Amazon's Direct-from-China Plan Criticized

We asked industry pros to comment on Amazon's plan to create a new section for Chinese sellers to ship directly to U.S. customers. It's a bad idea, according to Phil Masiello, CEO of CrunchGrowth Revenue Acceleration Agency and a longtime Amazon seller and founder of multiple ecommerce companies. Sellers and brands have been fighting with Amazon against cheap fakes from China for years. Masiello believes the move will cost Amazon, where quality sellers face increasing fees - about 50% of sales go to Amazon. "Amazon continues to aggressively pursue overseas manufacturers and make it easier for them to become consumer brands themselves," James Thomson, managing partner at Equity Value Advisors and a former Amazon executive, said. "In many categories, U.S.-based brands on Amazon are sourcing stuff overseas and now competing against their manufacturers. Amazon's enabling them." "As Amazon goes after lower cost options, it's harder for small brands in the United States to do well," Thomson said.