In recent years, domestic and foreign retailers have become increasingly frustrated with selling products on US based mega-retailers like Amazon.

In this article we’ll cover the reasons why retailers are reducing their dependency on the mega-retailers. And then we’ll discuss a few of the many things that Nomadia Inc can do to help you build a world-class brand and give yourself more control over your sales destiny.

The Problems With the Mega-Retailers

Competition

The first major concern is the rising competition among sellers. The number of merchants on the platform has surged, leading to intense competition and price wars. It has become challenging for retailers to stand out among thousands of similar listings, which can negatively impact their sales. Moreover, this competitive environment has also given rise to counterfeit products. The mega-retailers have been working to combat this problem but still faces criticism for its difficulties in effectively tackling counterfeits, and retailers often bear the brunt of this issue. They have to contend with copycats and imitation products, which not only harm their reputation but also affect their sales and customer trust.

Policy Uncertainty

Another source of frustration stems from the risk of account suspension and listing removal. The mega-retailers maintain strict policies and guidelines that sellers must adhere to, and retailers sometimes find their accounts suspended or their listings taken down. This could be due to policy violations, intellectual property disputes, or performance issues. Such incidents disrupt the retailers’ business operations and can be challenging to resolve, leading to frustration and uncertainty.

Cultural Barriers

Language and cultural barriers also pose challenges for foreign retailers. The platform’s policies, customer support, and communication channels are primarily in English, creating difficulties for those who are not fluent in the language. The cultural differences between China, for example, and the Western markets served by the mega-retailers can further compound these challenges. This can make it harder for foreign retailers to navigate the platform effectively and resolve issues promptly, adding to their frustrations.

Review Manipulation

Moreover, many sellers both foreign and domestic have been accused of manipulating product reviews to boost their ratings and rankings. Reviews play a crucial role on Amazon and other mega-retailer marketplaces, influencing customer purchasing decisions. In response, the mega-retailers have implemented measures to crack down on review manipulation, causing frustrations among legitimate sellers who rely on honest customer feedback.

Fees and cuts

Additionally, the increasing fees and costs associated with selling on the mega-retailers have become a significant concern for retailers. The mega-retailers charge various fees, including referral fees, storage fees, and advertising fees, which can significantly impact profitability, especially for sellers operating on thin profit margins. As these fees continue to rise, Retailers may find it increasingly challenging to maintain profitability on the platform.

Despite these frustrations, many retailers continue to sell products on the mega-retail platform sites because it is challenging to break free and take on the US market without them but it can be done and our company can help guide you to success.

The Solution: Reducing Dependency on Amazon and Other Mega-Retailers

Build towards independence

To break free from mega-retailers and establish a direct presence in the US market, we will help you through several important steps. First, building an independent e-commerce website allows you to have full control over your online presence, brand image, and customer experience. By customizing the website to cater specifically to the US market, including language, design, and user experience tailored to American consumers, we can create a seamless and engaging online shopping environment.

Invest in marketing

Investing in marketing and branding is crucial to succeed in the US market. Retailers should develop a strong brand identity and marketing strategy that resonates with American consumers. This involves emphasizing product quality, innovation, and value through marketing campaigns. Leveraging social media platforms, influencer marketing, and SEO to help increase brand visibility and drive traffic to your website.

Get local

Establishing local distribution and warehousing facilities in the US is essential for retailers. By setting up these infrastructure elements, they can reduce shipping costs and delivery times. This enhances customer satisfaction and competitiveness in the market.

Customer service

Providing excellent customer service is a key aspect of establishing a direct presence in the US market. Retailers should prioritize customer support, ensuring it meets or exceeds US customer expectations. This includes offering responsive and effective customer service, clear communication, and hassle-free returns and refund policies. By delivering exceptional customer service, companies can build trust and loyalty among American consumers. Nomadia Inc can help you establish or enhance your support capabilities. We’ll work with you to define customer support touchpoints and make sure we are covered should any need arise.

Partnerships

Establishing partnerships and collaborations with local distributors, retailers, or influencers can significantly benefit foreign retailers. By collaborating with established players in the US, they can leverage their networks and distribution channels to expand their reach and credibility. These partnerships can help increase brand visibility and accelerate growth in the US market.

In Summary:

By implementing these strategies, retailers can establish a direct presence in the US market. This will reduce dependency on third-party platforms like Amazon, and forge stronger connections with American consumers.

If you’d like to chart a course away from Amazon or other mega-retailers, or even just lower your dependency on them by building your own web presence, contact us for a free consultation. The experts at Nomadia Inc will assess your situation and offer you a plan that gives you total control over your retail destiny