Utah-based enterprise software company Channel Precision rolled out a new $119 “Individual” subscription plan for its flagship product, 2D Transit. The change lowers barriers to access for small Amazon sellers, the vulnerable group most impacted by recent changes to Amazon policies.
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According to a 2021 Marketplace Pulse report, Amazon has over 9.7 million sellers worldwide, and over a million new sellers sign up to sell on the platform every year. Many of these sellers are small entrepreneurs reselling goods or trying to launch a private label product so they can quit their regular jobs.
“Fulfillment by Amazon” (FBA) democratizes e-commerce by allowing small sellers access to the world’s largest marketplace without the warehousing and inventory management infrastructure of larger sellers. But seller competition is fierce, and the Amazon marketplace’s rules favor larger sellers: just 1 in 10 active sellers reach $100,000 in revenue, and just one in a hundred reach $1 million.
Recent policy changes have only made it more difficult for small sellers to compete. In the last few years, Amazon has increased seller fees, decreased storage limits, and replaced organic search results and product recommendations with paid advertising spots.
One policy change, effective June 1, 2021, increased labeling and manual processing fees by 50-100%, depending on the time of year. It’s possible for sellers to avoid these fees by providing detailed carton contents information and correctly labeling products when sending them to Amazon, but this is a labor-intensive process. Large, enterprise-level sellers use third-party software tools like 2D Transit to save time and to label products in bulk. Until now, small sellers have not had access to the software at an economical price.
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This month, Channel Precision has introduced an “Individual” 2D Transit subscription plan for $119 per month. The plan allows two users (to accommodate husband-and-wife teams) to label and send up to 30 shipments to Amazon per month. It’s part of Channel Precision’s “Brand Builders” initiative to level the playing field for small sellers by expanding their access to powerful enterprise software tools.
The software could also be immensely profitable for Channel Precision, the company believes. With 1.9 million active sellers on Amazon.com and 99% of those below the $1 million revenue mark, small sellers represent a large, untapped market for third-party software providers.
With so many Americans abandoning 9-to-5 work schedules, software providers ignore gig workers, entrepreneurs, and small sellers at their peril. The future belongs to independent business owners—and to the software companies that empower them to reach their goals.