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The Price Of The Golden Age

Decent Essays

1) All third party platforms eventually operate the same All third party platforms (Ebay, Amazon, Craigslist) follow the same trend. The site will start small and then there will be a gold rush for sellers, during this period it will seem as if money falls from the sky. This is what I like to call the golden age. However, soon after, the platform will make adjustments to their policies and add selling restrictions. The opportunities will level out and you will eventually start to see a decline in the amount of money that sellers can make. This has happened with eBay. If you are familiar with the platform, you know that many sellers are starting to receive stricter restrictions on their accounts and many are flat out being kicked off the site. This will begin to happen with Amazon FBA. This decline happens because third party platforms have a low barrier of entry, meaning anyone can get on the site and sell items, which saturates the marketplace.

The 80/20 rule applies to all most businesses in the world including these platforms. The 80/20 rule means that 80% of a company’s sales comes from 20% of their work. For companies such as Amazon and eBay it means 20% of their resellers make up for 80% of their income. The company will soon start to focus and cater to their largest sellers. The best way to avoid this drastic drop is to start using a platform as soon as it starts to build momentum.

2) Download apps to make reselling simple
The emergence of apps has improved the

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