# \[Fortune\] Andy Jassy says Amazon has a ‘great relationship’ with sellers. Longtime sellers say it’s ‘the worst it’s ever been’

**URL:** <https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852>\
**Category:** News for Ecomm Sellers\
**Tags:** ftc, fees, amazon\
**Created:** [April 12, 2024, 7:34pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852 "2024-04-12T19:34:06Z")\
**Posts on this page:** 20\
**Page:** 1

<div class="post-metadata">

**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\
**Post date:** [April 12, 2024, 7:34pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/1 "2024-04-12T19:34:07Z")

</div>

Amazon’s [CEO Andy Jassy’s 2023 Letter to Shareholders](https://www.aboutamazon.com/news/company-news/amazon-ceo-andy-jassy-2023-letter-to-shareholders) was released yesterday, which also saw [Mr Jassy being interviewed on CNBC](https://www.cnbc.com/2024/04/11/cnbc-exclusive-cnbc-transcript-amazon-ceo-andy-jassy-speaks-with-cnbcs-andrew-ross-sorkin-on-squawk-box-today.html). Part of that interview went thusly (excerpt edited for space):

[Details=Click for CNBC interview excerpt]

> [@](#):
>
> _SORKIN: I want to get into what you’ve done with sellers over the past year…And you now have more sellers on the platform than ever. But at the same time, you have the FTC out there saying that you are a monopoly, that one out of every $2 that a seller on the platform is getting is going back to you in the context of advertising, servicing the distribution and the like. What do you, what do you make of that?_
> 
> _JASSY: Well, I think you got to start with facts, you know? And if you look at on Amazon, over 60 percent of the units we sell are sold by third party sellers. Seller – you know, it’s not hard to actually create software to put up an e-commerce website or storefront. It’s much harder to get distribution and access to customers, which is what Amazon gives sellers. You know, our sellers on average sell about $230,000 in our marketplace. We have thousands of sellers who sell over a million dollars a year in our marketplace. So sellers are making a lot more money selling on Amazon than they could on their own. You know, then if you look at things like fulfillment by Amazon, which is our service that allows you to store your products with Amazon, we’ll pick back and ship it for you and it also is available for prime shipping, that saves sellers over 70 percent from having a do it themselves. So we – it costs money, so we charge a fee for it, but it’s much more cost effective for sellers. And while there’s always things we can be doing better for sellers and we work really hard at it, we have a great relationship with sellers._
> 
> _SORKIN: Is it a better business you think to have a third-party marketplace or to have a first party marketplace? …if you look at just the margin and the fees that that you’ve been able to accumulate from third parties, is that a better business? Is it less capital intensive? Is it more capital intensive?_
> 
> _JASSY: It’s a very good question. They’re both really interesting businesses. You know, on the – one of the main reasons that we have first party business is that it allows us to make sure for the items that customers care a lot about that otherwise wouldn’t happen, that that you can keep the prices as low as possible for customers and keep the in-stock levels the way you want. But wherever we have third party sellers who are selling, it’s always a great value proposition and you know, they sell the majority of units for us now._

[/details]

And Sellers have taken this part personally…

> [@](#):
>
> _JASSY: And while there’s always things we can be doing better for sellers and we work really hard at it, **we have a great relationship with sellers.** _

> **[Andy Jassy says Amazon has a ‘great relationship’ with sellers. Longtime...](https://fortune.com/2024/04/11/andy-jassy-shareholder-letter-amazon-seller-relationship/)**
>
> The CEO's comments alongside his annual shareholder letter come amid one of the biggest Amazon seller firestorms in the company's history.

> [@](#):
>
> _[Amazon](https://fortune.com/company/amazon-com/) CEO Andy Jassy trumpeted the benefits that the tech giant provides to online sellers in an CNBC interview on Thursday, but his comments came across as tone-deaf to some [longtime sellers who are outraged by a new slate of fees that Amazon](https://fortune.com/2024/03/16/amazon-sellers-worried-new-fees-extinction-event-analysis/) recently imposed on them._
> 
> _Independent merchants, or sellers, account for more than 60% of goods that Amazon sells through its shopping sites, but Amazon has consistently raised the cut it takes from these sellers through various fees, which accounted for $140 billion of revenue in 2024. Asked by interviewer Andrew Ross Sorkin about the Federal Trade Commission’s antitrust lawsuit regarding Amazon, which argues in part that Amazon abuses its power over these merchants, Jassy defended the way the company treats these small and midsize businesses._
> 
> _“It’s not hard to actually create software to put up an e-commerce website or storefront. It’s much harder to get distribution and access to customers, which is what Amazon gives sellers,” Jassy said, perhaps taking an indirect shot at Shopify, the e-commerce software company that is a frenemy of the tech giant._
> 
> _“Sellers are making a lot more money selling on Amazon than they could on their own,” Jassy added. “If you look at things like Fulfillment by Amazon, which is our service that allows you to store your products with Amazon, we’ll pick, pack and ship it for you and it also is available for Prime shipping… It costs money, so we charge a fee for it, but it’s much more cost-effective for sellers. And while there’s always things we can be doing better for sellers and we work really hard at it, we have a great relationship with sellers.”_
> 
> _On LinkedIn and on X, the site formerly known as Twitter, longtime sellers seemed astounded by some of Jassy’s comments, including his characterization of the company’s relationship with the small businesses selling through its site._
> 
> _“This statement was so wild I took a swig of a glass of water just so I could spit it out in surprise,” one longtime Amazon seller said on X. “Amazon’s relationship with sellers is the worst it’s ever been in my 13 years.”_
> 
> _Joe Kaziukėnas, the founder and CEO of the e-commerce research firm Marketplace Pulse, compared Jassy’s comments to a couples’ counselor that “effectively said that sellers’ concerns were invalid.”_
> 
> _“We don’t know yet if the FTC will be able to prove that Amazon is at fault but, if anything, Amazon’s communication and dialogue with sellers—that Andy says Amazon has a great relationship with—could be improved.”_
> 
> _On LinkedIn, Jon Derkits, a former Amazon corporate employee who now runs a consultancy for Amazon sellers, took issue with Jassy’s claim that sellers “are making a lot more money selling on Amazon than they could on their own.”_
> 
> _“I’m not sure how Jassy, or anyone at Amazon, would know how much sellers actually make,” Derkits said. “It seems to me that he’s conflating revenue and profit in that statement.”_
> 
> _An Amazon spokesperson did not immediately respond to a request for comment._
> 
> _There are multiple fees at the center of this year’s Amazon seller uprising. One, an “inbound placement fee” charges many sellers extra if they are unwilling to ship their inventory to at least four different Amazon warehouses, unless they sign up for a new Amazon warehousing service. (Amazon has been reorganizing its U.S. warehouse network into eight regions in recent years, to try to get more merchandise closer to more customers to speed up delivery and lower its own costs.)_
> 
> _A new “low-inventory fee” will charge sellers if they do not keep enough inventory in Amazon’s warehouses, while Amazon also charges merchants if they keep too much inventory in a warehouse for too long. This fee was supposed to go into effect on April 1, but [Amazon effectively pushed its implementation back to May](https://fortune.com/2024/04/01/amazon-low-inventory-fee-seller-fee-prime-pause/#) by making April a “transition period” to “ensure sellers better understand how or if the fee will impact them.”_
> 
> _In June, Amazon will also begin charging sellers extra fees if customers return their items at an above-average rate._
> 
> _While Amazon has also lowered some other fees simultaneously, many longtime sellers have told Fortune that the changes do not even out, and that they will be forced to either raise the prices of their goods or try to sell more through other online sites or their own e-commerce shop._
> 
> _The new fees can be especially damaging to merchants who resell other companies’ brands as well as those selling in categories with low profit margins._
> 
> _If sellers are looking for any relief in the future, the FTC may be their only bet. Fortune reported last month that [the U.S. regulatory agency is probing the new fees and their impact on sellers](https://fortune.com/2024/03/08/ftc-amazon-seller-fees-inbound-placement-low-inventory-antitrust/). At the same time, [Jassy’s writing in his annual shareholder letter](https://www.aboutamazon.com/news/company-news/amazon-ceo-andy-jassy-2023-letter-to-shareholders) published Thursday suggested that more financial pain is not out of the question for the Amazon seller community._
> 
> _“In 2023, for the first time since 2018, we reduced our cost to serve on a per unit basis globally,” Jassy said in the letter. To be precise, he said, Amazon lowered its costs per unit sold by 45 cents year over year. And looking to the future, Jassy made clear that the company is “not done lowering our cost to serve,” underling the words for emphasis._
> 
> _“We’ve challenged every closely held belief in our fulfillment network, and reevaluated every part of it, and found several areas where we believe we can lower costs even further while also delivering faster for customers,” the letter read. “Our inbound fulfillment architecture and resulting inventory placement are areas of focus in 2024, and we have optimism there’s more upside for us.”_
> 
> _For sellers, the question will be if the upside for Amazon will lead to downside for them._

---

<div class="post-metadata">

**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\
**Post date:** [April 12, 2024, 7:37pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/2 "2024-04-12T19:37:37Z")

</div>

> [@papy](#):
>
> _In June, Amazon will also begin charging sellers extra fees if customers return their items at an above-average rate._

🤔 Have we seen this announced?

---

<div class="post-metadata">

**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\
**Post date:** [April 12, 2024, 7:44pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/3 "2024-04-12T19:44:21Z")

</div>

> [@papy](#):
>
> we have a great relationship with sellers.

🤣 🤣 🤣 - That’s a good one.

> [@papy](#):
>
> Have we seen this announced?

Not that I have seen or could find. Even checked that Seller News Letter I get every week. If it was announced officially, they would have picked up on it at cruxfinder.

---

<div class="post-metadata">

**Author:** ![GGX](https://sellersasksellers.com/letter_avatar_proxy/v4/letter/g/87869e/32.png) [@GGX](https://sellersasksellers.com/u/GGX)\
**Post date:** [April 12, 2024, 7:46pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/4 "2024-04-12T19:46:38Z")

</div>

From Amazon’s perspective the relationship is great. They make money, get to dictate terms, and decide how much money they want from sellers.

And for sellers it’s “good enough” because they’re still around.

---

<div class="post-metadata">

**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\
**Post date:** [April 12, 2024, 8:04pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/5 "2024-04-12T20:04:41Z")

</div>

> [@GGX](#):
>
> And for sellers it’s “good enough” because they’re still around.

Statements like this almost suggest that the speaker knows nothing about power differentials and disproportional consequences that trap people into abusive relationships.

But _this guy_ sure gets it… 👀

> [@papy](#):
>
> _JASSY: …you know, it’s not hard to actually create software to put up an e-commerce website or storefront. It’s much harder to get distribution and access to customers, which is what Amazon gives sellers. …So **sellers are making a lot more money selling on Amazon than they could on their own.** _

It’s giving Ike Turner.

![giphy (1)](https://sellersasksellers.com/uploads/default/original/2X/f/f77b150f4123d6e20b6eeebba7b46aaf573c9906.gif)

---

<div class="post-metadata">

**Author:** ![Dogtamer](https://sellersasksellers.com/user_avatar/sellersasksellers.com/dogtamer/32/4766_2.png) [@Dogtamer](https://sellersasksellers.com/u/Dogtamer)\
**Post date:** [April 12, 2024, 8:18pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/6 "2024-04-12T20:18:29Z")

</div>

> [@papy](#):
>
> > [@papy](#):
> >
> > _In June, Amazon will also begin charging sellers extra fees if customers return their items at an above-average rate._
> 
> 🤔 Have we seen this announced?

> [@ASV\_Vites](#):
>
> Not that I have seen or could find.

It was announced 5Dec2023 in the News Headline here:

[Update to US referral and Fulfillment by Amazon fees (link)](https://sellercentral.amazon.com/gp/headlines.html?id=GF5ST3HMAHRNW2K5)

> [@](#):
>
> **"…**
> 
> Finally, we will expand the **returns processing fee** to apply to high return-rate products in all categories, excluding apparel and shoes. This fee will address the operational costs of returns and reduce waste. The returns processing fee will only apply to products that have the highest return rates relative to other products in their category and will apply starting June 1, 2024. Existing returns processing fees for apparel and shoes will remain unchanged on average. Go to the [Returns processing fee page](https://sellercentral.amazon.com/gp/help/GZGEQLTM3RZXUV6T?ref=nslp_at_GF5ST3HMAHRNW2K5_en-US_nslnk_10_GZGEQLTM3RZXUV6T) for more details.
> 
> **…"**

The applicable SHC (“Seller Help Content”) page is [2024 returns processing fee changes (link)](https://sellercentral.amazon.com/help/hub/reference/ZGEQLTM3RZXUV6T).  
It was also announced in Dharmesh Mehta’s 5Dec2023 “About Amazon” blog post here:

[https://sellingpartners.aboutamazon.com/update%20to%20us%20referral%20and%20fulfillment%20by%20amazon%20fees](https://sellingpartners.aboutamazon.com/update%20to%20us%20referral%20and%20fulfillment%20by%20amazon%20fees)

It was also referenced in Cruxfinder’s 12Dec2023 edition of Amazon Seller News #293, with the Subject Line “Brace for Higher FBA Fees in 2024” (admittedly, obliquely).

There’s a reason why I archive _everything_.

---

<div class="post-metadata">

**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\
**Post date:** [April 12, 2024, 8:22pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/7 "2024-04-12T20:22:22Z")

</div>

Nice work. I didn’t go back that far on Crux.

Amazon buried it in the fee announcement

---

<div class="post-metadata">

**Author:** ![Dogtamer](https://sellersasksellers.com/user_avatar/sellersasksellers.com/dogtamer/32/4766_2.png) [@Dogtamer](https://sellersasksellers.com/u/Dogtamer)\
**Post date:** [April 12, 2024, 8:24pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/8 "2024-04-12T20:24:59Z")

</div>

> [@ASV\_Vites](#):
>
> Amazon buried it in the fee announcement

Yepper, and the preceding paragraphs, focused primarily upon Inventory Placement & Low Inventory Level fees did a fair job of burying that particular lede.

I’ve seen a few NSFE discussions mentioning this particular sea-change, but they’ve been few and far between - something that I do not expect to be case in coming months…

---

<div class="post-metadata">

**Author:** ![GGX](https://sellersasksellers.com/letter_avatar_proxy/v4/letter/g/87869e/32.png) [@GGX](https://sellersasksellers.com/u/GGX)\
**Post date:** [April 12, 2024, 8:31pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/9 "2024-04-12T20:31:49Z")

</div>

> [@papy](#):
>
> But _this guy_ sure gets it

Of course he does, that’s why he’s the CEO. Not a ton of incentive to treat people better when they’ll tolerate it.

---

<div class="post-metadata">

**Author:** ![lake](https://sellersasksellers.com/user_avatar/sellersasksellers.com/lake/32/66_2.png) [@lake](https://sellersasksellers.com/u/lake)\
**Post date:** [April 12, 2024, 8:56pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/10 "2024-04-12T20:56:16Z")

</div>

I think Amazon has a great relationship with **sellers**. Those sellers they care about. Those sellers who choose their business relationships based on a spreadsheet.

As always, the press and the complaining sellers who the press quotes fail to recognize that in spite of the great contribution sellers make to the Amazon bottom line, there are too many of them.

Those they want, have little problem meeting these new requirements and paying these fees.

---

<div class="post-metadata">

**Author:** ![GGX](https://sellersasksellers.com/letter_avatar_proxy/v4/letter/g/87869e/32.png) [@GGX](https://sellersasksellers.com/u/GGX)\
**Post date:** [April 12, 2024, 9:15pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/11 "2024-04-12T21:15:01Z")

</div>

> [@lake](#):
>
> Those sellers who choose their business relationships based on a spreadsheet.

This is true, the sellers who whine the most are the most emotional of the bunch. Emotion and business are a bad combination. It’s like complaining about returns/scam buyers. Complaining is pointless, if the spreadsheet says a product is worth selling including costs of returns/scammers, you sell it, if the sheet says you’re losing money, stop selling it.

---

<div class="post-metadata">

**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\
**Post date:** [April 12, 2024, 9:15pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/12 "2024-04-12T21:15:28Z")

</div>

> [@GGX](#):
>
> Not a ton of incentive to treat people better when they’ll tolerate it.

And that’s exactly the point of Sellers expressing their thoughts about things like this. Walking with their dollars would obviously be best, but again, when you’re trapped, you’re trapped…so plenty of Sellers who appear outwardly content, compliant, and successful, turn to outside oversight organizations to raise flags and provide receipts.

It’s a tale as old as time. Overconfidence in your ability to get away with mistreating and disadvantaging others for your own benefit has consequences. 🤔 How many times has Rome fallen? No matter how many roads and aqueducts the Roman slaves built for conquered peoples, or how many gladiator battles or histories or theatrics entertained the subjugated, corruption and competition take down The Big Ones every time.

> [@GGX](#):
>
> that’s why he’s the CEO.

Jassy is the CEO because he said yes as Bezos was running out the door, clutching his billions. 👀

Titles (or degrees, or experience, or salary) do not equal _smarts_.

---

<div class="post-metadata">

**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\
**Post date:** [April 12, 2024, 9:17pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/13 "2024-04-12T21:17:59Z")

</div>

> [@GGX](#):
>
> Complaining is pointless, if the spreadsheet says a product is worth selling including costs of returns/scammers, you sell it, if the sheet says you’re losing money, stop selling it.

But does the sheet says you must sell it on the Amazon sales channel, or it won’t sell? 🤔

_Successful_ retail businesses do not make their success dependent on outside parties.

---

<div class="post-metadata">

**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\
**Post date:** [April 12, 2024, 9:23pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/14 "2024-04-12T21:23:34Z")

</div>

And the stock price has never been higher (not today but yesterday), so why in the world would they ever change what they do to us.

> [@papy](#):
>
> _Successful_ retail businesses do not make their success dependent on outside parties.

Right on. When you sell on marketplaces, everything - and I mean EVERYTHING, is completely out of your control or influence.

It’s a horrible way to do business but Amazon has its advantages for sellers who are willing to put in the time and put up with the BS.

It’s best to have a good combination of both (Retail / Ecomm), they compliment each other. Trying over here… Things are looking positive for us with our expansion this year outside of AMZ / WMT .coms.

---

<div class="post-metadata">

**Author:** ![GGX](https://sellersasksellers.com/letter_avatar_proxy/v4/letter/g/87869e/32.png) [@GGX](https://sellersasksellers.com/u/GGX)\
**Post date:** [April 12, 2024, 9:24pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/15 "2024-04-12T21:24:14Z")

</div>

For a lot of sellers, the numbers for selling on Amazon are a lot more favorable than through other means. Driving traffic to your own site is a huge investment, and if you’re not that well known, retail stores won’t open the door for you.

I do think that Amazon will decline someday, but not because of mistreating sellers. They’re having some pretty major issues with how they’re handling buyer customer service right now and THAT is a real problem. The big sellers are mostly fine, and the small whiny sellers can be replaced fairly easily. I don’t see companies like Pattern and AnkerDirect complaining about anything. It’s like this in all businesses. The big powerful company dictates the rules, and the small businesses have to adapt their business around the other’s.

---

<div class="post-metadata">

**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\
**Post date:** [April 12, 2024, 9:26pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/16 "2024-04-12T21:26:54Z")

</div>

> [@GGX](#):
>
> don’t see companies like Pattern and AnkerDirect complaining about anything.

⬇⬇⬇

> [@papy](#):
>
> so plenty of Sellers who appear outwardly content, compliant, and successful, turn to outside oversight organizations to raise flags and provide receipts

---

<div class="post-metadata">

**Author:** ![lake](https://sellersasksellers.com/user_avatar/sellersasksellers.com/lake/32/66_2.png) [@lake](https://sellersasksellers.com/u/lake)\
**Post date:** [April 12, 2024, 9:36pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/17 "2024-04-12T21:36:17Z")

</div>

> [@papy](#):
>
> _Successful_ retail businesses do not make their success dependent on outside parties.

Not always true. PXs on military bases are successful even though their success is dependent an outside party - the DOD.

So are Duty-Free Shops at airports.

There are contractors who run cafeterias for large corporations to serve their employees.

For many years Nine West and before them J Baker ran shoe departments for major department stores. A close analog to the Amazon/Amazon seller relationship.

I ran a company which had a close relationship with a Fortune 200 company. We supplied them with product . We sold other products which complemented their offering, and were promoted by their sales force to their customer base who ordered directly from us.

If I was willing to spend the time, I could think of other examples.

If the numbers work, it is successful. When the numbers no longer work, it is time for a different strategy.

Even stores in a mall are dependent on another party - their landlord. The landlord dictates the business hours, limits what the retailer can sell, and takes a cut of the gross sales.

Amazon has broken very little new ground other than dealing with a lot of sellers who have no business experience or sense. FBA operates close to the way a classic public warehouse does. 3P sellers are extremely similar to concessionaires like Nine West. This is why much of what outside oversight is attempting to apply are reinterpretations of existing laws.

Amazon did a great job of selling itself as an innovator, but it really isn’t one.

---

<div class="post-metadata">

**Author:** ![GGX](https://sellersasksellers.com/letter_avatar_proxy/v4/letter/g/87869e/32.png) [@GGX](https://sellersasksellers.com/u/GGX)\
**Post date:** [April 12, 2024, 9:39pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/18 "2024-04-12T21:39:03Z")

</div>

> [@ASV\_Vites](#):
>
> Things are looking positive for us with our expansion this year outside of AMZ / WMT .coms.

There’s definitely a lot of money to be made here (remember that 85% of retail is STILL brick and mortar), but as far as work and BS goes, I don’t think there’s going to be less. You WILL work your ■■■ off to be successful in this (and I’m sure you have no problem with that, which is why you can be successful at it) and deal with a ton of crap as well. Maybe the crap will be slightly more reasonable than Amazon’s crap (no morning emails like “your product has been deactivated at CVS”), but there’ll still be plenty of it. Maybe a store will take your product but put it on the bottom shelf. You want an eye level shelf or an endcap? They want money for that. They’ll also want money from you for marketing, products customers returned, etc etc. And some bean counter can always decide to drop your product (or just not accept it to begin with).

For most people trying to get into retail stores is only a pipe dream. You’re on track to do it because of connections you have from the past. If some random person goes around to retail chains trying to push their brand nobody will even talk to them.

Being in other company’s stores still puts you at the mercy of them deciding to carry your product. The benefit obviously is if you’re in 20 different chains and 1 or 2 of them drop you, it’s not big deal, but if you’re 100% Amazon and they suspend you, you’re screwed.

---

<div class="post-metadata">

**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\
**Post date:** [April 12, 2024, 9:42pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/19 "2024-04-12T21:42:02Z")

</div>

We are paying someone to deal with the crap at retail. Yes, there are risks. I spent 20 years on the other side of this equation so I totally get it.

The only thing in life that might be easy is winning a billion $ powerball jackpot. That’s even harder to do from what I hear.

There’s a reason why most people work for someone else’s business. If it were easy, everyone would do it (owning a business).

---

<div class="post-metadata">

**Author:** ![GGX](https://sellersasksellers.com/letter_avatar_proxy/v4/letter/g/87869e/32.png) [@GGX](https://sellersasksellers.com/u/GGX)\
**Post date:** [April 12, 2024, 9:48pm UTC](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852/20 "2024-04-12T21:48:11Z")

</div>

You can pay someone to manage your Amazon account too. But like the saying goes, if you want it done right you have to do it yourself. Even with whoever you hired I’m sure there’ll be no shortage of work and headaches there, at least at the beginning.

[Next page](https://sellersasksellers.com/t/fortune-andy-jassy-says-amazon-has-a-great-relationship-with-sellers-longtime-sellers-say-it-s-the-worst-it-s-ever-been/3852.md?page=2)
