This episode explores the challenges faced by Amazon FBA sellers, highlighting how Amazon's practices are increasingly detrimental to small businesses. Against the backdrop of rising fees, including storage and inbound placement costs, the podcast details how Amazon penalizes sellers for both overstocking and understocking inventory, creating an almost impossible-to-meet sweet spot. More significantly, the host reveals how Amazon's new Warehouse and Distribution (AWD) service, initially presented as a cost-saving alternative, has proven unreliable and expensive, especially during peak seasons. For instance, the host cites the disastrous holiday season performance of AWD, resulting in missed pickups, canceled shipments, and delayed deliveries. Furthermore, Amazon's recent policy changes, such as reducing reimbursements for lost inventory and announcing price hikes after claiming otherwise, are criticized as deceptive and financially damaging to sellers. The podcast concludes by urging sellers to diversify their business strategies, reduce reliance on Amazon, and build their own brand presence to avoid being at the mercy of Amazon's ever-changing policies.
