Mark Daoust says, “Amazon stores are very hot at the moment. It makes sense, given that they are the biggest marketplace on the internet with a huge in-built customer base. Just on Cyber Monday 2015 alone, there were 23 million orders. If you are an online seller, it makes perfect sense for you to have a presence there.

But anytime you place your revenues in the hands of another company, you subject yourself to both the positive and negative consequences of their actions. Ecommerce store owners who rely on strong rankings in Google could one day find that Google no longer favors their website. In the same vein, businesses that sell through Amazon’s marketplace benefit from their massive customer draw, but are also subject to Amazon’s policies.

Recently Amazon changed some of these policies, and some of their sellers will feel a pinch as a result.

FBA vs. third-party sellers.

Two of the most common business models on Amazon for sellers are their Fulfilled by Amazon (FBA) program and their third party seller program. Many of the businesses who participate in the third party seller program are arbitrageurs who utilize dropshipping to turn a quick profit”.

Here’s How Amazon is Making Their Fulfillment Businesses More Valuable

Entrepreneur

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