Amazon Businesses in ETA: Risk or Reward?

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June 28, 2025

by a searcher from Duke University - The Fuqua School of Business in Atlanta, GA, USA

Hi Everyone, I'm trying to get a pulse on Amazon-based businesses and the general sentiment in the ETA community. Are Amazon-based businesses (FBA or differentiated product models) worth the chase—or too risky to touch? Thinking through supply chain reliance, platform risk, and margins. Would love to hear how the ETA community views these plays
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Reply by a searcher
in Honolulu, HI, USA
I actually come from the "Amazon business" world. Had my own Amazon based business for a few years. If the business is solely on Amazon, you're at the mercy of their algorithm. My business got wiped out by Chinese manufacturers listing their own copycat products and lowering and lowering the price to the point the unit economics didn't work out anymore. Of course you can still be successful, but if you didn't come from that world "you don't know what you don't know" so tread carefully. Message me if you have any questions!
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Reply by a searcher
from Northeastern University in Boca Raton, FL, USA
I'll echo what ^redacted‌ said, I was in this space for a bit and it's difficult, to say the least, they are very hard on sellers, they always side with the customer so as not to upset the customer with Amazon, they don't care you about you. Then the copycat concern is real, including from Amazon itself! If you have a successful product, they've been known to knock it off in China under Amazon Basics brand. In my experience you're much better off investing in your own website and then, once established, supplement with Amazon, but do not let Amazon be your only option, that's risky. Feel free to reach out if you have more questions!
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