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Sun Oct 23 2016 19:53:43

One Reason Amazon Is Cracking Down on Sellers

By: Ina Steiner

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Is Amazon responsible if vendors or third-party merchants list counterfeits on its site? At a minimum, its reputation is at stake, which may explain in part why Amazon has been cracking down on sellers since the summer with a variety of policies changes and practices.

This month, Apple filed a lawsuit against a maker of so-called genuine Apple accessories which allegedly supplied Amazon with the products. AppleInsider has the details of the case in its article, "Apple claims huge swaths of "genuine" accessories on Amazon are counterfeit in new lawsuit."

Amazon told AppleInsider it has zero tolerance for the sale of counterfeits on its site.

In this case, Amazon allegedly sourced the goods from the supplier and sold them on its marketplace. But the issues raised by the case could easily apply to sellers. 

Amazon has seen strong growth in 3P sales - and third-party merchants now account for about half of its unit sales. But Amazon must balance growth with consumer trust, which is a key competitive advantage for the marketplace.

While Apple is suing the supplier, the lawsuit is a public-relations black eye for Amazon. How well do you think Amazon handles the problem of counterfeit goods, and does it do a good job of responding to complaints? And how does that compare with other marketplace such as eBay?

Merchants might also want to ask themselves how well they are vetting their own suppliers.




Comments (5) | Permalink

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One Reason Amazon Is Cracking Down on Sellers   One Reason Amazon Is Cracking Down on Sellers

by: Kory Luke This user has validated their user name.

Sun Oct 23 23:54:38 2016

Amazon's Statement to AppleInsider that it has zero tolerance for the sale of counterfeits on its site. Is a complete lie. I am a brand owner and have reported counterfeiters selling my brand on Amazon multiple times. Counterfieters claim to be selling my Made in the USA product and Brand but are shipping a poor quality replica from China. Each time I report them to Amazon, I get an identical form letter response from that they do not get involved in such disputes. Amazon Seller forums have many examples of smaller brand owners complaining about this "not our problem" response from Amazon about counterfeiters. Apple should note these examples in their case to prove Amazon is completely lying about this bogus "zero tolerance" policy. Amazon only puts on their "we care" face if a big Brand complains and lawyers up.  

One Reason Amazon Is Cracking Down on Sellers   One Reason Amazon Is Cracking Down on Sellers

by: cwpdist This user has validated their user name.

Mon Oct 24 01:01:54 2016

As a buyer on Amazon, I have stopped purchasing curtain products on Amazon because of the problem of receiving counterfeits. Several of the product listings have reviews saying they are counterfeits and the listing are not removed by Amazon. To make the problem even bigger, it seems the counterfeit product sellers also include some genuine products to confuse the buyers and Amazon.

One Reason Amazon Is Cracking Down on Sellers   One Reason Amazon Is Cracking Down on Sellers

by: ignatz This user has validated their user name.

Mon Oct 24 09:37:37 2016

We're going back to selling only books on Amazon.  It's how we started there and we never had a DAY of trouble.  Everything else we'll move to ebay, etsy, bonanza and maybe craigslist for the bigger stuff, to start anyway.

One Reason Amazon Is Cracking Down on Sellers   One Reason Amazon Is Cracking Down on Sellers

by: Moonwishes This user has validated their user name.
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Mon Oct 24 12:21:39 2016

Of course there are all sorts of counterfeiters hawking their goods on Amazon and if Amazon would use the minimum of logic and common sense they could shut many of them down immediately.

Case in point. I sell sewing patterns, many of which go out of print in 6-12 months. Some will last for a year or two and a very few for years. So I am listing my goods and run up against a seller that has suddenly become a pattern seller, plus other assorted goods over night. As in no time flat they have 20-25K listings up and active. Many of them are sewing patterns. Most of those patterns that they suddenly came upon are out of print patterns and no longer available from the manufacturer. So where do they get them? Unless they are drop shipping them, they have to somehow make them up themselves or they have no product, wait for sales to come in and never ship and then disappear when the complaints get started. Then they magically reappear as a new seller and start the thing all over again. Amazon could nip this in the bud simply by limiting how many listings (perhaps 500) a newbie can put up in their first six months until they have proved themselves.

I ran up against a case of an OOP pattern the other day that when I went to list the last few remaining ones that I had been able to scrounge there was something like 10+ Japanese sellers all with listings for that pattern. I had never seen them selling any other pattern prior to that day, so where did they get this hard to find pattern and why did they pick that particular pattern to either be drop shipping or counterfeiting as the pattern is mae in the USA and I doubt that there is a printing plant for just the one pattern in Japan.

Even if my examples aren't counterfeiting, but guys rolling the dice thinking they will get the order and just drop ship it, there are signals they send off that Amazon should have they looked at by a live person who can try to determine if 10 new Japanese sellers trying to sell the same identical item overnight makes any sense at all. If it was my company I would suspend them.

With all their computer power, Amazon certainly has the ability to set up algorithms to alert them to buyers that are doing something they shouldn't.  

One Reason Amazon Is Cracking Down on Sellers   One Reason Amazon Is Cracking Down on Sellers

by: toml3030 This user has validated their user name.

Mon Oct 24 21:00:42 2016

Hey Amazon!  You really want to stop fakes from being sold on your site?  Ban drop shipping of brand items from China to other countries and I'll guarantee you at least half of the fake items on your site will go away.



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