Re: Higgenbotham's Dark Age Hovel
Posted: Thu May 11, 2023 9:22 pm
There's one more aspect of the potential Amazon theft problem that was brought up here some time ago - the looting of packages during transit.Higgenbotham wrote: Wed May 10, 2023 12:23 pmI suspect Amazon saw the fraud in their retail business and gradually moved toward marketplace (third party sellers) partly because they could pin some of the fraud on the third party sellers rather than absorbing it themselves. I've seen third party sellers in the Amazon forums chalk up the fraud as a "cost of doing business" rather than being honest about what it really is. If (probably when) the fraud gets too much for the third party sellers to absorb, marketplace will prove to be a temporary solution for Amazon.Higgenbotham wrote: Tue May 09, 2023 8:58 pm It's hard to know what the profit margin is of Amazon's core retail business because the company doesn't break it out specifically. This is the best estimate I've been able to find.
https://www.marketplacepulse.com/articl ... arketplaceThe old retail business looks out of place in the current platforms-and-services-focused Amazon because the marketplace is more profitable, carries no inventory risk, and takes fewer employees to manage. “The marketplace generated twice the operating profit margin of the retail business—10 percent versus 5 percent, according to a person familiar with the company’s finances. In annual sales meetings, a team of 15 people overseeing a retail category would see their growth outperformed by one person from the marketplace team, the people say,” wrote Spencer Soper for Bloomberg in 2018.
Amazon likely has a significant organized retail crime problem also but they haven't admitted it so far as I know.
Not this:
https://abc7news.com/sf-organized-retai ... /12054678/
But this:
https://www.reddit.com/r/NoStupidQuesti ... r_package/
https://www.marketplacepulse.com/articl ... arketplaceAmazon continues to move away from 1P sales to 3P sellers - sellers will comprise 60% of overall units sold by the end of the year. But the shift is gradual.
In 2016 the number of products sold through the marketplace exceeded those sold by the retail team. Since then, the marketplace’s share has been growing steadily, albeit with fluctuations in some quarters, often caused by sales events or holidays when Amazon’s retail operation typically plays a more significant role.
Over the past eight years - since the marketplace overtook retail sales - sellers have been gaining 150 basis points in market share every year.
https://sellercentral.amazon.com/seller ... a1a63b9358Seller_CyGI7lF1437gx
In reply to: Seller_qa3jEvxx9StPs's post
updated 4 months ago
I would eat the costs of the returns fee and chalk up for cost of doing business.
There are literally thousands of discussions like this in the Amazon third party seller forums.
Higgenbotham wrote: Thu Jan 20, 2022 1:20 pmThis site links to several interesting videos that show the gory detail of the collapse into a new dark age.
https://twitter.com/johnschreiber/statu ... 2271760384
https://twitter.com/johnschreiber/statu ... 7767698435
"John Schreiber @johnschreiber Keep hearing of train burglaries in LA on the scanner so went to #LincolnHeights to see it all. And… there’s looted packages as far as the eye can see. Amazon packages, @UPS boxes, unused Covid tests, fishing lures, epi pens. Cargo containers left busted open on trains."