Author Topic: AMZN - Amazon.com Inc.  (Read 399014 times)

mrholty

  • Jr. Member
  • **
  • Posts: 68
Re: AMZN - Amazon.com Inc.
« Reply #1960 on: November 06, 2017, 11:22:49 AM »
This is the biggest mystery for me when it comes to their inventory because an independent book publisher like MacFarland Books (http://www.mcfarlandbooks.com/) you can tell by looking at their prices they charge for individual book buys to retailers (dropshipping) that Amazon makes a healthy profit, from the ones I've checked its between 5-20% on some books and they are charging MSRP. These books get such little orders yet they have every single on in stock with Prime that its pretty obvious that they don't have these items in their warehouses but somehow Amazon gets it to you in 2 days, these specifically don't come in Amazon boxes.

That's interesting scuttlebutt... They come in the large envelopes that 3P sellers often use or something else? Where do you think they get them from? Could it just be that they come form within the Amazon logistics system but use smaller packaging because they're air-shipping them from farther away to get them in 2-days? Another benefit of leasing your own planes once you're at scale, you can do more of this just-in-time inventory juggling at lower cost than if you had to use Fedex and UPS.

They come in regular envelopes, since they are based in North Carolina thats the return address. I found them from an article because Amazon wanted them to lower their wholesale prices from 20% of MSRP, and they refused because they have a policy where they charge everyone the same.

I have to assume that they do all the packaging etc. then deliver the packages to a local Amazon warehouse and Amazon takes the rest from there. Since they have so many warehouses around the country I have a feeling thats what they do for most of these obscure products.

Incorrect.  Cameron they are doing what is called Seller Fulfilled Prime. 
When I sell on Amazon via Prime my fees are now about 30% of the average item price I sell. 
Once a seller has certain metric they can apply to an Amazon program and you can sell via prime but it comes from your warehouse.  You just have to hit the delivery window.  I know 3 guys who tried it. 2 quit as it hurt his overall metrics and 1 does it for just his state and neighboring states.


Cameron

  • Full Member
  • ***
  • Posts: 200
    • blah
Re: AMZN - Amazon.com Inc.
« Reply #1961 on: November 06, 2017, 11:39:41 AM »
This is the biggest mystery for me when it comes to their inventory because an independent book publisher like MacFarland Books (http://www.mcfarlandbooks.com/) you can tell by looking at their prices they charge for individual book buys to retailers (dropshipping) that Amazon makes a healthy profit, from the ones I've checked its between 5-20% on some books and they are charging MSRP. These books get such little orders yet they have every single on in stock with Prime that its pretty obvious that they don't have these items in their warehouses but somehow Amazon gets it to you in 2 days, these specifically don't come in Amazon boxes.

That's interesting scuttlebutt... They come in the large envelopes that 3P sellers often use or something else? Where do you think they get them from? Could it just be that they come form within the Amazon logistics system but use smaller packaging because they're air-shipping them from farther away to get them in 2-days? Another benefit of leasing your own planes once you're at scale, you can do more of this just-in-time inventory juggling at lower cost than if you had to use Fedex and UPS.

They come in regular envelopes, since they are based in North Carolina thats the return address. I found them from an article because Amazon wanted them to lower their wholesale prices from 20% of MSRP, and they refused because they have a policy where they charge everyone the same.

I have to assume that they do all the packaging etc. then deliver the packages to a local Amazon warehouse and Amazon takes the rest from there. Since they have so many warehouses around the country I have a feeling thats what they do for most of these obscure products.

Incorrect.  Cameron they are doing what is called Seller Fulfilled Prime. 
When I sell on Amazon via Prime my fees are now about 30% of the average item price I sell. 
Once a seller has certain metric they can apply to an Amazon program and you can sell via prime but it comes from your warehouse.  You just have to hit the delivery window.  I know 3 guys who tried it. 2 quit as it hurt his overall metrics and 1 does it for just his state and neighboring states.

Thats interesting, and when you do this is it shown as Amazon being the seller on the page? Or does it show yourself?

I figured it would be something different since MacFarland is a supplier and not a 3p seller.
« Last Edit: November 06, 2017, 11:51:02 AM by Cameron »

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 8961
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: AMZN - Amazon.com Inc.
« Reply #1962 on: November 06, 2017, 11:55:41 AM »
Incorrect.  Cameron they are doing what is called Seller Fulfilled Prime. 
When I sell on Amazon via Prime my fees are now about 30% of the average item price I sell. 
Once a seller has certain metric they can apply to an Amazon program and you can sell via prime but it comes from your warehouse.  You just have to hit the delivery window.  I know 3 guys who tried it. 2 quit as it hurt his overall metrics and 1 does it for just his state and neighboring states.

Thanks MrHolty. I had even read about that, but they have so many programs and initiatives that I had forgotten about it.

Another way to allow third parties to plug into the Amazon API. Makes all the sense in the world.
"Most haystacks don't even have a needle." |  I'm on Twitter  | Watch this, please

rogermunibond

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 637
Re: AMZN - Amazon.com Inc.
« Reply #1963 on: November 06, 2017, 01:00:41 PM »
Discount provided by Amazon program - cuts prices on 3rd party sellers to match online best price.  The fight for market share is real.

https://www.wsj.com/articles/amazon-snips-prices-on-other-sellers-items-ahead-of-holiday-onslaught-1509883201

mrholty

  • Jr. Member
  • **
  • Posts: 68
Re: AMZN - Amazon.com Inc.
« Reply #1964 on: November 08, 2017, 04:49:56 PM »
This is the biggest mystery for me when it comes to their inventory because an independent book publisher like MacFarland Books (http://www.mcfarlandbooks.com/) you can tell by looking at their prices they charge for individual book buys to retailers (dropshipping) that Amazon makes a healthy profit, from the ones I've checked its between 5-20% on some books and they are charging MSRP. These books get such little orders yet they have every single on in stock with Prime that its pretty obvious that they don't have these items in their warehouses but somehow Amazon gets it to you in 2 days, these specifically don't come in Amazon boxes.

That's interesting scuttlebutt... They come in the large envelopes that 3P sellers often use or something else? Where do you think they get them from? Could it just be that they come form within the Amazon logistics system but use smaller packaging because they're air-shipping them from farther away to get them in 2-days? Another benefit of leasing your own planes once you're at scale, you can do more of this just-in-time inventory juggling at lower cost than if you had to use Fedex and UPS.

They come in regular envelopes, since they are based in North Carolina thats the return address. I found them from an article because Amazon wanted them to lower their wholesale prices from 20% of MSRP, and they refused because they have a policy where they charge everyone the same.

I have to assume that they do all the packaging etc. then deliver the packages to a local Amazon warehouse and Amazon takes the rest from there. Since they have so many warehouses around the country I have a feeling thats what they do for most of these obscure products.

Incorrect.  Cameron they are doing what is called Seller Fulfilled Prime. 
When I sell on Amazon via Prime my fees are now about 30% of the average item price I sell. 
Once a seller has certain metric they can apply to an Amazon program and you can sell via prime but it comes from your warehouse.  You just have to hit the delivery window.  I know 3 guys who tried it. 2 quit as it hurt his overall metrics and 1 does it for just his state and neighboring states.

Thats interesting, and when you do this is it shown as Amazon being the seller on the page? Or does it show yourself?

I figured it would be something different since MacFarland is a supplier and not a 3p seller.

Normally it shows Amazon or the 3P sellers name.  However, I know of at least 1 agreement that Amazon has with a company where Amazon is the "seller" and they send a file 2x daily to the company who books and ships the orders.  I assume this is Amazon is doing.  (I ran into this when I tried to become an 'Amazon distributor' for them.  Lots of companies are really struggling to figure out how to work/sell on Amazon.  Amazon will not follow MAP if they are the seller and they are really a pain in the ass for brand with weird order patterns, high returns, etc.

Cameron

  • Full Member
  • ***
  • Posts: 200
    • blah
Re: AMZN - Amazon.com Inc.
« Reply #1965 on: November 08, 2017, 06:53:40 PM »
This is the biggest mystery for me when it comes to their inventory because an independent book publisher like MacFarland Books (http://www.mcfarlandbooks.com/) you can tell by looking at their prices they charge for individual book buys to retailers (dropshipping) that Amazon makes a healthy profit, from the ones I've checked its between 5-20% on some books and they are charging MSRP. These books get such little orders yet they have every single on in stock with Prime that its pretty obvious that they don't have these items in their warehouses but somehow Amazon gets it to you in 2 days, these specifically don't come in Amazon boxes.

That's interesting scuttlebutt... They come in the large envelopes that 3P sellers often use or something else? Where do you think they get them from? Could it just be that they come form within the Amazon logistics system but use smaller packaging because they're air-shipping them from farther away to get them in 2-days? Another benefit of leasing your own planes once you're at scale, you can do more of this just-in-time inventory juggling at lower cost than if you had to use Fedex and UPS.

They come in regular envelopes, since they are based in North Carolina thats the return address. I found them from an article because Amazon wanted them to lower their wholesale prices from 20% of MSRP, and they refused because they have a policy where they charge everyone the same.

I have to assume that they do all the packaging etc. then deliver the packages to a local Amazon warehouse and Amazon takes the rest from there. Since they have so many warehouses around the country I have a feeling thats what they do for most of these obscure products.

Incorrect.  Cameron they are doing what is called Seller Fulfilled Prime. 
When I sell on Amazon via Prime my fees are now about 30% of the average item price I sell. 
Once a seller has certain metric they can apply to an Amazon program and you can sell via prime but it comes from your warehouse.  You just have to hit the delivery window.  I know 3 guys who tried it. 2 quit as it hurt his overall metrics and 1 does it for just his state and neighboring states.

Thats interesting, and when you do this is it shown as Amazon being the seller on the page? Or does it show yourself?

I figured it would be something different since MacFarland is a supplier and not a 3p seller.

Normally it shows Amazon or the 3P sellers name.  However, I know of at least 1 agreement that Amazon has with a company where Amazon is the "seller" and they send a file 2x daily to the company who books and ships the orders.  I assume this is Amazon is doing.  (I ran into this when I tried to become an 'Amazon distributor' for them.  Lots of companies are really struggling to figure out how to work/sell on Amazon.  Amazon will not follow MAP if they are the seller and they are really a pain in the ass for brand with weird order patterns, high returns, etc.

Considering that Amazon truly doesn't need to stock this item to have an 11-20% profit margin I would venture to guess they have more of these agreements with sellers.

I don't remember if I mentioned it before but Wayfair does this with a network of suppliers.

LC

  • Hero Member
  • *****
  • Posts: 2035
Re: AMZN - Amazon.com Inc.
« Reply #1966 on: November 08, 2017, 07:13:03 PM »
And as long as current tax laws remain in force.

Aggressively reinvest, build a huge empire, 'lobby' the government to change their tax laws.

Changed to what? Taxing revenues?

Just saw this. I was talking about tax rates. It makes sense to defer taxes now as long as Amazon's future tax rate is the same or less.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
------------------------------------------------------------------
brk.b | khc | nke | mo | renx | c | wppgy | dis | cmp

mrholty

  • Jr. Member
  • **
  • Posts: 68
Re: AMZN - Amazon.com Inc.
« Reply #1967 on: November 09, 2017, 06:58:19 AM »
And as long as current tax laws remain in force.

Aggressively reinvest, build a huge empire, 'lobby' the government to change their tax laws.

Changed to what? Taxing revenues?

Just saw this. I was talking about tax rates. It makes sense to defer taxes now as long as Amazon's future tax rate is the same or less.

For sellers this has been issue #1 for a few years.  Beyond fee increases, changes to Amazon's buy box algorith, etc.  The 2 issues on every Amazon sellers minds are:
1.  How (When) is Amazon going to get a coherent strategy on IP claims.
2.  How can I manage what sales tax I am responsible for by state.


#2 is what we are talking about.  With regards to states Amazon's policy has always been to not collect sales tax on behalf of the 3rd party unless the 3P requests to.  Most 3P sellers only collect where they have a physical nexus (office, warehouse) and do not count where Amazon's warehouses are located.  This is because frankly its impossible to manage and once my goods hit an Amazon warehouse they move it all around.  I cannot say to them I only want to pay sales tax in these 5 states so put my goods in only those locations.  Therefore Amazon argues to states that they are simply a platform and the 3P sellers have to manage the agreements with the states.  Yet with regards to 3P sellers they argue that the customers are Amazon's and that I can't have much personal access.  Frankly they argue both ways when it is convenient.

Many states have sent letters to sellers for an amnesty program allowing them to set it tax collection in multiple states.  South Carolina has taken the lead and sued Amazon stating that the customers are Amazon's and not the 3P seller and therefore they do need to collect the revenue.  The lawsuit claims that South Carolina is owed $12.5M for Q1 2016.  On an annual basis that means the state is missing out on $60-75M.  If the money collected per state is consistent NY state is looking at a quarter of a billion $ annually.



Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 8961
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: AMZN - Amazon.com Inc.
« Reply #1968 on: November 13, 2017, 11:51:57 AM »
When Bezos asked his people to find the next Game of Thrones, they literally went back to the original well:

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2316587
"Most haystacks don't even have a needle." |  I'm on Twitter  | Watch this, please

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 8961
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
"Most haystacks don't even have a needle." |  I'm on Twitter  | Watch this, please