Amazon Commission Sucks!

byTechniSmart

1.6K followers

Updated 8 years ago

So who thinks Amazon makes too much money? I hear that all the time "Amazon pays us peanuts" bwaaa bwaa, bwaaa.

Get this, today Amazon announced, Jeff Bezos, the CEO of Amazon, just made

$29.5 Billion

for this year, and more than doubled his personal wealth on his 2014 income.

Jeff Bezos checking his portfolio (probably). - Courtesy of Flickr User James Duncan Davidson

So does Amazon pay so little in commission?

They have the lowest operating margins in the industry, and they take most of the inventory risk (they let their larger sellers store their container loads of merchandise in their warehouses for a slight fee) and Amazon takes care of the rest.

Think about it, we as Amazon Associates don't have to:

• lease huge distribution warehouses all over the country in strategic cities
• employ people all over the country 24/7.
• buy any inventory
• warehouse anything
• pay for anything
• deliver anything
• refund anything
• etc, etc (those who had brick and mortar businesses can easily continue the list)

Amazon gave us an almost certain sale with their high brand recognition and trust. We make an attractive web site, do some SEO (follow the classes) and point our visitors to Amazon to make their purchases, and your visitor become Amazon's customer.

Just last year Amazon was on shaky ground, but today it has more than doubled its share price, and so have Bezos' more than 83,000,000 shares. A company that incidentally invented its own shopping day in July called "Prime Day" and, sold 18% more merchandise than the traditional Black Friday. We all made a few sales that day :)

That's why I am OK with making 4 - 6% commission for my input, even though the 4th richest guy on the planet is our business Associate. There are many smaller, but riskier companies that pay a lot more commission, but I don't put my eggs in one Amazon shopping basket either.

OK, I'm done. Enough of my rant. I like Amazon. If it is ethical and it makes me money, I'm OK with it. It's easy business. I would never open another bricks and mortar store, stock it where my goods have to sit there wait for people come in and buy them. That's why I am with Wealthy Affiliate and putting Amazon Associate to work for me.

Have a happy and joyous Christmas,

See you @ the Top!

--Michael

"Please don't send hate mail. I'm too old for it and I don't read it any way."

(famous Judge Judy Sheindlin quote from her book: "Don't Pee on my Leg and Tell Me it's Raining"