"This summer, POKS Spices announced a somber business update on Instagram: After nine years of building a dedicated following on its own website, the West African seasoning company had decided to shift all product sales to Amazon. The choice is one many small entrepreneurs must make to survive-either stake their entire future on the e-commerce giant or shut down entirely."
"Why exactly is the deal so punishing? While Amazon sales may be enough to stay afloat, placing all its seasonings into one virtual storefront can hamstring a fledgling business in the long term. According to the POKS representative, despite listing products at higher prices compared to a brand's website or even a brick-and-mortar location, "Amazon in itself eats into your margins." They say that between warehousing, listing,"
POKS Spices shifted all product sales to Amazon after nine years of selling through its own website. The company experienced a large drop in website traffic beginning October 2024 and falling sales for its three seasonings over the next four months while Amazon purchases remained steady. Peers in the Consumer Packaged Goods industry reported similar declines, forcing POKS to rely solely on Amazon's reach. Selling only on Amazon can reduce long-term prospects by squeezing margins through fees and operational costs. Consolidating sales on a single marketplace can provide immediate revenue but creates dependency and limits control.
Read at Bon Appetit
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