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Paul – FS Concierge
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Dropbear, post: 246659, member: 92330 wrote:
Glad to see this being discussed. I am in the process of launching a new webstore after using ebay alone for about 4 years. I expect I will add Amazon when it launches.

My problem is that I sell items that are much cheaper in USA. My cost of goods by the time I have them here, is only a tiny amount cheaper than the standard online store price for these items in USA. (no one sells them at RRP any more)

So I cannot compete on price. I am however the Australian distributor for the product, so in the Australian market at least, I can set an RRP that customers are willing to pay, and still have a tiny margin for myself. The postage price of these items from offshore is large enough to allow my items to be cheaper.

My question: will Amazon’s launch increase the amount of offshore sellers, who acquire the product cheaper than me and sell it to Aussie customers online undercutting the RRP I have set? I am quite vulnerable to the ‘thin margin large volume’ type sellers that traditionally base themselves in UK or US. I am afraid Amazon will be a better gateway in for these sellers than Ebay currently is due to the fulfillment centres that will be built in Australia, as it removes the proportionally high shipping cost of single items.

Cheers all.
In the absence of reliable information, I think the safest route is to expect the same types of rules that already operate with Amazon US/UK etc.

If you applied that framework to your business model, you may be able to answer some of the questions you have posed.

The great unknowns are what breadth of goods they will offer and if there will be a Prime type product and how much it will cost.

The greater the number of goods and the lower the cost of postage, the higher the chance that they will eat into other, established Aus channels.

The other big factor is what categories do well with Amazon and only you know what category you are in.

I wish you well.