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E418: Elite Seller and RebateKey Shutdown: Is Amazon Still "New Seller Friendly"?

The EcomCrew Ecommerce Podcast · with Steve Chou · November 9, 2021 · 57 min

Summary

Amazon has significantly shifted its policies, impacting third-party sellers through changes to rebate programs and the review system. This episode dives into whether Amazon remains a viable and fair platform for new sellers, especially considering its inherent conflict of interest as both a marketplace and a competitor. Sellers need to understand these changes to adapt their strategies and mitigate platform risk.

Key takeaways

Themes

amazon & marketplacesfounder & leadershipdtc strategy

Topics covered

amazon policy changesamazon review systemamazon seller competitionrebate programsmarketplace dynamicsthird-party sellers

Episode description

Mike, Dave, and Steve take a break from attending the Indian Wells to talk about the future of Amazon and how the ecommerce landscape is changing. Greetings from the Indian Wells Tennis Garden! On this rare occasion that Dave, Steve Chou, and myself got together, we decided to sit down and talk about all the things that have been going on in the world of Amazon and what it means to be an ecommerce seller today. In this episode, we talk about Amazon's huge policy drops on rebates and giveaways. We also give our personal takes on the current review and ranking system and why sellers and brands use rebates in the first place. We then move on to discuss Amazon's future direction in broad strokes, particularly with regards to it being both a marketplace and a seller at the same time, and how it tends to give itself an unfair advantage over third-party sellers on the platform. If you're looking to just relax and listen to a fireside chat between three ecommerce sellers who've been in the game for a while now, this is the episode for you. Timestamps: Why Amazon shut down Elite Seller and RebateKey - 7:42 The current review and rating system on the Amazon marketplace - 19:48 How Amazon creates an unfair advantage for itself over third-party sellers - 22:36 What the landscape looks l

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Frequently asked about this episode

What does this episode say about amazon & marketplaces?
Amazon's crackdown on rebate and giveaway services like Elite Seller and RebateKey signals a move towards stricter policy enforcement and a changed landscape for product launches and review generation.
What does this episode say about founder & leadership?
The current Amazon review and ranking system is under scrutiny; sellers need to focus on legitimate, policy-compliant methods for garnering social proof and improving product visibility.
What does this episode say about dtc strategy?
Amazon leveraging its data and platform insights to benefit its own retail operations creates an unfair competitive environment for third-party sellers, necessitating a focus on differentiated strategies and strong brand building off-Amazon.
What does this episode say about amazon & marketplaces?
New sellers on Amazon face a less 'friendly' environment due to increased competition and stricter policies; diversifying sales channels and building a robust off-Amazon presence are crucial for long-term success.
What does this episode say about amazon & marketplaces?
Understanding Amazon's future direction, particularly its dual role as a marketplace and a seller, is critical for anticipating policy changes and adjusting business models accordingly.

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