At the end of this summer, we will have concluded our third year of being in business as Paso Wine Barrels. As a tiny spec in the world of retail and not yet big enough for a storefront, we’ve tried to get our products in front of the public through a website and at arts and craft shows. We found Etsy’s online arts and craft site to be a decent way to show our wares to link-minded people, but poor customer service and in turn a battle with management ended our relationship. We’ve also used eBay and of course Google ads, but we hadn’t felt we were getting enough eyeballs on our unique wine barrel merchandise.
We seriously thought of more arts and craft and shows along with fairs and other types of festivals, however a road show that included 100 plus pound barrels being loaded and unloaded, didn’t appeal to us. And quite frankly, our sales online were easier and more profitable than selling on the road.
Amazon is by far the most powerful retailing entity there is and in part, I believed might have been controlling those eyeballs we needed, which may have been hurting our chances of more sales. Enter Amazon Handmade.
Amazon without all the costs
Essentially, it’s a online storefront for artisans and craftsmen to sell their wares through Amazon without listing fees. The reason for this arm of Amazon existing is probably to grab business from Etsy, which had the corner-on-the-market in the arts and crafts online industry.
They contacted me with an invitation, probably because I used to be an Etsy account, so we decided if you can’t beat them, join them. If you think Walmart is bad for small business, you ain’t seen nothing until Amazon gets through wailing on your ass – pardon my French. I wanted the monster on my side, so I signed us up early this year and within a month, we had more sales on Amazon Handmade than our website.
Here’s a fact or two to consider why Amazon can bring that kind of boost to sales. Over 50% of consumers say they do most of their shopping on Amazon, plus a quarter of a billion people are active users. Those are formidable numbers.
So you’re wondering if there’s a catch. Sort of. The downside to signing up with Amazon is quite formidable as well. Simply stated, Amazon makes more per item of what we sell than we do. Believe it or not, Amazon can get more than 50% cut of every sale. Acknowledging that isn’t the norm, still you can see why Jeff Bezos, the founder and CEO of Amazon, is now pushing for the top spot as the richest man in the world.
So is it worth it?
For now, it’s worth our while because we can’t get nearly as many eyeballs on our arts and craft products for our own website, than what Amazon produces.
There are stories out there saying the behemoth that is Amazon, can be slowed down. That’s not our concern right now and though business kind of comes and goes, we’ve had pretty good luck with Amazon Handmade, which is saying something in these Great Recession days.
Time will tell how long this will last … but hey, in the meantime, check out our tiny Paso Wine Barrels niche on Amazon Handmade.
Daryle W. Hier
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