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Can Amazon legally force a seller to lower their prices?

ECOMMERCE NEWS

Being on Amazon must have been a wild ride for this seller who expressed their annoyance in a letter sent to EcommerceBytes. They complained about having a barrage of emails saying that their listings had gone kaput due to pricing errors.

What doesn’t make sense is that the seller's new items will not be reactivated unless these are priced lower than used ones. They've also been asked to adjust prices even when they don’t offer the highest prices for that product. Frustrating, right?

🍒 Cherry on top

The thing that triggered the letter sender the most was when it also happened on their listing wherein they found out that their competition is no other than Amazon themselves. Their sentimers were: why does the retail giant dictate their prices? Isn't this considered price fixing?

💼 Not an isolated case

Seems like the letter sender isn't the only one who experienced being forced to slash their prices. A commenter on the same post shared that they have 21 vinyl records listings deactivated due to a potential pricing error. Despite providing proof that the items were valued at $99.95, Amazon wants them to list those under $24.95.

The sender ended by stressing that these situations shouldn't be ignored just because Amazon is a big company, and no one wants to tackle the beast in this ecommerce industry.

HOT TOPIC

New Amazon Seller Forum leaves sellers unsatisfied

Creative: Joshua Renvic Trinidad, Sellers Unsatisfied

Amazon just recently updated its Seller Forum and one of the most significant changes is displaying the sellers' business name on the platform. This drew flak to the community, but there are many more not to like.

A seller posted on the forum that they found it "useless" because they couldn't find the answers for a particular question they were looking for. That is even after they've narrowed down the category and tag. Basically, the forum didn't serve its purpose of catering to sellers' questions.

😓 They're not the only one

Other sellers are commenting on the thread. One of them agreed with the original poster (OP) that the "Search Seller Forums" feature isn't serving its purpose. Google search does a lot better job when looking for answers.

Some said the new forum is "really poorly done," and it's very difficult to use and move around. They concluded that these changes weren't designed with the seller's convenience in mind; instead, "it is more like they were designed explicitly for making them harder to use."

Have you tried out browsing the new forums? What was your experience like?

BITES OF THE WEEK

CASH CORNER

How to solve these 4 business cash flow issues

Creative: Joshua Renvic Trinidad, Cash Flow Issues

Cash flow is the lifeblood of your business. It ensures your operational costs are managed, turning profits into opportunities for growth. EComEngine outlined four cash flow issues and how to solve them so they don't derail your success.

1️⃣ Underestimating startup and operational costs
Getting off the ground isn't easy and cheap. With operational costs for pricing, PPC campaigns and listing management tools, platform subscriptions, and other startup costs, it's easy to burn your cash flow like wildfire if not properly managed.

Solution: Take note of all operational costs and see which areas you can cut down. Look for cheaper alternatives, if possible.

2️⃣ Funding for product launches
Starting a business means preparing for product launches. It doesn’t have to be grand, it just has to be successful. Some business owners make the mistake of wanting to have a big launch to the point that it drains their savings.

Solution: But don't hit the gas too hard right away — start small and be prepared with enough resources for three orders, and scale up as sales show promise, so you don't run out of stock until profits roll around.

3️⃣ Your sales are seasonal
For sellers, the holiday season is a time for cheer and cash flow headaches. There's big money spent on inventory, labor & operations way before December rolls around, but it can take until then to make money.

Solution: With the proper cash flow planning, you'll have plenty of cause for cheer: avoid tying too much money on extensive inventory and cut expenses during slow seasons.

4️⃣ Invoices are due before you've been paid
With bills piling up, how do you keep the money flowing before your revenue rolls in?

Solution: Negotiate with suppliers and see if you can stretch out payment terms, diversify your sources of income, and finance orders for extra financial wiggle-room until revenue comes rolling in.

All businesses go through cash flow issues, but it’s best not to be fazed by them.

SELLER REFRESHER

How to avoid FBA surcharges

Creative: Joshua Renvic Trinidad, FBA Surcharges

Selling on Amazon isn't always smooth sailing. You're bound to encounter difficult customers, inventory problems, and mistakes made by fulfillment centers. These are inevitable, but you must minimize their effects. SageSeller weighed in on this topic.

You could request FBA reimbursements if the warehouses or fulfillment centers made mistakes that led to losing your inventories, hence losing money.

💸 Types of reimbursements:

  • Lost or damaged inventorY
  • Return processing fee
  • Weight handling fee
  • Long-term storage fee
  • Reverse logistics fee

📦 Fees on FBA surcharges are very common. You might not know it, but you're losing money this way. Here's how to avoid them:

  • Label and package your products properly before sending them to fulfillment centers.
  • Have an updated and accurate inventory record.
  • Immediately communicate with Amazon customer service ASAP.

Never lose money over FBA reimbursements again by staying vigilant

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
Email: [email protected] | Post Categories and Tags :

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