Running away? More and more Amazon sellers turn to other platforms

Recently, more and more Amazon sellers have begun to reduce their investment in Amazon and turn to other platforms .

A survey released by Capterra, a subsidiary of Gartner, showed that 99% of small and medium-sized sellers currently selling on Amazon plan to start expanding into other e-commerce markets next year.

According to the survey, half of the sellers surveyed said they plan to sell products on Google Shopping, eBay and Facebook Marketplace next year. In addition, 47 % of respondents said they will sell products on Walmart 's online platform .

The survey also found that among those Amazon sellers who use FBA , only 31% of them currently have a presence on other platforms outside of Amazon . Capterra conducted a survey of 306 retail sellers who have been on Amazon for at least one year between October and November this year .

According to Marketplace Pulse , some Amazon brands are now indeed seeking to diversify their platform layout . This is partly because sellers are fed up with expensive FBA shipping fees. Amazon has increased FBA fees by more than 30% since 2020. On the other hand , some sellers choose to layout multiple platforms simply to increase sales.

Molly Burke, senior analyst at Capterra, said: " While it is normal to increase logistics costs during the holidays , Amazon's price increases are too frequent and are putting pressure on sellers to breathe . "

Burke said that by deploying multiple platforms, sellers can get more brand exposure on other platforms , reach new audiences, and save some fees , which is very attractive to small and medium-sized sellers .

It is understood that Amazon has been raising fees this year . In January , Amazon increased its FBA fulfillment fees by 5.2%. In April this year, Amazon also imposed a 5% fuel and inflation surcharge on sellers using its delivery service. This has caused some merchants to begin to doubt whether it is cost-effective to use FBA .

For Leslie Hensel , an Amazon seller who has been on the platform since 2010 and sells mainly health and beauty products, the shift in strategy is not just about higher costs.

“ A lot of the sellers we know are setting up their own Shopify stores or other platforms to diversify.”

Still, Hensel points out several reasons why sellers haven’t left Amazon entirely . First, not all platforms offer fulfillment services for sellers. If sellers want to sell products on Target Plus, Shopify, eBay, or WayFair , they must have a logistics company that can handle all shipping .

Moreover, even for those sellers who have started selling on marketplaces like Walmart , Amazon still accounts for the majority of sales , and while Walmart sales are growing, they generally account for 10% or less.

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