One of most popular solutions for small merchants to enter the world of e-commerce is on its way out. Rumors surfaced this week that the biggest online retailer Amazon will shut down its e-commerce platform for small and mid-sized merchants in 2016. So, what does it mean for the service’s thousands of customers?
It’s more than just a rumor – Amazon Webstore customers say they are now receiving emails that read “We are writing to let you know that, effective July 1, 2016, we will discontinue the Amazon Webstore service”. This means Amazon gives them 15 months to prepare. The company’s e-commerce software business was dedicated to helping small and mid-sized retailers create and run their own online shop. Its millions of customers also offered more exposure, despite the fact that the service came with a fee, which doubled in 2014.
So, how will this affect merchants?
The Webstore service may be a platform for thousands of retailers, but it didn’t actually help with marketing, nor did it provide built-in traffic. Combined with the high monthly fee ($75), it doesn’t make sense for many small merchants to keep the store, especially when they are also required to give a percentage of profit from every single item they sell. However, others relied mainly on the Webstore as it provides support and helps you create your own shop even if you are a first-timer. Many of these retailers will lose their stores, but there are other tools to sell on Amazon such as Seller Central, Product Ads, and FBA. So, there are several options, even if they have their limitations.
The shutting down of the service shouldn’t make any difference for Amazon’s customers, at least at first sight. In fact, it will for some of them. Closing the service will lead to the disappearance of certain items and brands from the website. These won’t be popular brands, but exclusive items like gourmet organic foods, handcrafted toys, certain collectables, and more unique items that you can’t find anywhere else. Now, customers won’t be able to find them on Amazon, as well.
The news hasn’t been commented by Amazon, but ChannelAdvisor (a company that helps small merchants to sell on their sites and on big marketplaces like Amazon) CEO Scot Wingo said his firm has already telling clients to start moving off of Amazon Webstore. Meanwhile, Kevin Richards, CEO of Ventura Web Design, a solution-provider with Amazon Webstore, confirmed the news on Wednesday.
