Local View: Selling on Amazon is our choice — because it works

From the column: "I’m happy to be selling on several platforms, but our family-owned, Minnesota-made business will suffer if Attorney General Ellison and the FTC break Amazon’s successful marketplace model."

Have you ever had a great idea and thought the entire world should know?

In 2010, after three decades building homes in Minnesota, I invented a better, less-messy caulking product. I was sure it would be a hit with contractors and homeowners, but I knew nothing about retail or marketing and I had no budget. But I had determination and persistence, and 13 years later our little company has grown to $3 million in annual sales.

Almost all of our customers buy from us online at Amazon, Home Depot, Lowes, or our own website. These stores, in addition to the products they sell, have online marketplaces where anyone can list items for sale, post photos, write descriptions, and start selling.

Today, nearly 80% of our sales is through Amazon, and the reasons are clear. Amazon provides access to the most customers, effective advertising tools to reach them, efficient warehouse and delivery services, and the Prime badge that customers trust.

What I don’t understand is why the U.S. Federal Trade Commission and our Minnesota Attorney General Keith Ellison are suing Amazon and trying to change how it operates. They clearly don’t understand that Amazon is one of the better partners ever for small sellers like me. And it is misleading for the government to claim that its lawsuit protects competition when, in reality, it would protect giants like Walmart and UPS while harming small businesses like ours.

I’m particularly perplexed by the government saying small businesses are bullied by Amazon and forced to pay ever-higher fees because we have no choice. We don’t feel bullied. Every day we decide — based on what’s best for our business — where to sell, how to price, whether and where to advertise, and how to ship products to customers.

We choose to sell on Amazon because that’s where millions of DIY homeowners shop. We choose to advertise on Amazon because almost every advertising dollar generates more dollars in revenue. We choose to use Amazon warehouse, delivery, and customer services because they save us money, guarantee Prime delivery in two days or faster, and allow us to promote our USA-made products. In addition, outsourcing these services with Amazon lets our team spend time growing our business instead of packing, labeling, and shipping orders.

To be clear, I’m a small-business founder and not an Amazon fanboy. We also love selling on Lowes.com, HomeDepot.com, and everywhere else possible and understand the benefits of having multiple online selling platforms. But, let’s face it, Amazon is the largest online-selling platform right now, and, during the pandemic, we saw a dramatic increase in sales due to our buyers being stuck at home and their easy access to our products on Amazon.

The combination retail/marketplace model works so well for Amazon that it’s been copied, and that’s why we are now able to sell in the Home Depot and Lowes marketplaces. It’s wonderful how competition works; we all win when businesses recognize consumer response and follow the leader.

I’m not sure why AG Ellison is trying to tear down Amazon and promote its competitors. Walmart is investing and catching up without needing government assistance, and if UPS can’t compete against Amazon delivery services then why should taxpayer money prop up UPS?

Every consumer wants great products for low prices, and every seller wants to showcase its products wherever consumers gather. Today, that’s Amazon. Tomorrow, it could be any one of a number of existing platforms, such as TikTok and Shopify, or perhaps a new platform that is still just an idea in somebody's head.

In January we will be in 350 big-box stores in the Midwest, and that achievement is due a lot to our success on Amazon and the access to our positive reviews and listings position.

Because I’m a determined small-business owner, I would have succeeded without Amazon, even if I needed to sell at flea markets. But Amazon made it a lot easier, faster, and more profitable. I’m happy to be selling on several platforms, but our family-owned, Minnesota-made business will suffer if Attorney General Ellison and the FTC break Amazon’s successful marketplace model.

Greg Amundson of Scandia, Minnesota is the inventor and founder of InstaTrim alternative caulking products.

Original Article Source // Duluth News Tribune