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Should you put your small business on Amazon? Long story short: no. Small businesses selling on Amazon pay exorbitant fees to sell on the platform, spend even more money on pay-to-play advertising, are forced to cede control of their brand and business practices to the mega-retailer, and end up with their products counterfeited and copycatted.
We’ve done the research; keep reading below for the receipts.
How Much Does it Actually Cost a Small Business to Sell On Amazon?
Because fees and costs vary by product type, it’s hard to calculate an average percentage per sale, but most small businesses pay15-20% of their sales to Amazon in referral fees alone, without factoring in any of the other costs associated with doing business on the platform (like those 5 fees we just mentioned!).
That’s just money. You’ll be paying in other ways, too.
You’ve poured your time, energy, heart, and savings into building a brand and products that represent your values, your ingenuity, and your unique point of view. (By the way, this audacity is one of the many things we love the very most about small business owners.)
Red Flag alert: Amazon also has access to all of your data on their platform, including pricing, the popularity of your products, and how customers interact with your brand. They use this data to directly compete with your business, allegedly creating copycat products and placing them at the top of search results.
Absolutely fuming, actually. But if you don’t like something, change it. That’s exactly what we’re doing at goodbuy. We developed the first shopping tool to put small businesses at the front and center of online shopping, reclaiming traffic, customers, and revenue. In our first 11 months, we’ve directed over $1 million away from mega-retailers.
With the goodbuy tool, your products show up on top of mega-retailer results. Shoppers start by searching their desired product on the mega-retailer of their choice, and our goodbuy widget pops up with small business alternatives.
When the shopper selects your product, they’re sent directly to your website to shop. The transaction goes through your point of sale system, is packaged and sent from your facilities, and shipping and returns are on your terms. It’s all you—your values, your vision, your profits.
goodbuy’s small biz app is on Shopify and is free to install. No hidden fees, no monthly subscriptions. We’re in this together, and we only make money when you do.
Why? Because we believe in human-ful shopping experiences and a world where small businesses thrive apart from mega-retailer costs and control. Ready to join us?