Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Dec 4 2014 22:46:34

Amazon Ploy to Get Sellers Using FBA?

By: Ina Steiner

Sponsored Link

As we wrote in October, Amazon is no longer allowing sellers to offer 1-day shipping unless they use Amazon's own fulfillment service - quite a restrictive policy.

At the same time, Amazon also put restrictions on sellers' ability to offer 2-day shipping.

This week a seller received a letter from Amazon informing him he can no longer offer 2-day shipping for merchant-fulfilled goods. "Seems like a ploy to get sellers like me to use Amazon fulfillment," he told EcommerceBytes.

The seller said some of his metrics are now displaying lower, though his account health shows 100%; "Our metrics are spotless and we met all our fulfillment goals to a T for 100% for years including tracking and on time delivery."

Here's the letter he received.

Subject: Removal of Eligibility for Two-Day Shipping

Dear Seller,

To ensure sellers deliver the experience buyers expect, we require certain performance standards for sellers offering Two-Day Shipping. One or more of your performance metrics is below the required threshold, and as a result, customers will no longer have the option to select Two-Day Shipping when they purchase your products.

If you have any existing Two-Day Shipping orders, please ship them on schedule.

If you want your eligibility to offer Two-Day Shipping to be reinstated, please refer to Amazon's performance requirements for Premium Shipping options:

https://sellercentral.amazon.com/gp/help/201503640

Sincerely,
Your Amazon Marketplace Team


What's your experience with the new policy? Is it reasonable to restrict sellers from offering customers expedited shipping in order to protect customers? Or is it a ploy to get more sellers using Fulfillment By Amazon where there are no such restrictions?




Comments (19) | Leave Comment | Permalink

Readers Comments

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

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

Fri Dec 5 00:26:35 2014

In its own ways, Amazon is every bit as greedy as ebay and becoming as anti small seller using coercive methods designed to decrease seller profitability while enhancing their own.

I think the era of profitable third party selling on most websites is about over.

FBA is being used as a club to improve Amazon profitability and huge Prime losses by taking it out the hide of small 3rd party sellers.

This latest greed based move creates Amazon's equivalent of Diamond sellers and will eventually sink non FBA users into oblivion.

The best way to stop Amazon is for the vast majority of sellers to remove all or most of their products from FBA and let Amazon lose more money paying for near empty warehouses and idle workers.

Ir Amazon's 3P sellers don't unite and strike back, the oppression and profitability theft will continue.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: angryllama This user has validated their user name.

Fri Dec 5 05:05:57 2014

Bummer. I've seen others comment that AMAZON has a One Strike...Yer' Out policies, but this stink of the same sort of Winnow Out the Small Sellers Policy at EBay. EBay is Wacky, but this surely does seem to be AIMED at forcing currently happy Amazon Sellers to Suffer the Obnoxious and in many cases Onerous expense of Shipping products to an Amazon warehouse and then pay Extra for Amazon employees to do the final packaging, storage fees, etc. I suspect that for Amazon sellers who have already Embraced the FBA set-up the latest increased fee prices are viewed as minor... but as an outsider I viewed them with alarm and trepidation. Imagine if step by painful step eBay had the GALL to tell all sellers they had to do Same Day Shipping by no slower than Guaranteed 2-day shipping... and then toss them out the first time USPS ''screwed up'' and delivered a 2-day priority package on the 3rd day.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

This user has validated their user name. by: Rexford

Fri Dec 5 06:56:45 2014

If just one site would dedicate itself to small sellers, and take an oath to never go public or sell out to the big box retailers and the Chinese, they would do well, assuming that they actually use some of their revenue to promote and advertise.  Of course those selling at the site actually have to buy from the site. I think eCrater has done the best job of leaving sellers alone to sell, and I'm not sure why sales aren't better there.

As we have seen with at least two eCommerce powerhouses, greed destroys.

(Seriously, how much money is enough for these companies?)

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: RCL This user has validated their user name.

Fri Dec 5 10:44:42 2014

I don't care what Amazon does. I just wanted to complimet you on the great "baby picture" of Jeff Bezos! I LOVE IT!!

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: maxmad This user has validated their user name.

Fri Dec 5 11:31:28 2014

This should be a wake up call to All sellers,

Any venue that takes a commission based on the amount of your sale, will eventually start squeezing you out for more profitability for itself.

It's not personal, it's only business

Corporation's will go to great lengths to exterminate it's competition unfortunately in this type of business it's (you the seller) that they are competing against,

AMAZON, EBAY, and now even ETSY, are all the same.

Not even sure this could even be  legal to operate like this???

it's beyond belief

 

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: Ebay Seller-Ebay Buyer This user has validated their user name.

Fri Dec 5 12:44:22 2014

In all dictatorships a small group at the top ends up with everything and maybe that's where America is heading and maybe large corporations like Amazon and Ebay represent this dictatorial mind set. Basically Bezos and Donahue and their top executives make more while everyone else makes less or quits and finds another job besides internet sales.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: gutspiller This user has validated their user name.

Fri Dec 5 15:55:56 2014

After being on Ebay for several years, + $ 500.000 turnover and near perfect feedback I left Ebay more than 6 months ago.

Businesswise the best decision I took since launching my own business. This week I was contacted by Rakuten. They had found my website said I had a very interesting offer and asked if I would be interested to start selling on their site. A win-win situation. with a please when can we call you to discus it.

Sorry but NEVER EVER again I'll sell on another marketplace. No matter if it's Ebay, Amazon, or any other oline marketplace. They are not interested in your succes, they just want to squeeze you as much as they can.

The only way you can win against them is to leave.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: mjr55 This user has validated their user name.

Fri Dec 5 23:00:15 2014

I doesn't think this has anything to do with forcing FBA. USPS doesn't even really offer an overnight option anymore.....most express shipments are now 2 days since they changed their products a few months ago. I think this is more about the options not really being there for sellers to get the items there that fast.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

This user has validated their user name. by: Basset

Sat Dec 6 14:10:25 2014

I don't sell on Amazon but have bought there.  As has been said here before,  Amazon is all about Amazon.  The 3P sellers are needed until they are not needed.


a comment on Ina's article on Amazon & the diaper trade:

Lots of television commercials locally about services (not Amazon) to deliver ADULT  diapers to your door in an unmarked box.  I doubt they could compete with Amazon. Bezos has seized an opportunity.  A market perhaps that could eventually gain loyalty from from birth to old age.   Also, if Amazon is venturing into the paper products delivery market - can toilet paper, paper towels, and feminine products be far behind?


It may prove to be a wise business move - time will tell. But it also seems to be a bit ironic - I'm not sure how much paper by-products or absorbent wood pulp is in diapers these days but paper products are derived from trees.

What were those stories about a certain South American River location and deforestation?

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: Bubbles This user has validated their user name.
Web Site

Sun Dec 7 00:45:23 2014

Seems it is a competition between Amazon & Ebay as to who can be the nastiest, more ruthless and antagonistic towards their sellers

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: koonkat This user has validated their user name.

Sun Dec 7 01:51:33 2014

I've removed some marginal profit (on FBA) items from Amazon, and continue to invest more on our own site.  Amazon continues to twist their knife with policies like multi warehouse placement, undercutting merchants, and now reducing shipping options.

I don't feel trying to depend on a hyper-competitive, race-to-the-bottom environment is in our interest.  Our own web store where we compete with a knowledge base and quality customer service is my main focus.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: Paul W This user has validated their user name.

Sun Dec 7 23:59:14 2014

Of all the sites beyond eBay and Amazon, the one where I have sold the most is eCrater.  Far behind eBay in traffic, but enough sales to make it worth adding inventory there.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: donald This user has validated their user name.

Mon Dec 8 00:20:47 2014




I agree with Ming, stay away from FBA. We need to stick together on this one. If we don't they have better chances of putting us out of business ....


Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: Cloud This user has validated their user name.

Mon Dec 8 00:38:15 2014

I don't use FBA and I am still allowed to offer 2 day shipping.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: Moonwishes This user has validated their user name.
Web Site

Mon Dec 8 02:53:25 2014

I sell on Amazon but would never use the FBA system. I never could adequately figure out how much they charged and then I saw a blurb about the costs the other day, maybe it was here, and when I saw what they charged to use the FBA I knew I would never do it. Way too expensive and takes all the profit.

As to the 2 day stuff. It won't change a bit how I do anything. In all my years of selling on line I have always shipped within 24 hours or less, which means I get lots of feedback on quick shipping.

Perhaps it is the product I sell, but unless Amazon has the ability to source product the way I do, they will never be able to 'compete' with me on all levels. I get a lot of orders from Amazon and I also sell on ecrater. Ecrater doesn't tie you in knots, but most of the knot tying is done by google who seems to have this odd idea that someone put them in charge of all sellers on the internet and that we have to obey their every command. I don't go along with that unless google wants to send me a paycheck for working for them.

However I can see an agree with Ming's assessment that the days of 3P sellers are drawing to an end depending heavily on what they sell. Some will have more time than others, and some may never get driven out of business. Some of us our worst nightmares are other 3P sellers that are picking up inventory they no nothing about and selling it for too high or generally too low and thus trying to grab the sale out of sellers just on price alone--not service, shipping, or anything else, like even knowing enough to answer questions.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: mindelec This user has validated their user name.

Mon Dec 8 04:00:19 2014

expedited, 2 day, and 1 day are 3 different methods.  when most people want it fast they choose expedited (aka priority mail) which hasn't been affected by amazons changes.  2 day and 1 day are guaranteed delivery times and cost much more and in the case of books under-paid to the seller.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

by: Runs.With.Scissors This user has validated their user name.

Mon Dec 8 09:51:59 2014

I changed all my Amazon listings from 1 day to 3 days handling time (about a month ago), and it has not significantly affected my sales there.

I also changed all my ebay listings from 1 day to 4 days handling, and it does not seem to have affected my sales there either.  (I know I'm about to lose the 20% FVF discount anyway, so what's to lose?).
After much testing, (2 days, 3 days, 4 days), I found that 4 days, combined with "Economy Shipping" was the only way to get rid of ebay's unrealistic insane "get it by" date forecasts.  

I did this to avoid nasty metric ratings on Amazon, and ebay, due to the probability of bad winter weather and more USPS cutbacks that are coming soon.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

This user has validated their user name. by: shabbychick

Mon Dec 8 11:35:02 2014

Rexford:
Ecrater sounds good and I plan to sell there soon, but Bonanza stays out of your business pretty much and one click puts all your current listings on the site forever for free.  I confess I have listings there from 5 years ago, and once in a while one sells at which point I send gifts (really) in the package to thank someone for taking it off my hands!

With folks losing 1000s of listings at one fell swoop of Ebays treachery, I still don't get why they don't use a listing service like Inkfrog or Auctiva. For 9.95 a month you make sure you have all your listings in one simple place forever. Goodness, I have listings at Inkfrog from 2005! I may relist some of that stuff someday. Ok, ''I was hording before TV made it fashionable'' (bumper sticker, not to my credit),  but its all hidden away in boxes under the bed and in the attic for the most part.

Perminate Link for Amazon Ploy to Get Sellers Using FBA?   Amazon Ploy to Get Sellers Using FBA?

This user has validated their user name. by: shabbychick

Mon Dec 8 11:36:01 2014

Still, wouldn't it be nice if Amazon would start an antiques/collectibles/used/vintage wing?  



Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.