Amazon: The Trap of Being a Monopoly and What Sellers Get Wrong

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Why Playing by Amazon’s Rules Is a Losing Game—And What to Do Instead

I read an email recently that drove home how many people are still trying to figure out how to survive on Amazon.

The seller’s story was familiar: great product, strong reviews—but somehow, the competition (with worse offerings) is still winning. PPC costs are killing margins. And every payout feels smaller than it should.

The email offered a handful of fixes: optimize images, stuff more keywords into your A+ content, tweak the copy. Helpful? Maybe. But here’s the truth—

That advice doesn’t solve the real problem.

The Amazon Game Is Rigged

Amazon is a monopoly in many ways—and sellers are stuck playing its game. But here’s the uncomfortable truth: it’s a rigged game.

The Typical “Amazon Strategy”

Most Amazon advice boils down to:

  • Optimize listings with better images and SEO

  • Spend more on ads to win visibility

  • Follow trends based on tools and summits designed around Amazon’s rules

The message: adapt or die.

But that mindset keeps you stuck—dependent on a system designed to profit from you, not with you.

What They Don’t Tell You

Amazon owns your visibility. It takes a cut of your sales. It uses your data to launch competing products.

The more you optimize, the more you depend on them.

  • Every dollar spent on PPC = less margin

  • Every keyword tweak = deeper entrenchment

  • Every sale = more data Amazon uses to beat you

You don’t own your customer. Amazon does.
That’s not a sustainable business. It’s glorified wholesaling with worse margins and zero control.

How We Did It Differently at NewAir

At NewAir, we sold on Amazon—but we never let it own us.

From day one, we built our own D2C site. We invested in content that pulled in traffic organically. We connected directly with our customers. We created loyalty that no algorithm could shake.

That’s what gave us real leverage—and eventually a private equity exit. Not better PPC hacks. Not gaming Amazon’s system.

We owned the relationship. Amazon didn’t.

How to Take Back Control

If you’re building a D2C brand, stop playing defense on Amazon. Here’s what to focus on:

1. Own Your Customer Relationships

Set up your own site. Use Shopify. Collect emails and phone numbers. Use data to drive real conversations—not transactions Amazon filters.

2. Build a Community

Amazon can’t replicate connection. Share your brand story. Use social, newsletters, and loyalty programs to build long-term fans—not one-time buyers.

3. Diversify Sales Channels

Amazon can be one part of your business—but never the whole thing. Build a D2C channel. Explore niche marketplaces. Test retail if it fits. Spread your risk.

The Bottom Line

Amazon is the world’s most powerful middleman. It’s efficient. It’s dominant. And it’s dangerous if it becomes your only lifeline.

The path to real brand growth?
Take control. Build your own ecosystem. Own your customers.

That’s how I scaled and sold NewAir—and it’s how I help founders now.

If you’re tired of Amazon calling the shots and want to take back control, I’d be glad to help. Let’s build a growth strategy that puts you in charge of your business again.

👉 Let’s talk. Schedule a free call.