Amazon Continues To Wreck Businesses With Draconian Suspension Policy

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FILE - In this Nov. 13, 2018 file photo, employees walk through a lobby at Amazon's headquarters in Seattle. On Friday, May 3, 2019, shares in Amazon are moving higher after billionaire investor Warren Buffett said his firm has been buying the online retailer. (AP Photo/Elaine Thompson)

NEW YORK (VINnews) — Tens of thousands of sellers on Amazon.com are facing financial ruin overnight due to the consumer retail giant’s draconian new policy regarding items which are claimed to be counterfeit. The company has decided that even if one or two items are claimed to be counterfeit, without the claim even being corroborated, the seller will be barred from selling his entire inventory on Amazon, even if it includes hundreds of other totally legitimate items.

The policy has hit many Jewish sellers, some of whom are stuck with huge inventories which they cannot unload due to their being peremptorily banned by Amazon from continuing their business. If you are one of these sellers, please take a few moments to share your experience with VINnews. 

Amazon.com does not own everything sold on their website. Rather, they operate a marketplace, where hundreds of thousands of small businesses sell their wares. In fact, 58% of sales on Amazon.com are sold by these merchants, amounting to tens of billions of items sold a year.

This marketplace is great for consumers, providing them with an incredible variety and ensuring the lowest prices on things due to the fact that everyone is competing on the same listings to sell the same items. The more competition there is in one place, the more there will be a price war to gain sales, which is wonderful for the consumers that gain from these lower prices.

Unfortunately, some of the manufacturers of these items are not so happy about the fact that the best place to get a good deal on an item is Amazon. They wish there was less competition, so items can be sold for more and their profits will be higher. Some of these companies are willing to engage in various shady and questionable actions to try to stop as many people as possible from selling their items, in order to try to raise the prices.

Some of these unscrupulous actions include falsely reporting the items being sold as being counterfeit, or as violating the company’s intellectual property.  This results in the seller’s item that was reported as counterfeit being frozen and taken off of Amazon.com until the seller proves that it is legitimate. (The manufacturer does not have to provide any evidence whatsoever to their allegations that the items are counterfeit. On Amazon, the seller is guilty until proven innocent.)

However, recently Amazon decided to take things a drastic and completely unnecessary step further. Instead of just suspending the sales of the item in question, Amazon often decides to suspend the seller’s entire store, and does not allow them to sell anything. They do this even for sellers that have been around for years with a stellar record and perfect customer feedback, and that are selling hundreds or thousands of other items besides the one or two items that received unsubstantiated complaints. This callous disregard on Amazon’s part to the welfare and livelihood of the sellers and their employees currently has hundreds, if not thousands, of sellers suspended. These sellers, and all their employees, have no idea where their next paycheck is going to come from, how they are going to pay their rent, and how they are going to pay their bills for the hundreds of different SKUs they purchased that are now all frozen and unsaleable due to receiving complaints about a couple of the SKUs. There is absolutely no reason why Amazon would decide to suspend these sellers entire accounts, even completely unaffected items because a tiny proportion of the items received complaints from the manufacturers that have not even been corroborated.

Recently some of the affected sellers decided to initiate a petition to Amazon demanding that the sellers be reinstalled and only the questionable items removed. One seller described her predicament, stating that:

“My dream was to be a stay at home mom, but now my kids will have to go to daycare so I can work my 9-5 job if Amazon does not lift my suspension. We are REAL people! What Amazon does with a click of a button is equivalent to a natural disaster damaging a brick and mortar business. Does it make sense to have a business lose everything without first assuming innocent until proven guilty? Even when a company fires an employee they gather lots of evidence against them. And the longer the tenure, the more leniency generally depending on the situation. Why can’t we at least be treated as well as employees?”

Another signatory wrote that:

“Amazon is destroying “The American Dream” for so many! First they allow Chinese to completely take over the site, and now all of us hardworking US based companies have to live in constant fear of a false IP complaint from a Chinese competitor! Amazon, take a step back and look at what you’re doing to people!!! You are destroying lives over nonsense!!!”

The goal of the petition is to reach 15,000 signatories. At present 12,000 have already signed their support.

CLICK HERE TO SIGN THE PETITION

If you have been affected by Amazon’s policy, please email us at vinnews@hotmail.com 

 

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16 COMMENTS

  1. Amazon treats its sellers with contempt but how many people have made false claims about a competitor or paid for a hacker to make their item come up first in search. Capitalism is a tough business. You don’t like it find another outlet.

  2. WHATS YOUR PROBLEM? AMAZON IS TRYING TO KEEP THE VENDORS HONEST….WHATS YOUR PROBLEM? IS IT A SIN TO SELL COUNTERFIET PRODUCTS OR NOT….WHERES YOUR BASE? WORRIED FOR THE THIEF OR WORRIED FOR THE VICTIM. WHAT ABOUT THE HONEST VENDOR EMPLOYING MANY MANY AND DUE TO THE THIEF HE HAS TO CUT HIS STAFF IN HALF. YOU MEAN HIONESTY AND IONGRETITY FOR ETHICS MEANS NOTHING?

  3. Relax Chosid. All I am saying is that Amazon is rife with fraud. But if you read the article you would see that they are ruining people over specious (look it up) claims. Amazon treats its vendors horribly. I sell on Amazon and I try my hardest to do business ethically and honestly. Amazon doesn’t care either way. But you need to be on Amazon to sell so you take it .

  4. Why cant people get together and start a major lawsuit once and for all. There are business laws in this country and Amazon is clearly not complying as they run with their own discriminatory dictatorial rules

  5. Amazon third-party sellers are a huge mess. Product reviews are all gamed in order to get products that look exactly like 30 other products that have terrible ratings to look good. Not sure about all the IP issues selling the same generic Chinese product raises, but not surprising that there are real issues on the platform. Sorry to hear that inevitably honest players may get caught up in this and in some cases by fraudulent behavior by competitors. All in all, the platform needs some work if Amazon wants to grow and remain as the one-stop-shop. Right now, I am skeptical about any unknown product I am looking into on Amazon, and that is not a good thing.

    • You can do your due diligence till tomorrow any company can kick off any seller just by complaining to Amazon, Amazon will take that product off and close that seller without any verification

      • 1. a once of prevention is worth a pound of cure.
        2. if you prove to amazon that you legit, they reopen you, yes you have downtime but that’s the cost of doing business, just like a brick and mortar loses sales during a heavy snow storm

  6. There was not one comment on this site, regarding the buyers. I’ve been buying from Amazon for over ten years. I am very appreciative of Amazon’s services, as more often than not, there is merchandise which I can buy on Amazon, which I need, which I can’t find at a retail outlet. Even if I could find what I’m looking for in a retail store, who wants to schlep to a retail outlet, and deal with parking problems, the crowds, rude sales personnel, waiting on long check out lines, with people couging and sneezing, etc? Now, at the push of a button, I can have various products shipped to my home, within a very brief time. Unlike other online sites (i.e. Walmart.com, J.C. Penney.com), I rarely have problems with Amazon. If a problem arises, either with the merchandise, or with delivery problems, Amazon will do its utmost to correct the problem. I don’t have such service with other online retail sites. Also, if a product is defective, Amazon will allow me to return the merchandise, via UPS, without my paying additional return shipping charges.

    can hav

  7. I buy goods from amazon all the time but sometimes you are not aware that your actually buying from some other company. The problem is that counterfeit goods are being sold – I personally had a counterfeit battery, shipped from NYC of all places – and it exploded in my camera and burnt my hand. I’m shocked to see the Jewish community involved in this. I will think twice before I visit any of their shops. Thank You Amazon

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