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Mon Sept 12 2016 21:43:03

Retailers Applaud Amazon Crackdown on 3P Merchants

By: Ina Steiner

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It's no surprise that brands, manufacturers, and retail chains would applaud any move to make it more difficult for marketplace sellers, especially those who work outside the established boundaries of the retail industry.

A retail expert wrote a harsh assessment of Amazon merchants in his column in ComputerWorld this morning: "In trying to be the world's largest e-tailer by offering almost anything, Amazon has attracted a dedicated group of thieves and resellers trying to slip through the holes in Amazon's bureaucracy. Amazon is now making a good-faith effort to thwart those selling unauthorized goods, just as it tried to attack deceptive product reviews."

Nevertheless, ecommerce today was built on the backs of non-traditional sellers. 

Big-retail were used to getting pennies on the dollar for returns and overstock inventory - and suddenly they were getting much more for those goods thanks to sellers who gobbled them up to resell on eBay and other marketplaces. (Retailers and brands helped create this monster!)

Marketplace sellers can move on a dime - nowadays they scoop up items on clearance at Kohls and Target to resell on Amazon, called Retail Arbitrage. They even use the technology created for retailers to be more efficient, using scanners to scan barcodes in the aisles to quickly determine if they can resell the items profitably online before bringing their cart(s) full of goods to the real-life checkout line.

In taking about the new brand-gating fees, Evan Schuman wrote in his column, "The new Amazon fees are fairly minor, separating those who are running serious retail businesses from garage sale resellers."

It appears Amazon may indeed be cracking down on garage-sale resellers, but is that necessarily a good thing?




Comments (15) | Permalink

Readers Comments

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: pace306 This user has validated their user name.

Mon Sep 12 23:28:54 2016

Speaking for myself, EVIL Evans column isnt worth the paper its printed on.

While there are thieves mixed into the legitimate sellers in Amazon, its hardly a few rotten apples that cause the problems.

1) It doesnt explain why a fairly LARGE portion of brands and categories are blocked - and they were "gated" WAY before any of this ocured.

2) Amazon has as much respect for 3P sellers as the other evil empire does aka eBay. There FORCED 30 day returns are mandatory, Amazon cares not for sellers getting broken, defective items back and MORE. In other words - Amazon - if it wants respect - should serve some respect back too

3) Amazons quest to be the end all of everything has caused them to create a system that has MAJOR flaws. Send in something to FBA and it gets commingled. Thieves count on that to send in fakes - if Amazon spent some time  looking into each shipment instead of just slapping labels on boxes - there wouldnt be as much of an issue

4) the fees are quite hefty and abusive. Let this schmoe pay them for any seller that cant afford it - then watch how he shuts his trap.


Its always the people who arent in the trenches, the ones who dont know anything that like to talk. They are part of the problem, not the solution.
 

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

This user has validated their user name. by: Rexford

Tue Sep 13 06:48:18 2016

Showing my age here, but I remember an episode of Andy Griffith where Ben, the mean and ornery town merchant didn't like the fact that Sheriff Andy had helped a good natured traveling peddler set up a home goods stand in town. Stingy Ben didn't like anyone "stealing" his business and was on Andy's back constantly with rants of why it was unfair and illegal.

The retail expert and those whom he represents sound very much like Ben the stingy retailer.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

This user has validated their user name. by: RKTOYS

Tue Sep 13 12:38:55 2016

I have no idea how anybody makes a cent flipping retail-purchased stuff on Amazon.  20% fees and $4 shipping vouchers?  Even with a wholesale account, that's a really tough pill to swallow.

On topic, what a bunch of spoiled ingrates.  Stores don't want people scooping up clearance items?  Fine, they can just sit there and rot until you donate or destroy them.  Everybody just wait for these crybabies to go hat in hand to mommy government when the financial results post.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: mcposty This user has validated their user name.

Tue Sep 13 15:37:35 2016

Amazon, ebay, etsy are no longer mutual partners like they should be, they are corrupt manupulative criminsl organizations.

We simply do not need them.

Not to mention, their views are so bad they gotta charge you to advertise, ontop of the outrageous listi.g fees and sale fees...the listing feee alone shpukd cover advertising.

They reall suckered you guys

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

This user has validated their user name. by: Ming the Merciless

Tue Sep 13 17:19:08 2016

In my opinion, he crux of the matter has little to nothing to do with third party sellers engaging in retail artitrage.

Rather, the reason is that Amazon doesn't want to endanger their business relationship with these wholesalers and manufacturers.

As with ebafia, it's always about the money and Amazon self protection so they can undercut and destroy their 3rd party sellers whenever they see profit in doing so.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: mindelec This user has validated their user name.

Wed Sep 14 07:15:11 2016

It is a bad thing.  The best deals will come from small sellers, not big corporations  

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: rover This user has validated their user name.

Wed Sep 14 07:19:10 2016

Ebay was built and grew fat on the backs of small ''mom and pop'' sellers who sourced their merchandise anywhere they could find it. Etsy was built on the back of Indie artisans who hand made the merchandise they sold. Then the dumbo suits from Wall St got involved. Empires rise, grow, become corrupt, and fall. Thats the way of history.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

This user has validated their user name. by: VV

Wed Sep 14 08:13:13 2016

Buyers like cheap prices and are willing to turn a blind eye to where sourced from.  The gray market is what allows for the low pricing.  

Try buying legitimate wholesale.  90%+ of the time the per item cost will be the same on Amazon or cheaper.  Most likely the wholesaler will be listed there as well.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: zenbreeze This user has validated their user name.

Wed Sep 14 08:29:05 2016

The only way Amazon seems to be ''cracking down'' is by making more money.  The big thing hurting me are overseas outfits setting up duplicate listings for their fakes not selling on my brand, although I have had those as well.  And I'm sure they'd gladly give Amazon the $1K ''fee'' too look the other way.  They seem to have plenty of money to advertise the fakes they sell.  

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: Moonwishes This user has validated their user name.
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Wed Sep 14 08:45:16 2016

Amazon is not the selling venue that it used to be when I started selling there 15 years ago! The longer I'm there, the more I get unhappy about the place. Sales are way down from just a couple of years ago. I left ebay due to their dirty practices and I wonder now about leaving Amazon. The only venue that still seems to respect and work for their sellers is eCrater. No I don't get as many sales there as I used to but that is true with all venues that I sell on. I know if someone wants a return I can point them to MY return policy, not eCraters. I can set my shipping prices to cover my costs to mail whatever I'm shipping. I can list anything I want as long as it isn't counterfeit/pirated/etc. Listing is free, 10 photos for free per listing, Depending on where your sales come from you may not have any FVF, or they are minimal. The most I had had to ever pay is less than $12 one month. Compare that to at times $800 a month total I paid eBay and the about $200 a month I pay Amazon. I do my own promotions of my goods.

Google wants to stick their nose into eCrater's business, but then Google thinks it belongs in everyone's business. If more GOOD sellers with good invenotry would come to eCrater, we would all profit.  

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

This user has validated their user name. by: FEEbay

Wed Sep 14 11:51:55 2016

Was punted from Amazon 2 years ago today,,Suspended indefinitely for "Seller Performance" aka, a competitor kept buying items from us, and filing A-Z claims...
Ebay sucks pretty hard, but Amazon is THE WORST venue of them all... We have replaced that 100K/month in sales with our own site, Social Media, etc and life couldnt be better---WITHOUT Amazon!

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

This user has validated their user name. by: Rexford

Thu Sep 15 06:31:24 2016

Agree with Moonwishes. eCrater is the only site left where you can truly run your business without interference.  Love that site.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: TomH This user has validated their user name.

Thu Sep 15 09:05:16 2016

@pace306 & Moonwishes

Agree with both of you just about 100%. I sell on both Amazon and eCrater.

Amazon has definitely been on a downward spiral the last year, maybe a bit more, against 3P sellers. The Chinese are just about everywhere now with crap and duplicate listings. Amazon appears to be as welcoming, perhaps even more, to them as eBay.

FBA co-mingled was a viable option for some products a few years ago, but now to co-mingle your FBA products is a death-wish.

As is said, just my not humble opinion.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: ignatz This user has validated their user name.

Wed Sep 21 10:06:02 2016

Maybe a miracle will occur and eBay will create an entirely separate "eBay Classic" website, with relaxed rules and lower fees, and once again attract all the small 3P sellers who have interesting and unique items to sell.

Retailers Applaud Amazon Crackdown on 3P Merchants   Retailers Applaud Amazon Crackdown on 3P Merchants

by: ignatz This user has validated their user name.

Wed Sep 21 10:14:20 2016

That article is, frankly, a pile of crap.

First off they state the new rules apply only to "new merchants."  WRONG.  They contradict themselves in the very
next sentence where CNBC is quoted as saying that existing sellers woke up one morning and found they couldn't list their stuff.

Then they use the BS term "barely legal".  Excuse me, Mr. Psych degree pretending to be a lawyer.  Something is either "legal" or it's not.  And in this case, there's this LITTLE THING CALLED THE SUPREME COURT, that recently ruled that it's LEGAL to resell something you own.  PERIOD.  

The fact is, selling NEW stuff on Amazon, and eBay  now as well, is fraught with peril for "garage sale" sellers.  For example, if one finds a 20-year old desirable-model Sony Walkman sealed in the original package, one might think one has hit the jackpot.  Not so fast!

If one should sell that at either place, the buyer can rip open the package, use it a while, decide they don't "LIKE IT", and send it back. Even if the unit comes back in good condition, most of its value has been destroyed.

There was a lot of carping on the Amazon forums about "NOS".  Well, the only way to sell NOS is on Craigslist or one of the myriad "classified" sites, FOB (Francs on the Barrelhead).



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