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what stopping a dropshippesr / manufacturers doing Amazon FBA themselves?

by Edwardo232
3 replies
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Hi all.. newbie here, got some fundamental questions. why would any manufacturer needs you to put their items on Amazon ? why don't they do it themselves and cut the middle man?
What stopping the China factories opening an US amazon account themselves and sell their products on amazon directly?

I still trying find the values we adding into this process.
#amazon #dropshippesr #fba #manufacturers #stopping
  • Profile picture of the author ZanyZebra
    Originally Posted by Edwardo232 View Post

    Hi all.. newbie here, got some fundamental questions. why would any manufacturer needs you to put their items on Amazon ? why don't they do it themselves and cut the middle man?
    What stopping the China factories opening an US amazon account themselves and sell their products on amazon directly?

    I still trying find the values we adding into this process.
    Absolutely nothing.

    However:

    1. For most Chinese manufacturers it's not their business model and skill set.

    In the same way that most Western manufacturers don't attempt to sell on amazon either.

    2. The ones who have tried it have mostly turned out to be spectacularly bad at it.

    This is because manufacturing and marketing are two completely different skill sets. Even more fundamental they are two completely different mind sets.

    Of course that's not to say that things will not somehow change but I really doubt it. Amazon has been open for Chinese manufacturers for quite some time now with no real impact being made.

    My involvement with Chinese manufacturers has been, and is, extensive through owning and managing my own large ecommerce business. They are some of the smartest business people you will come across anywhere. They know what they are good at and they know what they're bad at.

    I don't perceive any manufacturer to be a real threat on amazon (Chinese or otherwise).
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    • Profile picture of the author OnlineStoreHelp
      Many of the Chinese factories do sell on both Amazon and eBay. But if you look at, they are able to sell direct from the factory because of international postal laws that allows them to ship into the US for less than you and I can ship down the street. And yes, even lower than what Amazon pays.

      As for other manufacturers, some do open their own stores but wholesalers, distributors and even manufacturers can be very sensitive to pissing off their big customers by competing directly with them in the online space. Remember, a retailer isn't just a selling venue but handles much or all of the marketing and value add for the difference between wholesale and retail.. Many manufactures could easily sell online but rightfully, don't want to deal with everything else.
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      • Profile picture of the author diyrob
        Many manufacturers and drop shippers are on Amazon and Ebay. The key for me is to stay in certain niche products, and only buy wholesale from suppliers who are not going to be my e-commerce competition. It takes research and patience to find the right suppliers.
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