6 figures sales with Amazon- How do you manage risks?

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Its been couple of years since I am selling on Amazon.com. Was clueless when I started but sales are at extremely good level now, like in six figures monthly. The only thing that scares me is that the complete business depends on a third party platform- Amazon.

What if someday they decide that I can no longer sell on their platform for any reason? Or if they make any policy change which can effect my business negatively? The whole business can collapse in a day. Also, when you grow too high they start competing with you.

How do you guys manage the risks associated with Amazon business when you grow enormously? Someone suggested me to divide the business in multiple accounts- get old and clean seller accounts on rent and give account holders a share in profit. I am trying this with couple of people and so far its going good.

How all you guys who are doing huge numbers on Amazon manage your business risks?
#amazon #figures #manage #risks #sales
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  • Profile picture of the author dave_hermansen
    Set up your own site and start optimizing it and marketing it on other shopping engines (Google Shopping, Bing Shopping, BizRate, etc.). You can also set up an eBay store.
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    • Profile picture of the author webguru
      Originally Posted by dave_hermansen View Post

      Set up your own site and start optimizing it and marketing it on other shopping engines (Google Shopping, Bing Shopping, BizRate, etc.). You can also set up an eBay store.
      Thanks. But other avenues like own site, google, bing, etc. can't be compared with the volume of sales Amazon gets. Though I agree they are good to diversify. We are starting with Ebay too now.
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  • Profile picture of the author Frank Donovan
    Originally Posted by webguru View Post

    How do you guys manage the risks associated with Amazon business when you grow enormously? Someone suggested me to divide the business in multiple accounts- get old and clean seller accounts on rent and give account holders a share in profit. I am trying this with couple of people and so far its going good.
    I'd forget about the idea of renting separate accounts - that sort of ploy is for small-time sellers trying to skirt around the rules. If you're concerned about your account, get to know your Amazon account manager - with that kind of turnover, I'd be surprised if you haven't already been assigned one. Set up face-to-face meetings and get Amazon involved with your expansion plans as a partner. There are many benefits to be gained by integrating Amazon systems with your own. If you haven't already done so, look to expand into Amazon sites in other countries. There's massive growth potential there.

    You don't say what market you're in, but there'll almost certainly be some market-specific retailers you could use in addition to Amazon, as well as the obvious contenders like eBay and Etsy. You should also be operating your own retail outlet and building a dedicated customer base.
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