With Shopify you don't pay ~20% sales commission to Amazon per se, but you sure as heck will end up paying for that if not more to Facebook.

Where by FB has no direct incentive, yet. It could be a FB Marketplace PM team someone has already copied Shopify outright and is just waiting for the right time to roll that out to all FB user worldwide.

With Amazon Marketplace the strategy has always been to convert customers off that platform into your own.

Most top listings in most niches/categories are priced for break even inclusive of the multitudes of keyword PPC campaigns they're running with the hope that you leave a review and that you actually pay attention to the little postcard that comes inside the package asking you to register your email address.

Both games suck tbh.

I think Shopify should experiment with a centralized market place where stores can opt in. If you opt in, your store items are listed in a central location searchable in at single point, just like Amazon. Your item listing in the central market place merely directs you to YOUR branded store, allowing you to check out, and see your other products. That solves a huge problem of visibility that Amazon has mastered.

The reason they don't do this is a legal one. As a platform, they are not liable for what their sellers sell (copyright/trademark/counterfeit), but as a marketplace they would have deeper liability. A central marketplace also gives brands the ability to search through all Shopify stores, basically giving them a search engine to find infringement.

How do I know this? 10 years in ecommerce with a different ecomm platform.

That's exactly what Amazon has succeeded with: Owning the marketplace, but without any of the liabilities you mention...

They tested this at one point. I thought about it before launching weebly’s eCommerce. Sellers number one concern is sales.

I’m not sure it would be easy. Large hosting platforms like GoDaddy, Wix or Squarespace could try this too, but it puts you inherently at odds with your own customers.

If I pay you to host my site where I sell my products, but you index me into the central sales portal in a bad way, I’ll be pissed. Kind of like restaurants on Seamless.

It comes off as deep rent seeking - instead of helping me succeed, which is the real mission of most of these types of companies, you’re creating an artificially scarce resource (visibility within your central sales index) where now I have to pay you an arbitrary tax just to compete.

Immediately makes customers want to leave.

But I propose it as opt-in. If you don't want in, you aren't. It would also be entirely free, Shopify makes money on the transactions, so there are no ads but they have incentive to make you visible. I don't see how this is a negative in any way for anyone. Your store still exists in its own container, and the portal is just to drive sales to you by increasing your visibility. You could theoretically carry on your business as if this never existed within Shopify. It is basically just a giant search engine that only works across the Shopify network. If Shopify won't do it, I am near willing to bet this business model is eventually put together by someone. Wordpress.com kind of does it...but it's only with content and they don't make money on transactions. They key is that there are no ads, it's a pure search engine, the money is made from the new transaction/hosting.

GoDaddy, Wix and Squarespace couldn't really afford to do it because they aren't e-commerce focused.

> It would also be entirely free

This can’t be true, since no matter how you create the central sales channel, some sellers will get preferential treatment in terms of screen placement, appearance in search results, etc. Shopify could not pay the costs of operating and advertising that central channel unless the most successful businesses are placed more prominently and lead to higher conversions of some kind (sellers converting, leading to less churn or more subscribers, etc.). But every Shopify customer will want that - so who gets it? If you do nothing and “the rich get richer” and there’s no way for an outsider to break into the better display rankings of the sales channel, you’ll just alienate customers and see a huge drop in new subscribers. This is often a big problem for ecommerce companies that facilitate online sales portals like Amazon, eBay, Etsy, and even more niche things like Shutterstock.

You either “democratically” allow customers to pay for placement in your central product index, or you force customers to pay via lost business and lost opportunity, which they’ll be embittered by. But there’s no such thing as a “free” way to centrally index across all hosted subscribers.

> “GoDaddy, Wix and Squarespace couldn't really afford to do it because they aren't e-commerce focused.”

I think you are very unfamiliar with the hosting industry. All three of those businesses make the strong majority of revenue from subscribers of ecommerce plans and all three have huge platform offerings and nationwide advertising campaigns targeted specifically at ecommerce customers.

All three of them practically only exist (in terms of revenue) because they are a good hosting option for small businesses that sell online.

It's a very slippery slope. The portal is gonna cost money to create, and have a lot of brand value in itself. How could you ever trust that they were never gonna start charging for the portal? Or leaning on you to list in the portal.

Nah, it'll just end up being 100 copies of Alibaba postings. 90% of Shopify is BS, just dropshippers copy pasting images and texts over.

Shopify already has sales channels that users can tap into like Amazon and eBay. If they themselves build a marketplace, I'm sure those channels will opt out.

Another advantage to eBay and independent shops is that shipping is typically much faster than Amazon since the pandemic has caused Amazon’s shipping times to explode.

Facebook and Instagram do have their own checkout and are testing it

It's linked to Catalog Manager, which is a third class citizen in the FB ecosystem that they're shoehorning into being a second class. It's similar to Facebook Messenger taking Facebook Page and trying to upgrade its citizenry within the ecosystem and proclaiming it to be chatbots. That in 3 yrs flamed out and no one speaks of it anymore.

Marketplace team can do more if they can build a second class product from the get go.

Does amazon allow seller sites to have lower prices?

Just sell a "variant"

In my limited experience Amazon UK's prices are lower than the seller's/manufacturer's own website. I always check, it's always been significant when I've checked.

You could sell a variant or have a constant recycled set of promos

Not afaik.

They do... Dr. Squatch soap is one such example

Per Amazon's policy - no, the seller can not have lower prices on their own website than on Amazon. In practice, for now, it is not enforced (at least in my experience).

https://sellercentral.amazon.com/forums/t/same-price-on-webs...

most obvious alibaba or aliexpress goods on Amazon can be bought cheaper from one of the other places, and if it's a weird item (like a bicycle hub motor) it'll generally be from the same merchant group.

usually the copy/paste pictures and description are a good giveaway.

> Next time you want to buy something from Amazon, I would encourage you to find the seller's website directly or find them on eBay. eBay charges less seller fees and is not in the business of selling products directly.

Last time I bought an item off eBay, it arrived shipped via Amazon Prime. Pretty sure the seller just bought it off Amazon and shipped it to my house... it was a weird turn of events.

It wasn't a branded item, just a third-party battery replacement for a cordless phone, but still.

This is a common arbitrage tactic. Seller carries no inventory, lists multiple products on eBay for slightly higher than the Amazon price, and buys/ships from Amazon if anyone buys the eBay listing.

This happened to me, payed $110 for a ski jacket, get an amazon box and lookup the price on amazon - $80. I had to applaud the eBay seller for their hustle..

It’s a money laundering thing too.

There was a story in my area a few years ago where people had some sort of scheme to convert Amazon gift cards into cash via EBay.

I stumbled across an anonymous payment processor that accepts all kinds of shady business, like online casinos and escorts. They accept payment via gift cards to Amazon and elsewhere. Maybe this is how they convert that into cash. I was puzzled about how that would work.

This arbitrage is also good for the buyer, if they don't have an Amazon Prime account.

Sellers use Amazon FBA (Fulfilled By Amazon). Their inventory sits with Amazon and irrespective of platform where transaction happened, Amazon ships it in their own box.

The term you are looking for is “Multi Channel Fulfillment”

Re-read the first sentence -- very carefully -- of the comment you replied to.

This happened to me when we de-Amazoned, even from direct website purchases. Lots of them use Amazon for fulfillment even if they sell directly.

Amazon does have to pay. It is an opportunity cost to them.

Sure, another seller could take their spot and they are potentially losing that ad money, but with their strategy, they can price out anyone since they don't pay seller commissions either.

It's not as if seller commissions are purely an invented cost. They charge them because it's not a free service they provide, even for themselves.

shopify is collecting a lot of data for all web interactions in their customer's websites. What it does with this info, is anyone's guess. There was a pretty explosive article a few days ago in HN.

Shopify may not be amazon yet, but it is certainly learning to be that way.

I suggest you research the topic of "transfer pricing".