- Patrick Muir
- On March 15, 2015
- 0 Comments
Amazon started selling two of Barney Butter SKUs this week, which has made it impossible to make a profit.
If I continue to sell Barney Butter, I will need to pivot to and create variations that are differentiated from the Amazon offering.
But the moral of the story is that it’s difficult to create a sustainable Amazon business if you don’t have a unique advantage. Reselling an existing product that Amazon or other competitors can easily sell makes it extremely difficult to make money. And if a product sells really well it is easy for Amazon to sell it themselves.
Amazon is now using my best selling Barney Butter SKU to convince people to subscribe to Prime. Amazon is not even interested in making money from selling that SKU. Instead, they’re interested in getting subscribers onto Prime and keeping them happy.
More Prime subscribers is a great thing for sellers who own their own brand or have an exclusive deal to sell a product on Amazon.