Some perspective: we sell on Amazon as a 3rd party seller. Amazon takes about 9% of the sale price of our products as their commission (it’s actually 12%, but includes credit card processing). To which you might be inclined to reply, “Ah, but 9% is a reasonable commission, so that’s okay.” But we sell physical goods, which cost money to produce. It’s typical for our products to have 20-25% gross margins. So as a share of what’s left after accounting for the cost to produce and transport our products, Amazon’s commission is similar to Apple’s App Store fee.
Just something to think about if you want to argue that a 30% commission is too much for facilitating a high trust purchasing environment with customers who are ready to spend money.
Oh yeah, and you’ll never guess what Amazon’s policy is about steering customers off of Amazon.
Just something to think about if you want to argue that a 30% commission is too much for facilitating a high trust purchasing environment with customers who are ready to spend money.
Oh yeah, and you’ll never guess what Amazon’s policy is about steering customers off of Amazon.