Mark Cuban On Shark Tank
Highlights
- Amazon has allowed different companies to reach a large consumer base easily.
- Mark Cuban does not approve of investing in companies selling heavily on Amazon.
- The Shark investor listed out his suggestions for tackling counterfeit issues on the online platform.
The changes in the business landscape owing to online platforms like Amazon are not second to anyone. In the past decades, several budding and established companies have moved online for increased consumer reach. While the platform has become a game-changer, Shark Tank’s Mark Cuban is against investing in such companies.
In his latest post on X, Mark described Amazon’s seller fees as ‘insane and unsustainable.’ The Shark investor even cautioned companies that if they depend excessively on the platform, they would face huge risks. He also described the reason why he does not invest in ‘Amazon-dependent’ companies.
Mark Cuban posted, “When I look at investing in companies, if you have any level of dependency on Amazon, it’s a negative.”
When I look at investing in companies, if you have any level of dependency on Amazon, its a negative. I would love to have people post what percent of sales in fees from Amazon and Walmart they are experiencing
The numbers I have seen are INSANE AND UNSUSTAINABLE.
That’s… https://t.co/i0psZcK2Le
— Mark Cuban (@mcuban) January 3, 2025
Against this backdrop, it should be noted that although Amazon allows an easy way for companies to connect with their customers, the risks of counterfeits also increase.
The Rising Cases of Counterfeits on Amazon
Over the years, the e-commerce platform has enabled third-party sellers to make record revenues. At the same time, as per a CNBC report, Amazon has also opened gates to counterfeits. Although the company has set up the Counterfeit Crimes Unit, the problem still exists.
This is because Amazon is a large platform and its reach is spread throughout the world.
Mark Cuban’s Suggestions To Save American Companies
Realizing the mounting issue of counterfeiting, Shark Tank’s Mark Cuban proposed some changes that could save American companies from knockoffs (especially the ones from China).
Firstly, the Shark investors urged that importers should be asked to pay about $25K in bonds.
Mark believed that charging the amount could help increase their financial accountability with regard to intellectual property infringement.
Secondly, Mark Cuban thought that prior to their marketing, products on Amazon should be evaluated via registration on government websites. This would help to keep a check on their authenticity. Plus, Mark suggested that retailers who were found selling counterfeit products should be charged with hefty fines.
The reason why the Shark investor proposed these changes was because implementing them would mean importers would have to pay fees. As per Mark, knockoff goods that are of low value would then be discouraged from entering the e-commerce platform.
He stressed that “these adjustments are how you get China to pay. And how you at least start to protect American companies from being knocked off.”
Mark’s Views On Amazon’s ‘Insane’ Fees
Discussing why he does not choose to invest in ‘Amazon-dependent companies,’ Mark Cuban pointed out its heavy charges for sellers. The Shark agreed that the platform does offer access to a large consumer base but noted how their profit margins fade because of these high fees.
Based on these concerns, Mark urged companies to share the amount of fees that they pay out of their revenues to Amazon. This is because the Shark investor felt that doing so would increase transparency.
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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