What are the realistic pros and cons of selling spirits and beverages on Amazon?
Amazon makes your brand available to a huge customer base and can offer cheaper shipping than managing your own 3PL, but profitability is challenging and requires significant sustained spend on advertising and promotions. Members have learned hard lessons about the platform's dynamics.
**Pros:** - **Wide reach** — puts your brand in front of millions of potential customers automatically - **Shipping economics** — can be cheaper than managing your own third-party logistics for individual orders - **Organic traffic from external brand-building** — members report that investing in consumer awareness outside Amazon (direct marketing, PR, social) drives profitable organic sales *on* Amazon without needing to throw cash at Amazon's own ad platform
**Cons:** - **High advertising costs required** — you must spend heavily on Amazon's promotional tools and media to achieve meaningful volume; members report struggling to make Amazon profitable even with ad investment - **Amazon holds all the cards** — the platform controls pricing, visibility, fees, and policies in ways that can surprise you after launch; members describe "some you didn't know existed before you started" - **Very tricky unit economics** — multiple members noted they've never been able to make Amazon profitable and have actually pulled advertising spend entirely - **Brand values misalignment** — Amazon's working practices can clash with independent drinks brands' values
**Key strategy:** The one member reporting strong Amazon profitability said their biggest win was **building direct consumer brand awareness away from the platform**, which then organically drove profitable sales on Amazon without relying on Amazon's own ads. This approach also builds a direct customer relationship outside the platform.
Members emphasise that Amazon is a big customer for many (hard to ignore) but universally describe it as tricky to make work profitably. Several have formed a discussion group to share learnings and mistakes to avoid.
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