A few days ago, Amazon's retail sales exceeded Walmart for the first time. Amazon is supposedly in a booming stage, but sellers have been abandoning the platform and choosing to flee Amazon. Aaron Kerson, a bicycle parts seller , is a good example.
According to foreign media reports, in June this year, all products of Pacific Northwest Componen, a bicycle parts company, were removed from Amazon, which means that the company lost at least 20% to 30% of its sales.
Kerson said he has no regrets about his decision to leave the Amazon platform, because after leaving Amazon, they can not only regain direct control over customer service and returns, but also get rid of Amazon's restrictions and focus on building their own website and other channels to further strengthen their brand.
Currently, PNW's return rate has decreased and website sales are gradually increasing.
Kerson also explained the reason for withdrawing from Amazon very clearly. Since the outbreak of the COVID-19 pandemic, the bicycle industry has been hit hard. The first is the logistics supply chain problem. Since most bicycle manufacturers are in Asia, parts that originally took 45 days to arrive now take 200 days, resulting in long-term delays in goods.
In addition to logistics supply, there are also problems with storage capacity. This year, Amazon has repeatedly compressed the storage capacity of sellers, resulting in the inventory capacity being unable to meet the surging demand, which has seriously affected the development of the brand.
In addition, Amazon's inability to provide professional customer service, fraudulent returns from consumers, and the Seller fulfillment Prime program were also important reasons that forced him to flee Amazon.
It is worth noting that PNW is not the only company fleeing Amazon. In the past two years, brands such as Nike, IKEA and Birkenstock have also withdrawn from Amazon for various reasons.
In addition, Sarah Ford, a former US Marine , also withdrew her luxury boot brand Ranch Road Boots from Amazon. She said that although Amazon accounted for 50% of sales, she had to pay high advertising fees, which led to a significant reduction in profits and limited the development of the brand.
Currently, with the increasing number of Amazon platform rules, the development of many sellers has been restricted. More and more brand sellers choose to break free from Amazon's constraints and focus on building their own websites. Amazon has also gradually realized this problem and is actively taking measures to deal with the loss of brand sellers. Amazon PNW Brand sellers |
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