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Tue Aug 27 2019 11:56:38

Amazon Faces Challenges Long Familiar to eBay

By: Ina Steiner

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Sellers have long noted the "amazonification" of eBay, where the marketplace tried to attract brands and national retail chains and focused on a "catalog" (structured data) approach to listings. But Amazon also looked to eBay's approach by adding third-party merchants to its marketplace to beef up its offerings. In fact, Amazon says independent third-party sellers (comprised primarily of small- and medium-sized businesses) now make up 58% of all physical gross merchandise sold (2018 data).

But not having 100% control of the inventory for sale on the marketplace comes with risks.

The Wall Street Journal wrote a scathing report on Friday: "Amazon Has Ceded Control of Its Site. The Result: Thousands of Banned, Unsafe or Mislabeled Products: Unsafe toys are among the products available for sale on Amazon."

The authors don't mince words, starting off their piece: 

"Many of the millions of people who shop on Amazon.com see it as if it were an American big-box store, a retailer with goods deemed safe enough for customers.

"In practice, Amazon has increasingly evolved like a flea market. It exercises limited oversight over items listed by millions of third-party sellers, many of them anonymous, many in China, some offering scant information."

Amazon defended its practices in a blog post the same day the Journal ran its story, citing sophisticated tools that prevent non-compliant products from being listed. Vetting new sellers, requiring them to comply with product safety laws, monitoring listings and reviews are among the practices it cited.

Amazon also said it works with government regulators: "We also regularly work with agencies including the Food and Drug Administration and Consumer Product Safety Commission, and the information we share helps them identify trends and develop regulations. We are active in industry working groups and committees that are dedicated to developing new solutions and guidelines that will benefit all retailers and consumers."

What's interesting is the Wall Street Journal's use of the term "flea market" to describe Amazon, an image eBay tried to eschew for the past decade.



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This user has validated their user name. by: toolguy

Tue Aug 27 18:47:25 2019

Looks like Amazon is burning at both ends with no control in sight.

It's a jungle out there and it's on fire. . . .

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by: pace306 This user has validated their user name.

Tue Aug 27 19:40:33 2019

YES BUT, you can return items to Amazon - but you cant "return things to eBay".

Amazon DIDNT cede control to 3rd parties - it just gave them a free hand to SELL. eBay doesnt give anyone anything - unless you mean the BOD and its blood money.

Complaining that theres unsafe Chinese items on Amazon shouldnt suprise anyone - did anyone forget the tainted dry wall and food stuffs?

Americans (in general) want cheap stuff and so they buy Chinese crap. And as the old adage goes - you get what you pay for. When something is too cheap to be "good/real - it usually is.

Saying that it doesnt happen on eBay is BS - eBay doesnt EVER stop the Chinese from selling crap on eBay - its just that eBay is 100x (or more) SMALLER and no one notices.

Internet Retailer Monthly - this issue (it addresses Q4) had one main article this month ....... "What about Amazon" ... with ZERO mention on eBay. Why ? eBAy isnt a player and doesnt get any press.

Dangerous illegal stuff from China IS on eBay - they just turn a blind eye. Until it can be proven in court - its all speculation.

Im not sure what "Amazon Faces Challenges Long Familiar to eBay" even means ... eBay owns nothing, does nothing and is nothing - eBay TRIES to own (they are LMAO "having a SALE") but they dont - eBay never VEROS itself for example.

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This user has validated their user name. by: toolguy

Tue Aug 27 20:01:01 2019

"Americans (in general) want cheap stuff and so they buy Chinese crap. And as the old adage goes - you get what you pay for. When something is too cheap to be "good/real - it usually is."

Funny coming from a guy who sells mostly chinese stuff ~ ROTFLMAO

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by: marty This user has validated their user name.

Wed Aug 28 06:16:41 2019

Wall Street Journal....and why should I believe them, it's like there are no fake news published there? WSJ,  a flea market of fake news, just like the rest of MSM. Nobody is 100% pristine, not Amazon, not WSJ. They only question is what they do about it.  

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by: Flying Childers This user has validated their user name.

Wed Aug 28 06:53:39 2019

Same all over.  Look what happened with Etsy.  They started out as a site that was mostly supposed to be handmade and vintage.  Then they found out that all the real money is in Chinese mass produced stuff.

Now that the Trump Administration is cracking down on China and they will be losing their cheap shipping, it’s gonna get very interesting.  Especially this last quarter.
Maybe quality US made products like what TG sells will make a comeback.

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by: Chicago48 This user has validated their user name.

Wed Aug 28 07:02:19 2019

As a FBA seller, #1 - there's a "report a problem" button on each product page.  If I see something wrong (price too high, wrong picture), I always report the problem. #2  - AMZ is a big huge marketplace, and they don't have enough people to monitor each and ever product that's listed.

What AMZ should do is put a "stop-wait" monitoring system in place.  At other sites I list, once the product is listed, it is reviewed by the site monitors before it goes "live."  And if it's prohibited, it's pulled or I get an email that something is wrong.  AMZ needs to do the same.  Unfortunately, 40% of AMZ's goods come from China and they are warehoused immediately for sale.  That's the downfall of AMZ's huge catalog.

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by: Chicago48 This user has validated their user name.

Wed Aug 28 07:03:52 2019

"Now that the Trump Administration is cracking down on China and they will be losing their cheap shipping, it’s gonna get very interesting.  Especially this last quarter.z'
^^ with the tariffs....watch what happens to the Dollar Stores that get all their merchandise from China.  If they increase their prices (have not yet), then the tariffs are effecting the consumers.

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by: Flying Childers This user has validated their user name.

Wed Aug 28 09:11:09 2019

Chicago- what about the many, many sellers on Etsy and Ebay who get most of their stuff from China to resell? (Amazon too of course).

The prices will go way up unless China subsidizes their sellers.  The question will be, why pay more for Chinese goods when you can Buy American for the same prices?

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This user has validated their user name. by: Bidonmine

Wed Aug 28 11:26:55 2019

I wonder what will happen when the cheap shipping for China is eliminated in October.

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This user has validated their user name. by: toolguy

Wed Aug 28 12:16:02 2019

@Bidonmine

$2 items will be $3

$5 items will be $6

$10 items will be $11

There won't be much change

I don't buy anything from china

If a seller tricks me and sends me a ePacket they get an instant red donut. . . .



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