To Sell on Amazon, or Not to Sell on Amazon - There is No Question

I recently had an Amazon store. Yes, you heard me right, I started one of those drop-ship stores that sell on Amazon and lure you in with the promise "you'll make thousands of dollars a day with just a few hours a week!" Okay people, give me a little credit, I didn't believe that hype for a moment. I know there is a LOT of work that has to be done first before you can enjoy that kind of reward, if ever - and Amazon is one of the places that makes sure you can't meet that goal.

Yes, you heard me right, Amazon.com is a dream blocker. I thought having an Amazon store would be easy and would be a good boon for business. The problem is that Amazon is so particular about what they allow that it forces anyone who is just coming into the marketplace to lose their spot almost immediately. If you recently purchased anything from an Amazon "partner" then you may know what I mean - if it has been longer than 6 months they probably don't sell anymore! The average lifespan for an Amazon partner is about 4 months. This is because it takes about 3 months to get a full inventory of over 2,000 products listed (8-12 hours a day working to put everything in) and then get your orders and problems going.

It is also because Amazon will hold the funds in your seller account for at least 14 days from the day you startup as a seller - they don't tell you this when you start, just after you have your first sale. Usually they will hold all payments for 30 days, making up some ridiculous excuse about poor selling in order to justify the longer holds. This means if you are purchasing your products from a drop-shipper you had better have a significant savings or you will be issuing hundreds of refunds because you won't be able to send out the product on time. Amazon is a big stickler for the 48-hour shipping rule; if you can't ship it in 48 hours you lose the sale AND you get a negative mark on your seller account. Because of this rule it is common for sellers to start by selling items like they would on ebay - just a few things they have around the house. Once the seller funds are released then they can add in the inventory from the drop-shipper. Even worse, Amazon is now starting the "pay when ship" rule - the buyer's funds are held in escrow until you confirm the product has been shipped; then Amazon releases your funds to your seller account. It then takes 5-10 Business days for the money to reach your bank account!

My lifespan was only 3 months because I worked extra long to get everything listed quickly. I only listed books and other things from around my house at first to establish myself as a seller. I used that time to list my drop-shipper's items but listed them as "temporarily sold out" so that no one could buy them - but when the time came I could mass list them as back in stock. After my 30 day hold I started getting lots of orders right away. My first 10 orders came back without any problems and everyone said the product was as described and arrived sooner than expected. I was hyped that this just might work out after all and started working on my ebay store since my Amazon inventory was completed.

My next few orders were the beginning of my nightmare. 48 hours after two people put in their orders they contacted me and said the orders were fraudulent and that I needed to cancel them - big mistake. If you refund an order, even at the buyer's request, then Amazon thinks it is because of poor seller performance. I even contacted Amazon to find out if there was a way for the buyer to cancel these fraudulent orders themselves and never received a response. I purchased something from Amazon shortly after and got my answer that way, but I had already refunded the orders as requested by buyer. It is such a shame that a company with such high service expectations from buyers has no customer service for the sellers. Trust me, this story gets worse.

I then had 3 buyers that demanded refunds without having to return the product. My return policy stated that I would offer a full refund or exchange for anything received that didn't work. If the buyer received the item and expected something different (not the wrong product but they expected something new and got refurbished) then I would offer a 50% discount if the listing was clear what was to be sent. I actually had someone want a full refund because they got a refurbished CD player and they expected a new CD/radio unit. Worse yet, once I noted this to Amazon they actually gave the person the full refund - without demanding the unit be returned - then charged my account for it!

To say the least I found my selling experience through Amazon.com to be a most unfulfilling and horrendous time, I have cancelled my seller's account and demanded a refund of all fees I was charged the last month. Unsurprising I have not seen those funds nor received a response to my closure. I have, however, noticed I am still being charged monthly website hosting fees for a webstore that is supposed to be closed!

While ebay is more expensive and definitely harder to maintain the inventory I have found that I have very few problems from people who purchase on ebay. It is very clear whether the product is new or factory refurbished. There is an accurate picture and description (yes it takes longer to put all this in, but at least I KNOW it is accurate). Most importantly, I get fast and accurate responses from ebay support when I have a question or problem. So, to all those who have dreams of buying and selling through Amazon I advise you to think twice. I promise you that I am not the only person who has had these kinds of problems - I'm just the only one willing to bring this to light and suffer whatever consequences might come. I took a look back at some of my previous purchases and those of family members and I looked up the partner stores that they were bought from - of 25 stores only 4 are still in business!Some did like me and moved over to ebay or were able to open a store of their own with self hosting; but most I have not found at all.

At least for sellers you would do well to watch your P's and Q's very closely and make sure you follow every piece of advice here. Most of this you will not find in their rules and agreements - just experience is the only way to know. If you buy on Amazon do not think that just because they have thousands of feedback scores that they are a good seller - most likely they started their store before all these harsh and undisciplined rules were put into place and therefore fall through the cracks that are now sealed up for new sellers. I understand that breaking into sales on such a well established site is difficult, but there is absolutely no reason for this kind of insensitivity and cruelty and blatant disregard for the rules that Amazon has made a standard operating procedure these last few years.