Welcome back, Product Bosses! Today, I'm talking about something that's been all over the news: 400 of Amazon's bestsellers banded together and revolted against the platform, costing Amazon more than $2 billion. Money speaks, and this story is proof. In this episode, I'm breaking down what happened, why it matters even if you don't sell on Amazon, and the one shift that protects your business no matter which sales channel changes the rules on you next.
WHAT AMAZON SELLERS REVOLTING TEACHES EVERY PRODUCT BUSINESS ABOUT OWNING YOUR CHANNELS
Here's what happened: back in April, Amazon told sellers their ad spend would start getting pulled directly from their account balance, kind of like paying back a Stripe or PayPal loan. It was the third fee change in a month, raising seller costs by three to seven percent on top of fees that already run steep: about 26% in platform fees, up from 19% in 2020, plus 40% on advertising and a 15% referral fee just to be there. Layer that onto a lower ticket product and there's almost no margin left. So sellers stopped their ad spend, cutting off a major cash flow for Amazon, and Amazon backed off and pushed the change out to give people more time. This is the risk of playing in someone else's playground: the ground can shift under you overnight, and usually you don't have the leverage to push back. This time, the sellers did.
I want to be clear, this isn't a "get off Amazon" story. I've watched brands completely change trajectory because they got access to the people who shop there. The lesson isn't to avoid rented channels, it's to never depend on only one. It's the same thing I've taught since 2017: build a brand, not just a listing, because a brand can move and a listing can't. Your email list and your website are the only channels you truly own. Everything else, Amazon, Etsy, wholesale, even social media, is borrowed land. So run the math on your own channels. If more than 40 to 50% of your revenue depends on one you don't own, that's a signal it's time to build your list and your site harder this year.
I think about a client of mine, high six figures, multi-seven-figure business, who has multiple retail locations in Texas. One of her landlords just decided to sell the building she's in, and now she's facing the choice of moving down the street or moving to another town entirely. She doesn't own the building any more than an Amazon seller owns their storefront on the platform. But because she's built her email list, she can tell her people exactly where to find her next, no matter what happens to the physical space. That's the whole point: the channel can change, the platform can change, the building can even get sold out from under you, but if you own your list, you keep your customers.
The key takeaways I want you to remember are:
Rented channels can change the rules on you overnight, and usually you have no leverage. Money speaks, and diversification is what gives you leverage.
Don't abandon a channel that's working, but don't depend on it either. Keep any single sales channel you don't own under 40 to 50% of your total revenue.
Your email list and your website are the only things you truly own. Build them consistently, especially during your busy season, so your business can move no matter what happens around it.
Product Boss, remember: you can't control what Amazon, Etsy, or any other platform decides to do next, but you can control whether your business survives it. Look at your channel mix this week, and if one channel is carrying too much weight, make building your email list the thing you protect like it's your biggest priority. Because when the ground shifts, and it will, you want a brand that can move with it.
In This Episode, You’ll Learn:
00:00 What happens when 400+ Amazon bestsellers push back against the platform?
02:15 Why building your business on someone else's platform comes with risk.
03:30 How healthy profit margins give you more flexibility when the rules change.
05:15 What Amazon’s advertising business means for sellers dealing with rising fees.
08:45 Why your business shouldn’t depend too heavily on one sales channel.
10:00 How to build a brand that can move when a sales channel changes.
11:45 How much of your business is built on rented land?
14:30 Ways to start growing your email list across different sales channels.
16:00 What happens when you have an email list but never use it?
17:45 The numbers to look at when evaluating your sales channel profitability.
20:30 How much of your revenue should come from a single sales channel.
22:00 The 2 assets every product business should keep building.
Resources + Links
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