Amazon’s policies harm sellers, but is there enough incentive to change?

Jeff Bezos, Amazon’s founder and CEO, is famous for leaving a literal “seat at the table” in his boardroom to represent the Amazon customer.[7]While we believe this seat at the table is an excellent idea and made with the best intentions, this idea is only half thought through.

This comes from the post Counterfeiter’s Paradise: Amazon’s Consumer-First Policy Harms Sellers  at Amazon Sellers’ Lawyer blog, where the argument.

For the fourth quarter of 2017, third party sellers on Amazon represented 51% of the products sold.[8] Bezos and his team can no longer ignore Amazon Sellers. Sellers, just like Customers, needs a seat at Amazon’s table and have solutions for their rights and interests discussed and solved so that problems from counterfeiters are stopped BEFORE they occur. Otherwise, if Amazon continues to only address counterfeiting problems days after they have occurred and their Sellers have lost profits, then Amazon may in-fact be a complicit partner in these counterfeiting operations.

Of course, the problem for sellers is that Amazon can continue to ignore individual sellers because there’s such a large pool, that there’s nearly always someone willing to step in and fill any void. Even when brands try to keep their products off Amazon, resellers make them available, which leads to brands nearly being required to have some sort of relationship with Amazon, even if to just gate their own products.

More highlights:

  • Amazon needs to provideaccording to Hopkinsan open line of communication between the Sellers and Amazon so that Sellers can tell Amazon whether theysell their products wholesale from the factory.
  • For the fourth quarter of 2017third party sellers on Amazon represented 51of the products sold.
  • Otherwiseif Amazon continues to only address counterfeiting problems days after they have occurred and their Sellers have lost profitsthen Amazon may in-fact be a complicit partner in these counterfeiting operations.

I certainly agree that the policy harms sellers, though I’m reticent to believe Amazon will make any changes as there doesn’t appear to be enough incentive at this point.

Andrew @ EcomLoop
EcomLoop founder. I've worked in ecommerce since 2005, beginning with my own ebay store. I've run multiple independent ecommerce businesses on Magento, Joomla, and more recently, Shopify and WooCommerce. I believe marketplaces should be looked at as a sales channel and that all independent businesses should strive to build a direct connection with their audience for long-term success.

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