Challenges for Small Private Label Sellers on Amazon: Rising Costs and Competition

The dream of building a small private label brand on Amazon is facing unprecedented challenges. The capital required to start a brand has doubled, compared to the "golden age" of e-commerce when influencers promoted quick wealth. Amazon’s optimized supply chain now imposes fees at every stage—inventory placement, low/high inventory, and more—creating hurdles for sellers not fully integrated into the system. Additionally, ad costs and competitiveness have surged, making it a costly ecosystem for small sellers. Adapting to these changes and finding new, lean strategies is essential for survival in this "late-stage capitalism" Amazon environment.