Amazon recently launched a new option for buying and selling on the site called “Make an Offer” this feature adds to the buyer’s experience by allowing them to negotiate with the seller. This experience adds yet another new layer to the online retail powerhouse.
Having an option like this means that buyers are able to barter with a seller, keeping the experience at Antique Fairs alive in the virtual marketplace. It will bring in some buyers that prefer negotiating with dealers on prices. I personally love going to my local flea market and experiencing that adrenaline rush as we agree on a price!
Matt weighed in on this and sees it as a benefit for specific situations:
Sellers who may list a collectible comic book for $1000, may be frustrated when it doesn’t sell. Now if a buyer offers, say, $750, that seller may make the sale and be perfectly happy. Before, that matching of buyers’ desires with sellers’ desires wasn’t possible.
Jason also shared his thoughts on this:
As for this change, one thing I have come to realize with consumers is there is no one way to make the most profit when it comes to pricing. There will always be the percentage of people that are bargain hunters and will love a feature like this and there are also a large percentage of people that don’t focus on cost as much.
I know firsthand that being the cheapest option for certain products has made me less profit than being the highest priced… cheaper doesn’t mean best. Rather than being worried about this, I am thinking about how it could be leveraged for certain product types that bargain hunters are shopping for. It will be interesting to see if anything comes of it.
And he advises to continue focusing on growing your business on Amazon, but you should always remember to be establishing a physical product brand. In his words, “Work smart with your business and make sure you are the one in control. Always be looking at where you are now but also where things are going.”
Matt Clark is the Chairman and Co-Founder of Amazing.com, a serial entrepreneur, and investor. He’s been featured on Forbes, CNBC, and Entrepreneur.com.