Originally Posted by
Gerald Boggs
Thought the entirety of history, those with power and money, have used the position m&p gave them to get more money and power, Amazon is nothing new.
No, you don't get it. I'm going to go out on a limb here and speculate you do not make your living selling your product directly to the public. Personally, I like going to craft shows and interacting with people, but craft shows are a hard, hard road to travel. There are too many shows that compete for the crowds and the organizers of the shows are taking an ever-bigger slice of the profits. The first year I was selling on Etsy, I made 10 times what I had made the year before at shows. I paid more in taxes that year, than I had ever made doing shows. Between Etsy and Amazon, I've become financially secure and it's a good feeling. So for whatever the evils of Amazon, my experience as a seller has been nothing but positive.
No, when you take in account the effect the catalog sales had on the small craftsman, the adverse effect of catalog sales was far greater. From blacksmiths to cobblers, the catalogs put them out of business and with the loss of those businesses, so to did the small towns begin to die. Let me list a few: The cobbler went from making shoes to repairing the ones you bought from Sears. Instead of making you a suit, the tailor fitted the suit you bought from Wards. The cabinet maker has mostly vanished, not able to compete with the prices of Sears.
Everyone takes a slice of your profits. The amount Amazon takes for their service is less than any show or store. Amazon takes 15% from me, if I sold through stores, the percentage is 50% and as high as 70%. Plus the time and effort to sell in person is huge. When you factor in time, effort, and return, Amazon and Etsy are the best venue for the maker.
As for selling for less, the competition can be brutal. Here's an example: When I first started selling on Etsy, I was selling railroad spikes made into hooks for $12 and I was selling them quite well. In time there was more competition, but then one guy started selling for $3. How do you deal with someone that will undercut you by that much? You don't, you live with the loss of sales and find something else to sell. In my case, I still get sales, just not as many. I did drop my price $10, but that was because my main competition dropped his to $10.