2024 only started and we already get some hot news on American multinational technology company – Amazon!
According to a recent article in the Financial Times, Amazon’s recent crackdown on its marketplace has resulted in some small businesses having their accounts suspended. Millions of accounts on the leading e-commerce platform have been prevented from making sales due to alleged violations of Amazon’s wide range of policies and other bad behaviour. And it is safe to say that in this case, even temporary suspensions can be a critical blow to small business owners who rely on online sales.
It has led to merchants turning to the lawyers to try to regain access to their accounts and money, amid growing scrutiny of the retailer’s treatment of independents. About a dozen sellers said they had become concerned about Amazon’s power to suspend their accounts or product listings, as it was not always clear what had triggered the suspension and Amazon’s seller support services did not always help to resolve the issue.
So, let’s look closer at this topic and decide who was right!
What people(sellers) are saying right now
While Amazon’s efforts to crack down on issues such as fake product reviews come as US and European regulators have stepped up their scrutiny of online harms faced by shoppers, critics argue that the existence of a growing army of lawyers and consultants to deal with the fallout from Amazon’s actions points to a problem with the way the retailer treats its sellers.
“If you’re a seller and you need help to navigate the system, that’s a real vulnerability for the marketplace. If you’re operating a business where the people you’re deriving revenue from feel that they’re being treated in an arbitrary way without due process, that is a problem,” – said Marianne Rowden, chief executive of the E-Merchants Trade Council.
“The fact that there are entire law firms dedicated to dealing with Amazon says a lot,” said one seller, who like many who spoke to the FT asked to remain anonymous for fear of reprisals.
Figuring out what caused a suspension and how to reverse it can be difficult. “We had a listing shut down during Prime Big Deals Days with no warning, no cause, no explanation,” said one kitchenware seller who has been selling on Amazon.com since 2014. “That’s pretty common.”
Such confusion drives some sellers towards lawyers and consultants who advise on underlying problems, such as intellectual property disputes.
What Amazon said
Amazon’s lawyers said the company was working to “eliminate errors and ‘false positive’ enforcement” and had an appeals process in place for sellers. They also admitted that some sellers had been wrongly accused by the company’s automated systems that identify breaches of rules and policies. But they added that others had broken Amazon’s rules.
The retailer has become “more draconian” in the enforcement of its policies in recent years, said attorney Jeff Schick.
“Clients will say Amazon is unfair,” he said, but added that if the company did not strictly enforce its rules “then the platform becomes the next Craigslist”.
Conclusion (&personal opinion)
In my opinion, Amazon’s crackdown on fraudulent sellers is a positive step towards ensuring a fair and transparent marketplace for all. As Forbes reports, Amazon’s recent suspension of multiple high-profile sellers for using banned techniques to get reviews is a win for everyone. The fewer fake reviews that infiltrate Amazon, the better the customer experience will be. Amazon’s muscle-flexing against fraudulent brands is also a big win for those brands that play by the rules
<p id="<div-class="callout-left-full">–<h3>Full-Callout-Box-Headline</h3>–<p>YOUR-TEXT-GOES-HERE</p>–