amazon FBA forced-buyouts!?

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infinice
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amazon FBA forced-buyouts!?
27 Jul 2019
Recently i read a shocking little Amazon FBA newspaper sidebar, of a new regulation that claims Amazon can now, if it notices your business becoming lucrative, buy out your business, for a non-negotiable price (no more than $10000). If this is real, one would have to be nuts to build a business on Amazon.
I can find no references to it anywhere else. Is this more 'fake news'???

-A canadian who was planning to becoming a FBA seller.
Herts, England - Not specified -
Andy
Kudos: 13,304
Joined: Jan 1, 2001
Re: amazon FBA forced-buyouts!?
29 Jul 2019
Completely untrue.

Perhaps a confusion with Amazon offering its workers $10,000 to start their own delivery companies.

See www.cnbc.com/2019/05/13/amazon-will-pay-workers-10000-to-quit-form-delivery-companies.html
Andy Geldman, Web Retailer
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United States United States
RyanG
Kudos: 15
Joined: Jul 30, 2019
Re: amazon FBA forced-buyouts!?
30 Jul 2019
Is this what you are referring to?

www.wsj.com/articles/amazon-offers-sellers-a-leg-up-with-a-catch-11563452450

If so then it only applies if you sign up for the Amazon Accelerator program as some are calling it
Herts, England - Not specified -
Andy
Kudos: 13,304
Joined: Jan 1, 2001
Re: amazon FBA forced-buyouts!?
30 Jul 2019
Good catch Ryan, thanks.

Here is a non-paywalled piece on this program, with some interesting insights:

www.retaildive.com/news/wsj-amazon-entices-sellers-to-part-with-brands-for-as-low-as-10k/559121/
Andy Geldman, Web Retailer
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Subivi
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Joined: Nov 14, 2018
Re: amazon FBA forced-buyouts!?
14 Aug 2019
Hi,

I too have not heard anything of the sort, this is definitely fake news in my opinion. Andy shared an article from The Wallstreet Journal where Amazon is offering sellers to have their brands be bought for $10 k but it is not compulsory and Amazon is not forcing any sellers to part with their businesses.

In any case, I saw that you signed your note ‘A Canadian who was planning on becoming an FBA seller’. If you are still considering this, I recently wrote an article entitled ‘Top Amazon FBA questions answered: An essential guide!‘

Here are some key takeaways for Amazon FBA rookies who want to get started with FBA:

  • Open an Amazon Seller Central account - If you sell under 40 items a month choose the free ‘individual’ option. If you sell more than 40 items per month then choose the ‘pro account’ at $39.99:

  • Choose a product niche - Choose a niche based on what you have experience with or what you are passionate about. From a practical perspective, choose items which have low Amazon FBA fees associated with them (normally smaller, items stored off-season as Amazon charges based on an items size as well as the time of year an item is stored) Here is a screenshot from Amazon. This is how Amazon calculates FBA fees:

  • Source your products wisely - Find wholesalers on Alibaba at a serious markdown or consider going to local trade shows or finding local manufacturers or suppliers. Additionally, you can buy one-off lots at really good prices. Here are some 2019 trade shows:

  • Best of luck to you on your FBA journey ,

    Nadav

    Sellware
    StreetPricer
    Thompson & Holt