Amazon Could Strengthen the Economy by Rethinking Small Business Contracts

By Chaundra Turner, Founder Of Chatham Natural Skin Care

(small.news) — When I tell people I own a skincare company, I often get nods and silence.

When I tell them I sell on Amazon, everything changes. people immediately perk up. “Oh, you sell on Amazon?”

That single sentence explains why nearly 80% of my business revenue comes from the platform. It is why my relationship with Amazon is both a blessing and a constant source of anxiety.

Growth That Comes With Fragility

For Chatham Natural Skin Care, it has helped us scale faster than I ever could have on my own. At the same time, it has reminded me how fragile that growth can be when so much of the control lies outside your business.

Amazon gives small businesses access to millions of customers globally. Customers we would never reach through our own websites alone. That kind of exposure can be transformational.

Amazon also wins on speed. While I ship orders within 48 hours, it can still take three to five days for a customer to receive their package. Amazon can sometimes deliver within hours. In a world where convenience drives decisions, that advantage is hard to compete with.

For sellers using Fulfillment by Amazon (FBA), Amazon also handles shipping, customer service, and returns. For a small business owner juggling production, marketing, finances, and family, that support can feel like a lifeline.

When Growth Can Disappear Overnight

A product listing can be taken down without warning or explanation. Restoring it can take days or weeks. If that listing is a top seller, a business can lose hundreds or even thousands of dollars while waiting for the listing to be reinstated.

Inventory delays are also a challenge. Products can be delivered to Amazon’s warehouses, yet still take weeks to appear as available inventory. For a small business, that kind of delay disrupts cash flow and planning.

The Customer Relationship Small Businesses Don’t Own

Then there’s the customer relationship. Small business owners don’t own it. We don’t have access to customer contact information. If someone leaves a bad review or has a question, we can’t respond directly or provide context. That distance makes it difficult to build trust and loyalty. These are things small businesses depend on to survive.

Rethinking how the small business is charged. Small businesses are charged storage fees, referral fees, FBA fees, shipping fees, and advertising fees. If margins are already tight, it can sometimes be impossible to turn a profit.

Account Level Reserve and the Cash Flow Chokehold

Reevaluate Account Level Reserve. Account-Level Reserve is funds held by Amazon to ensure funds are available for refunds and chargebacks. On paper, it’s a risk management tool. In reality, it can feel like a cash flow chokehold.

Small businesses depend on consistent access to their revenue to restock, pay bills, and grow. When that money is suddenly unavailable, it doesn’t just slow growth; it creates stress, uncertainty, and vulnerability that large companies simply don’t experience in the same way. There isn’t a warning being given. The small business owner wakes up to find all their money on hold. One of my close friends had $1500 held for almost a month.

Amazon should adopt a sliding fee scale. A small business should not be charged the same fees as a nationwide company with massive volume and leverage. Treating everyone the same does not mean the system is fair.

Finally, something as simple as offering a free personal Amazon Prime account once small business sellers reach a certain threshold would be helpful.

From Platform to Partner

Amazon has been essential to my company’s growth, and I’m grateful for the opportunities it has provided. But with a few thoughtful changes, Amazon could move from being a necessary compromise for small businesses to being a true partner.

Because at the end of the day, when I tell people I sell on Amazon, they shouldn’t just hear credibility, they should hear sustainability, fairness, and a future where small businesses can grow without fear of disappearing overnight.

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