Why Some Merchants Are Avoiding Amazon

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While Amazon accounts for over 50% of ecommerce sales, some merchants are deciding to abandon Amazon, or not set up their brand on the platform in the first place

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Youderian says this revelation came as quite a shock. “For the first time ever in our survey, non-Amazon sellers grew faster than Amazon sellers on average,” says Youderian. March 19, 2018 Kettleman City / CA / USA - Amazon truck driving on the interstate, the large Prime logo printed on the sideThese concerns are related to the potential liability with creating nexus in states where they have FBA inventory. Software is available to make filing tax returns in multiple states easier, but it’s still time-consuming and burdensome to setup the initial accounts and then file quarterly returns in potentially dozens of states.

We don’t like the risk, we don’t like the gray-hat tactics, and Amazon being willing to kill your business at anytime. It wasn’t worth the risk.” The company was originally selling on the platform through an authorized third-party retailer.

 

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