Someone Needs to Speak Up.

Despite conventional wisdom, 3rd Party selling as it is currently done on Amazon.com is an eroding business. We frequently hear about 3 million or more 3rd Party sellers on Amazon.com. The truth is that the top 250,000 sellers make up 80% of the units sold Amazon.com. Private Labels sellers are a tiny fraction of what's shipped and sold on Amazon.com. In fact, we believe private label on Amazon is more of a multi-level-marketing scheme than a real business.

We believe that Amazon and its brand partners are in the process of eliminating the sellers who do most of real business on Amazon.


Some current examples of this are:

• With little or no advance notice Amazon blocked all 3rd party sellers from selling the Luxury Beauty category. This eliminated hundreds 3P sellers who had significant investment in the category and were largely responsible for it success.

• Amazon created Prime Pantry with zero involvement of 3rd party sellers, and by default eliminated many 3P seller that had sold these staples for years. 

• Amazon created Transparency Codes and made no allowances for inventory already in 3P sellers’ warehouses. 

• Amazon has not enforced the terms of the transparency program on manufacturers.

Amazon Seller Performance Artificial Intellgence
• Amazon makes no allowances for 3rd party sellers who are abused by Trademark Holders


• Amazon accepts, with no fact checking, thousands of frivolous & false intellectual property reports that are simply filed to control pricing and distribution.

• Amazon makes no effort to reign in cottage industries such as "brand protection specialist" who abuse the reporting tools.


• Amazon makes no effort to protect 3rd party sellers in the press or media when we are depicted as the problem.

 

Another issue facing the top 200,000 sellers is Amazon's commitment to artificial intelligence (AI) and the concept of being the "everything store". By allowing the long-tail (small and new sellers), and by policing the long-tail with AI, Amazon Seller Performance issues thousands of policy violations which are false positives or otherwise naturally occurring events. This results in excessive and unruly enforcement upon the sellers who make most of the sales. The enforcement is often arbitrary and excessive. Amazon punishes sellers for many things it itself does. Further, we believe that if Amazon were to treat Amazon Retail in the manner that it treats is 3rd Party Sellers, then Amazon would not be allowed to sell on Amazon.

Quality sellers are under constant threat. Each time a quality 3p seller receives these overbearing policy warnings they are thrust into a system that is unstable. Seller Performance investigators with little knowledge of the platform and even less business acumen are making critical decisions that are fatal to 3P sellers.

Someone needs to speak up and we need to speak up fast. The rapid adoption of Project Zero by Brands is a real threat. Brands are capable of filing false and frivolous intellectual property claims. The do this simply to control pricing and distribution on the platform. Further these Brands use the threat of false reports to force sellers to raise prices, to not promote old models, to discourage buyers from buying competitor products and to restrict our ability to sell their products legally and in terms with Amazon's Business Service Agreement.

The problems are Epic and getting worse daily. We need to speak up. Please speak today by Joining the Amazon Sellers Association. Before its to late!

 

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