jwurunner - 7:26 pm on Oct 27, 2012 (gmt 0)
If your suppliers are wholesale, then they would more than likely be happy to sell Amazon. Amazon will research what vendors you source product from and contact them. They will then offer the same product for less than you and usually grab the buy box.
We had one product line where the volume was small but had good margins. Amazon figured out the vendor and took most of the profit away.
If competitors are already either selling on Amazon or advertising on Amazon with product ads then it doesn't hurt to join in as long as you realize the sales volume may be short lived.
If it a a product that Amazon has not been exposed to, then realize they will probably jump on it thus cannibalizing your sales and profits for that product.
Remember, they have deep pockets and a lot of employees, in both purchasing and merchandising, whose primary goal is to offer everything.