Sell on Amazon
I think most buyers who select items on Amazon are scarcely aware that most of the product listed there is not owned by Amazon, but rather by third parties.
Amazon has built an entire ecosystem around listing third party products and even storing and shipping third party products under its Fulfilled by Amazon (FBA) program.
It has been a great move for Amazon, since they can focus on their leading distribution network and gather data on customer preferences, without investing more in product, since they are basically selling on consignment.
It has been a lucrative business for many – finding inexpensive items sold from China through Aliexpress or Alibaba, and then profiting by selling at a higher price through Amazon.
“In 2015, more than 70,000 entrepreneurs achieved over $100,000 in sales selling on Amazon”
Erik Fairleigh, Amazon
Disintermediation
That lucrative role between China and Amazon is under attack. Neither Amazon nor Chinese manufacturers are content to let potential profit rest in the hands of others indefinitely.
Amazon and Chinese manufacturers are actively pursuing a disintermediation strategy, eliminating a middleman or an intermediary by transferring or eliminating the function. Principle 2 – Taking Out.
Chinese take out
Increasingly, Chinese companies are now selling directly through Amazon, securing a larger price for their products.
basic strategy
Amazon, for its part, is securing higher margins (and crippling its competitors) by identifying, thanks to its panoptic view of all that is sold on its site, the best product categories to enter with its Amazon Basics brand.
