The reasons why Amazon FBA sellers are leaving the platform in 2024

Jul 15, 2024 | Amazon FBA | 5 comments

The reasons why Amazon FBA sellers are leaving the platform in 2024




Amazon FBA, or Fulfillment by Amazon, has been a popular platform for online sellers for many years. However, in recent years, an increasing number of FBA sellers are choosing to quit the platform. This trend has been particularly noticeable in 2024, with a significant number of sellers opting to move away from Amazon FBA. So, what are the reasons behind this trend?

One of the main reasons why FBA sellers are quitting in 2024 is the increasing competition on the platform. As more and more sellers join Amazon FBA, the marketplace has become saturated with products, making it harder for sellers to stand out and make sales. This has led to many sellers finding it difficult to generate a profit and sustain their business on the platform.

Another factor contributing to FBA sellers quitting is the rising costs of selling on Amazon. Amazon charges sellers fees for using its platform, including storage fees, referral fees, and fulfillment fees. These fees have been steadily increasing over the years, cutting into sellers’ profits and making it harder for them to make a sustainable income. Additionally, changes in Amazon’s policies and algorithms have also made it more challenging for sellers to navigate the platform and succeed.

Furthermore, some sellers have expressed frustration with Amazon’s customer service and handling of seller issues. Many sellers have reported difficulties in reaching Amazon’s support team and resolving issues with their accounts or orders. This lack of support has caused some sellers to become disillusioned with the platform and opt to leave.

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In addition to these factors, some sellers are also choosing to quit Amazon FBA due to the stress and pressure of running an online business. Managing inventory, dealing with customer inquiries, and staying on top of competition can be overwhelming for some sellers, leading them to burn out and look for alternative platforms or business opportunities.

Overall, the reasons for FBA sellers quitting in 2024 are diverse and multifaceted. From increased competition and rising costs to dissatisfaction with Amazon’s policies and lack of support, sellers are facing numerous challenges on the platform. As a result, many are choosing to move away from Amazon FBA and explore other avenues for their online businesses. Whether this trend will continue in the coming years remains to be seen, but for now, it is clear that the landscape of Amazon FBA is evolving, and sellers are making decisions based on what is best for their businesses and livelihoods.


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5 Comments

  1. @peasheller

    Amazon is now moving to the Temu model. Research it. Profitability buying cheap from China and reselling has been dead for a long time. Just the returns can break most startups. I realized 10 years ago I needed to manufacture to compete. Our first product was the Kinetic Kracker. I had the parts made in the US and assembled them. Today I make cider presses, pea shellers, Kerry's Corn Creamer, 3 different hardshell nutcrackers and two different pecan crackers.

    Reply
  2. @ad03dh

    If you look into it. The fees are actually pretty crazy. And if your supplier is in China the shipping fees to amazon are a lot also. The margins are quite narrow. Especially when you start adding all the fees

    Reply

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