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Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses
Value to small businesses

Empowering
Small Businesses

Amazon gives small sellers access to savings and opportunities that offer tremendous value compared to traditional retailers and available alternatives. Critics’ claims against Amazon ignore these facts and the great value small businesses receive.

Below are intriguing facts that critics often overlook to suit their agenda.

Amazon Commission
vs. Retail Markup

By selling on Amazon, sellers are able to keep more profit than through traditional retailers, where products are marked up 60% – 400%.

  • Amazon Sellers Keep 85% of Sale Price (for most items)
  • Wholesalers Keep 25%-62% of Sale Price

Amazon Fees vs.
Brick-and-Mortar Retail Fees

Brick-and-mortar retailers limit access to shelf space and charge “slotting fees” for that space, limiting access for small sellers. Comparatively, the barrier to selling on Amazon is extremely low, and the fees are incredibly low compared to traditional retail.

Amazon Listing Fees

Unlimited virtual shelf space and unlimited access to Amazon customers:

  • Individual Plan: $0.99/listing sold
  • Professional Plan: $39.99/month

 

Slotting Fees

Every time a new product is launched, it requires a new slotting fee:

  • Single Store: $250 to $1,000 per item per store
  • Multi-Store/Regional Placement: $25,000 to $250,000 in high-demand stores

Amazon Ads vs.
Retail In-Store Ads

Amazon Ads

  • Clear metrics and transparency
  • Resources to maximize ads

 

In-store Ads

  • Little to no data or metrics
  • Opaque costs and effectiveness
  • No resources for wholesalers

Amazon Ads vs.
Other Online Ads

Amazon ads provide better conversion rates and lower costs per sale, including adding on the per-sale transaction, than other digital ad platforms.

Conversion Rates

  • Amazon – 10%
  • Search Engines – 3.75%
  • Display Networks – .77%

Cost Per Click

  • Amazon – $0.96
  • Search Engines – $2.69
  • Display Networks – $0.63

Warehousing, Fulfillment,
and Shipping Fees

Fulfillment by Amazon (FBA) provides immense value to small sellers, from lower shipping rates, to managed logistics, product management, warehousing, and customer service.

Amazon is 70% cheaper than premium options like USPS, UPS, FedEx comparable to FBA.

FBA provides an all-in-one fulfillment solution: managed logistics, product management, warehousing, and customer service.

Lower Shipping Rates
Managed Logistics
Product Management
Warehousing
Support Agent

Join the Fight

The FTC’s narrow focus on fees overlooks the substantial value the Amazon Marketplace offers to small sellers. Stay informed and learn more about what you can do to protect your small business.