I am wondering if anybody in the community has experience with Amazon.com's merchant programs, and whether or not they are a boon or a negative factor to a growing e-retail business. They have been aggressively reaching out to us over the past few months and I am unsure of which way to proceed with it.
As some background, I have a small-but-growing e-commerce business, running proprietary software, with annual sales well above $1M and accelerating. Our target industry is extremely diverse in the number of products (we are at 30,000+) which is likely why Amazon is interested in our catalog, if I had to guess.
The stories I recall hearing about Amazon's marketplace programs in the past seemed overwhelmingly negative, but that was a few years ago and I have not heard anything more recently. My main concern is that we would effectively be chopping our margin in half and then competing against ourselves, so to speak. It feels like revenue would spike in the short term, but at the expense of the long term health of the business.
Am I right? Or is it worth trying out? Any other pitfalls?