Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are effective strategies to compete with other sellers (like Master of Malt) for the Amazon buy box and maintain control over your product listings?
The buy box typically goes to the lowest-priced seller, but your strategy depends on which Amazon selling model you use. Here's what members have tested: **Selling model choice:** - **Amazon FBA (Fulfillment by Amazon)** — Prioritised by Amazon's algorithm over third-party sellers and gives Prime eligibility. You win the buy box if your price is lowest among FBA sellers. Members report this is the strongest position for controlling your brand and pricing. - **Amazon Vendor** — Gives you automatic buy box control (Amazon handles pricing), but you lose price control and Amazon may push you to match aggressive competitor pricing elsewhere on the web. **Tactics to maintain the buy box at better margins:** - **Price strategically above cost and let competitors match** — Rather than a race to the bottom, raise your price and add a retro (discount/rebate). Master of Malt will typically increase their price to match yours once you stop cutting, and you'll win the buy box again at the higher price point. This works because they want margin too. - **Block resellers via brand exclusivity** — You can apply to be the official seller and prevent anyone else selling your product on Amazon. The downside is Amazon requires a bespoke QR code on every pack sent via their channel, which may cost more than the margin gain. - **Opt out of Amazon's pricing algorithm** — Available but hits your sales rate significantly on Amazon, so members don't recommend it. **Margin reality check:** - If you're selling direct-to-consumer via FBA at RRP minus Amazon fees, that margin should be higher than wholesale to Master of Malt. If not, you're pricing wrong. - Selling to resellers like Master of Malt may actually yield better margin per unit than FBA after accounting for Amazon's fees (fulfillment, referral, advertising), so some members sell both channels. - Amazon only compares pricing on Amazon itself, not across external sites like eBay or your website, so you can maintain RRP elsewhere without triggering repricing. **Key caveat:** Members who've succeeded used FBA plus brand exclusivity (blocking other sellers) to avoid the race to the bottom entirely—this drove them to three #1 bestsellers. However, the QR code enforcement cost needs to pencil out against your margins.
Why are high-marketing-spend products underperforming on Amazon while lower-RSP products with no marketing spend are gaining traction?
Members have observed a recent shift in Amazon's algorithm where traditionally strong-performing products are slowing despite increased marketing spend, while lower-priced products without marketing support are outperforming. The exact cause remains unclear. **Key observations:** - High-marketing-spend products are underperforming across multiple sellers' catalogues - Lower RSP (retail selling price) products with minimal or no marketing spend are gaining algorithmic favour - Even top historical sellers have slowed down noticeably **Potential strategy if facing MoM (Marketplace Manager/competitor) buy-box pressure:** - **FBA should theoretically win the buy box** if your offer is compliant, so the focus should be on sustainable pricing rather than constant promotional spend - **MoM competitors typically price-match aggressively**, but they also increase their own prices to maintain margin when you stop lowering yours—you can regain the buy box by holding firm at a higher price point - **Selling to MoM as a wholesale partner** may earn better margins than selling via FBA after accounting for Amazon's fees, even if you lose the buy box - Note: If MoM wins the buy box and customers buy from them instead, you still make a sale as a supplier, though you lose direct customer data **Caveat:** The root cause of the algorithm shift is not definitively understood by members; this represents current observations rather than confirmed Amazon policy changes.
Should drinks brands use Amazon FBA or manage their own warehouse fulfilment for Amazon orders?
The decision depends on your operational capacity to manage Amazon's admin requirements. **Key considerations:** - **Amazon FBA** — involves significant administrative overhead for drinks deliveries; only recommended if you can automate vendor central integration with your existing fulfillment warehouse - **Self-managed warehouse fulfillment** — viable if you have the team capacity to handle Amazon's operational demands without adding major complexity Members emphasised that the deciding factor is whether you can automate the connection between Amazon Vendor Central and your own warehouse systems. If automation is possible, self-fulfillment can work; if not, the admin burden becomes substantial and you should carefully evaluate whether FBA's convenience justifies the costs for your brand.
What are the specific fees and margin impacts of selling drinks via Amazon FBA (Fulfilled By Amazon)?
Amazon FBA involves two main fee categories that collectively reduce margins significantly: - **Referral fee**: 10–15% of selling price, depending on product category - **Shipping/fulfilment fee**: Approximately 10% of selling price, dependent on item size and weight Members should expect these two fees to combine for a substantial margin reduction when calculating profitability on Amazon FBA sales. The exact referral fee percentage varies by category, so it's worth checking your specific product classification on Amazon's fee schedule. Shipping fees are particularly sensitive to package dimensions and weight, so optimising packaging can help reduce costs.
How can drinks brands set up Amazon FBA selling from EU stock locations like Amsterdam?
Members have experience selling on Amazon EU via third-party logistics providers holding stock in Amsterdam. However, the community experience highlights important differences in service quality. **Provider feedback:** - **Anker** — Members who used them report they are effective at getting stock into the Netherlands, but several warned against them: they operate a lot of grey-market inventory and lack a brand-building team. One member compared this unfavourably to working with Hammonds in the UK. **How to proceed:** Members with direct experience are willing to share contacts privately for FBA setup partners. The recommendation is to ask for personal introductions to vetted providers rather than approach unknown logistics firms, as brand control and positioning matter significantly when selling on Amazon EU.
What are the margins, costs, FBA strategy and timeline for launching a spirit on Amazon?
Members recommend working with a specialist agency rather than attempting Amazon setup independently. **Hague** (a Kindred Collective member) comes highly recommended for Amazon spirits launches and has delivered strong results for members who've used them. Reach out via direct message to discuss your specific margins, FBA strategy, costs and timeline questions—they can provide tailored guidance based on your product and business model. The community indicates this is specialist knowledge worth outsourcing to experienced operators rather than learning by trial and error.