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Amazon Disrupts Vendors Going into Holiday Season

Amazon Reportedly Disrupts Vendors Going into Holiday Season

There are reports that Amazon is forcing some vendors to migrate to a seller account, just before the busy holiday season. There are some significant differences between the two types of accounts, and Amazon consultant Chris McCabe warned the new restrictions could have a big impact on some branded sellers.

He pointed to a letter that some vendors reportedly received and wrote in a post on LinkedIn, “It looks like Amazon plans to close permanently numerous vendor central accounts, according to this messaging making the rounds. It is causing quite the stir today, and for obvious reasons! This is definitely the wrong time of year for a huge, last minute surprise.”

“Be prepared for potential delays and suspension risks as this pipeline backs up,” he warned sellers.

In addition, he warned it could have an impact on ASINs, writing: “Vendors have the highest level of contribution to listings. Without access to this, former Vendors will likely encounter difficulties when updating listings. Mistakes could slip through, impacting live listings, especially if you don’t have vendor-level control anymore!”

McCabe said he hoped Amazon would remove the blocks they have imposed on some vendors from selling their own products through third-party accounts.

We can’t help thinking about a recent indictment of vendors who allegedly bilked Amazon of $19 million, according to the Feds, by allegedly manipulating its vendor system. The US Attorney’s Office for the Southern District of New York charged four brothers with conspiracy to commit wire fraud, wire fraud, and money laundering.

“My Amazon Guy” on Youtube published the following video yesterday about the move and what it means for vendors:

Written by 

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.