Small businesses lose considerable freedom when selling on e-commerce platforms

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 02, 2019, 11:02 AM UTC

Amazon has said it will charge sellers a fee of $1.99 for any products that do not comply with its new packing requirements.

This piece argues that small businesses or Amazon sellers who build their business on someone else’s e-commerce platform lose a significant amount of business freedom. For Amazon sellers, it includes additional expenses to create new packaging that meets Amazon’s new requirements.

While making sure fragile items have enough packaging, they will also have to meet Amazon’s new packaging standards or pay the e-commerce giant additional costs. Amazon demands more compact packaging, which is ready-to-ship as larger packaging leads to higher shipping costs.

However, the new packaging might affect the consumer’s product experience as packaging is an integral part of the brand experience. The author contends that companies should consider whether expanding their businesses through e-commerce platforms suits their needs.

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