Sellers feel the competition as FBA merchants rise 65% in one year.
First, the good news: Prime memberships are up to 20 million. As an FBA seller, these are your customers. Two things to note about this figure:
- This is the first time I’ve ever seen
- This figure is literally 7+ times more than any previously published figure (that I’ve seen).
This news has little to do with this post, I just wanted to impart some good news before the less-than-good news.
Your FBA competition has jumped 65% in the last year.
I don’t know about you, but I’ve definitely noticed all the new sellers, in a couple ways:
- Tons more bottom-feeder booksellers pricing everything at a flat $3.99 above the lowest merchant fulfilled price. There have never been so many $4.00 Prime offers in the book category. This makes it harder to price intelligently, vs desperately, the way these sellers do.
- While my overall profits were up last year, my average sales price per item dropped from $14.78 to $13.25. While not huge, its a drop of about 10%, and I think increased competition is to credit. There are simply more competing offers to price against.
More generally, there appear to be more FBA offers for every item. I’m certainly not an FBA veteran, but I do remember how few competing offers there were when I started. It seemed there was money to be made on most well-ranked items when I started with FBA, just like there was money to be made on most books in general when I started selling books on
The fools start complaining. The wise refine their game and double down.
Endnote: 2104 Update of
I just spent a marathon weekend making tons of updates to
If you purchased
Here are a few things I updated for 2014:
- Updated all shipping price figures, such as Super Saver Shipping increasing from $25 to $35, and CD and DVD shipping increasing to $3.99.
- Updated the known number of Prime subscribers to 20 million.
Amazon‘s weight based and storage fees.
- Updated section on scouting apps with all the new options available.
- Updated the obsolescence of a tactic for determining the number of items in each category, after
Amazonmade some changes.
- Updated suggested repricing methods to reflect the new option allowing the display of FBA offers only.
- Revised my editorial on all Prime customers being babies, and negative feedback going up after switching to FBA (I was wrong).
- Revised my suggested pricing strategy to account for the increase in competition.
- Tons of feedback-related updates: Issuing refunds, etc.
- Updated new figures on number of sales that happen through the Buy Box in the media category.
And tons more (including fixing 142 misspellings. Seriously.)
If you bought