party revenue it collected grew slower than before. Increased fees but decreased growth mean third-party sales grew slower.


:wrench: @papy recategorized to #news-stories-and-amazon-announcements

2 Likes

Maybe if Amazon didn’t lock down FBA storage they would do a little better.

It cost our piddly shit little account a few hundred grand in 2022. Extrapolate that out and see what it equals. Spoiler Alert - A lot…

I will never understand why the limits are so tight and remain tight right now in Feb. My SAS guy was an Amazon FC guy for years and confirmed to me that the facilities are empty with floor utilization in the 40% range. In 2019 (before limits) it was 85%. During the peak of covid - 105%.

He doesn’t know what’s going on but it’s puzzling to him as well.

We know it’s not space because we all know they have overinvested in space. How can it be people if the limits are being raised 5-6X in 26 days. Makes no sense. On 3-1 are new associates just going to fall out of the sky?

Why hasn’t Amazon slowly ticked up the limit with 3-1 coming fast? Do they not understand the mad rush of shipments that will be coming all at once the first week of March?

It seems like Katie and FusionS must be running FBA

3 Likes

My guess is that each new team (read silo) is given reign on some operational functions. So with amazon announcing amazon warehousing - the push is for people who want more space to use it as a service. I think that also ties into Buy with Prime, although admittedly, I haven’t signed up for that as of yet. The risk in allowing more storage is that any gains from referral fees is net negative as amazon doesn’t really make money from fees but from advertising - from my understanding although I haven’t looked at amazons’ financials in some time.

I get all that but explain to me why, if I am a new seller, for 39 weeks, I can send 40,000,000 units of shit from Alibaba to FBA if I wanted to. No Limit.

Seasoned, proven sellers, that know what they are doing are limited but newbies can do whatever the hell they want to. That’s a signal to me that new sellers aren’t coming in at anywhere near the rate they were. New Sellers = Desperation when they find out how hard it is to compete here = more PPC $ = Profit…

I get it but it’s pretty shitty and just 1 of a million slaps in the face Amazon deals out on a daily basis to their “Valued” Selling partners. Insert what a joke…

2 Likes

Just wanted to say that I appreciate how these data were laid out and interpreted.

3P sales growth was indeed slower in 2022, and I wonder if that represents some if Amazon’s anti-counterfeiting efforts. :eyes:

3 Likes

Ha “valued selling partners” indeed! :joy:

2 Likes

It’s a money grab. If I were Amazon, I would do the same thing. It’s a business. Businesses are supposed to make money but how much are they making by screwing over sellers that sell shit that sells?

Not doing their precious customers any favors by selling them junk either.

Amazon will never die but it will never see the type of growth that it has. Nobody can compete with this beast and I won’t stop shopping on Amazon because nobody does it faster or cheaper… I get my fish tank stuff, for example, for half of what it costs in Petco. Same exact equipment / stuff from the same brands.

It pains me to support Amazon more than I already do as a seller but $ is $.

4 Likes

IMO, we are not their valued selling partners anymore. They want to be the international marketplace with no allegiance to the sellers that built them. Greed, blind ambition, a money grab to quote ASV.

Short sighted:

At least their US customers, who are catching on to the search manipulation and multiple pages of unpronounceable brand names of the exact same thing.

Are they pivoting away from US/NA buyers as the primary target?

Is Amazon Warehousing just another level of taking advantage of the overseas sellers willing to send containers here, will most of it end up in our landfills eventually.

3 Likes

Totally unrelated, but my heart springs with joy to see proper grammar.

Carry on.

4 Likes

Maybe if they didn’t have bots run wild suspending items without cause, Banning items sold at MAP as too high, etc…

They might have grown. Word is getting out, it’s not worth it to try to start to sell on Amazon anymore.

3 Likes

It’s the economy. And Jeff prior to his departure wasn’t giving Amazon his undivided attention.

Wal-Mart & Dollar General’s will benefit from this recession.

Only time will tell if Andy can turn the ship around…

Successful or not, I will bet that things will be painful for Amazon employees and investors. Likely, huge opportunity for domestic 3PS on Amazon , if they can position themselves and products correctly during all the chaos.

2 Likes

This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.