Should I buy an Amazon Store?
Over the course of the last 12 months I have thought a lot about buying an e-commerce “business”. Originally, I thought buying a content site or blog would be ideal. It could make money through affiliate commissions but would also give me bargaining power when trying get wholesale deals with brand suppliers on Amazon.
Currently I am selling 6 different items on Amazon with varied success. All of these items were purchased from closeout deals or distributors that work with billion dollar companies like Hasbro. None of them were purchased directly through the brand. Ideally I would like to handle 4-5 “small” brands on Amazon. I could handle all the content, advertising, listing optimization, and inventory management. When buying closeout deals you don’t have the ability to get the experience or margins that come with the before mentioned work.
However, over the last few weeks I have begun to wonder if it would make more sense to just purchase an Amazon store. Amazon recently changed how the buy rotates so the seller account with the most reviews has the buy box regardless of the price. This has made it nearly impossible for new seller accounts “like mine” to get any sales even if I am charging the lowest price for an item. The Amazon store does not need to be profitable or even have any active products. The seller account would just need 1,000 to 5,000 reviews. That way I would actually be able to win the buy box for charging a fair price.
There are several places you can buy Amazon stores including Flippa and Empire Flippers. However, both of these marketplaces are typically selling business that are relatively stable and are profitable. A store with 200 reviews could be selling for $10,000 which is honestly more than I want to spend. Facebook groups and reddit present an interesting opportunity, but there is a much higher chance I could get scammed. Right now I don’t think I will buy an Amazon store. It might make more sense to run a promotion on a review site and lose $1,000 worth of inventory. Either way I will make sure to update this post if I decide on making a move on anything.