For ecommerce businesses beyond the $1M revenue mark, relying solely on Amazon US creates significant risk. This episode provides strategic guidance on when and how to diversify sales channels, both within other Amazon marketplaces and entirely outside the Amazon ecosystem, to build a more resilient and growth-oriented business. It emphasizes optimizing current Amazon operations before expanding and leveraging owned assets like email lists and websites for future growth.
Key takeaways
Don't diversify until your Amazon US sales exceed $1 million; optimize that channel first to
Beyond $1M in sales, begin diversification by exploring other Amazon international marketplaces to leverage existing platform familiarity.
Simultaneously build out external sales channels beyond Amazon, such as a strong DTC website and email list, to de-risk and expand reach.
A strong, user-friendly website and robust email list are crucial foundational assets, even if not immediately driving primary sales, for future diversification and direct customer relationships.
Avoid having all revenue eggs in the Amazon.com basket; platform dependency is a significant business risk that limits growth and control.
"...I think under a million dollars, personally. I don't think that you should be trying to 'squeeze that lemon' much harder until you've re ally optimized Amazon. I think once you get beyond a million dollars, give or take, in sales that's when you really need to start looking at other sales channels, whether its outside of Amazon.com and other marketplaces within Amazon or other sales channels totally outside of Amazon."- Dave Bryant on evaluating when an ecommerce business should diversify and get sales off of Amazon US Amazon US is widely regarded as the ecommerce platform to be in for sellers online. However, an ecommerce business that's growing at a steady pace will eventually be confronted with the need to expand and diversify outside of Amazon US. Dave and I both agree that ecommerce businesses below the million dollar mark should not jump into diversification too quickly. "I think under a million dollars, personally. I don't think that you should be trying to 'squeeze that lemon' much harder until you've really optimized Amazon. I think once you get beyond a million dollars, give or take, in sales that's when you really need to start looking at other sales channels, whether its outside of Amazon.com and other marketplaces within Amazon, or other sales channels totally outside of Amazon.," Dave says. However, that's not to say that online entrepreneurs earning below seven figures should not do anything to boost their Amazon profile. List building off of Amazon and having an intuitive and user-friendly website can go a long way in increasing sales. If you have reached that threshold, however; then it's time to rethink your strategy. Having all your eggs in the Amazon.com basket can be r
What does this episode say about amazon & marketplaces?
Don't diversify until your Amazon US sales exceed $1 million; optimize that channel first to
What does this episode say about dtc strategy?
Beyond $1M in sales, begin diversification by exploring other Amazon international marketplaces to leverage existing platform familiarity.
What does this episode say about retail & omnichannel?
Simultaneously build out external sales channels beyond Amazon, such as a strong DTC website and email list, to de-risk and expand reach.
What does this episode say about founder & leadership?
A strong, user-friendly website and robust email list are crucial foundational assets, even if not immediately driving primary sales, for future diversification and direct customer relationships.
What does this episode say about amazon & marketplaces?
Avoid having all revenue eggs in the Amazon.com basket; platform dependency is a significant business risk that limits growth and control.
