Amazon Undercutting Marketplace Sellers
We have recently seen a dramatic fall in our sales going from turning over above £2000 a day on Amazon to a couple of hundred pounds so this is very significant to our business.
We have spotted that Amazon are selling products that we sell and are doing so at a greatly reduced price that nobody can compete with (plus they get the buy box nearly all the time) . We know for a fact that they have bought directly in huge quantities from the manufacturers in USA which is throttling the supply chain as distributors are out of stock. It is clear to see from what the UK distributor has ordered from the manufacturer and having not received has ended up being sold by Amazon. I see that they have put pressure on the manufacturer to take priority diverting stock to themselves with total disregard for UK businesses.
Of the shops in my industry that are still runnng through this crisis many have reported a huge drop in sales and lack of stock of this particular brand. These are peoples’ livlihoods.
I do feel that Amazon uses businesses that rely on this platform to create a “go to place” for products, then Amazon identifies those products that are most popular and sells them at a price that nobody can compete with because of fees and postage.
I would be interested to know who thinks that (although not illegal) Amazon’s practice is unethical and purposefully damaging to UK small and medium businesses.
20 replies
Seller_hC0hNVDuILaKO
In what way “unethical”?
Wouldn’t you offer a lower price to attract market share if you were able to do so and turn a healthy profit, regardless of the effect that doing so might have on your B&M neighbour?
Seller_sINj6g9FeuCHa
Although is nothing “unethical” about it in terms market competitiveness but I’ve noticed that as well. Considering that many top sellers run out of stock and inventory limitations, Amazon has an advantage over and acts upon.
Seller_lljyzgTxr5fgI
Nothing unethical about it. In simple (and blunt) terms, if you can’t compete you sell something else or sell on a different platform. This question raises its head every now and again on this forum and the answer is always the same. Regardless of who it was, if somebody was selling goods at cheaper prices than you could compete at, you would complain, would you not? If I could buy what you are selling cheaper than you then it would be me in the firing line, yes? Yes!
It is called ‘competition’. It is what all sellers do, in all types of market places, in every continent of the world. If I can buy cheaper than you then I can sell cheaper than you. If Tesco can buy cheaper than me then I’ve got no chance and have to sell something different or try a different market place. Amazon is a massive company with massive buying power. They can buy in an instant what you would take a lifetime to buy. That’s how they can sell things cheaper. These products you mention are clearly no longer suitable for you to sell, given the competition.
I said I would be blunt, but these things can’t be sugar coated.
Seller_taDBgt7LctucW
The unethical part is surely that Amazon use our sales data for their own purchasing decisions… probably.
Seller_Ce8pCzhbVPubz
Whilst I myself have experienced exactly this with Amazon, I don’t really blame Amazon for it… the minute I signed up to a sellers account I gave permission to Amazon to use my sales data however they choose. As much as it annoys me there’s no point complaining now.
Seller_Gyxl3CWGjSd3N
Pricing violations should work both ways and apply to Amazon themselves. All my products are at RRP in the UK and Amazon are massively undercutting and i do mean massively to the point they are almost giving it away as I know they get from the same supplier as me and i know their discounts. That isnt them making money, its them doing whatever they can to hurt other sellers on here, plain and simple. Lets put it this way, if i was to put everything on sale for £1 tonight to do the same to them i will guarantee i have emails galore within 24 hours for pricing violations and my listing suddenly being suspended. In fact i still have 2 listing suspended for daring to be cheaper than them and despite appeals they will not let me sell them as i am considerably more expensive despite being cheaper on both? I particularly love the “sell something else” line as well when as a business, you have built yourself around a particular market and product range. Competition is no problem whatsoever but the biggest player on the block doing what they would never allow another seller on here to do isn’t. yes I know…if i dont like it…
Seller_W7kmz38MNQxpP
Maybe it is not ethical, but it is immoral and Amazon will forever hide behind the banner of capitalism to defend their actions.
It is well established that Amazon use sellers to determine items that sell well then seek those items to undercut, regardless of the consequences to those small businesses and their families.
I think it is reprehensible (and, no, this has not happened to me so I am not someone with an agenda, just a heart) but it will not change. Alas, for all of our combined whinging (and I have done my fair share) we all willingly play the game. I hedge my bets by buying Amazon stock: at least I can capitalise on their corporate greed.
Amazon Undercutting Marketplace Sellers
We have recently seen a dramatic fall in our sales going from turning over above £2000 a day on Amazon to a couple of hundred pounds so this is very significant to our business.
We have spotted that Amazon are selling products that we sell and are doing so at a greatly reduced price that nobody can compete with (plus they get the buy box nearly all the time) . We know for a fact that they have bought directly in huge quantities from the manufacturers in USA which is throttling the supply chain as distributors are out of stock. It is clear to see from what the UK distributor has ordered from the manufacturer and having not received has ended up being sold by Amazon. I see that they have put pressure on the manufacturer to take priority diverting stock to themselves with total disregard for UK businesses.
Of the shops in my industry that are still runnng through this crisis many have reported a huge drop in sales and lack of stock of this particular brand. These are peoples’ livlihoods.
I do feel that Amazon uses businesses that rely on this platform to create a “go to place” for products, then Amazon identifies those products that are most popular and sells them at a price that nobody can compete with because of fees and postage.
I would be interested to know who thinks that (although not illegal) Amazon’s practice is unethical and purposefully damaging to UK small and medium businesses.
Amazon Undercutting Marketplace Sellers
We have recently seen a dramatic fall in our sales going from turning over above £2000 a day on Amazon to a couple of hundred pounds so this is very significant to our business.
We have spotted that Amazon are selling products that we sell and are doing so at a greatly reduced price that nobody can compete with (plus they get the buy box nearly all the time) . We know for a fact that they have bought directly in huge quantities from the manufacturers in USA which is throttling the supply chain as distributors are out of stock. It is clear to see from what the UK distributor has ordered from the manufacturer and having not received has ended up being sold by Amazon. I see that they have put pressure on the manufacturer to take priority diverting stock to themselves with total disregard for UK businesses.
Of the shops in my industry that are still runnng through this crisis many have reported a huge drop in sales and lack of stock of this particular brand. These are peoples’ livlihoods.
I do feel that Amazon uses businesses that rely on this platform to create a “go to place” for products, then Amazon identifies those products that are most popular and sells them at a price that nobody can compete with because of fees and postage.
I would be interested to know who thinks that (although not illegal) Amazon’s practice is unethical and purposefully damaging to UK small and medium businesses.
20 replies
20 replies
Seller_hC0hNVDuILaKO
In what way “unethical”?
Wouldn’t you offer a lower price to attract market share if you were able to do so and turn a healthy profit, regardless of the effect that doing so might have on your B&M neighbour?
Seller_sINj6g9FeuCHa
Although is nothing “unethical” about it in terms market competitiveness but I’ve noticed that as well. Considering that many top sellers run out of stock and inventory limitations, Amazon has an advantage over and acts upon.
Seller_lljyzgTxr5fgI
Nothing unethical about it. In simple (and blunt) terms, if you can’t compete you sell something else or sell on a different platform. This question raises its head every now and again on this forum and the answer is always the same. Regardless of who it was, if somebody was selling goods at cheaper prices than you could compete at, you would complain, would you not? If I could buy what you are selling cheaper than you then it would be me in the firing line, yes? Yes!
It is called ‘competition’. It is what all sellers do, in all types of market places, in every continent of the world. If I can buy cheaper than you then I can sell cheaper than you. If Tesco can buy cheaper than me then I’ve got no chance and have to sell something different or try a different market place. Amazon is a massive company with massive buying power. They can buy in an instant what you would take a lifetime to buy. That’s how they can sell things cheaper. These products you mention are clearly no longer suitable for you to sell, given the competition.
I said I would be blunt, but these things can’t be sugar coated.
Seller_taDBgt7LctucW
The unethical part is surely that Amazon use our sales data for their own purchasing decisions… probably.
Seller_Ce8pCzhbVPubz
Whilst I myself have experienced exactly this with Amazon, I don’t really blame Amazon for it… the minute I signed up to a sellers account I gave permission to Amazon to use my sales data however they choose. As much as it annoys me there’s no point complaining now.
Seller_Gyxl3CWGjSd3N
Pricing violations should work both ways and apply to Amazon themselves. All my products are at RRP in the UK and Amazon are massively undercutting and i do mean massively to the point they are almost giving it away as I know they get from the same supplier as me and i know their discounts. That isnt them making money, its them doing whatever they can to hurt other sellers on here, plain and simple. Lets put it this way, if i was to put everything on sale for £1 tonight to do the same to them i will guarantee i have emails galore within 24 hours for pricing violations and my listing suddenly being suspended. In fact i still have 2 listing suspended for daring to be cheaper than them and despite appeals they will not let me sell them as i am considerably more expensive despite being cheaper on both? I particularly love the “sell something else” line as well when as a business, you have built yourself around a particular market and product range. Competition is no problem whatsoever but the biggest player on the block doing what they would never allow another seller on here to do isn’t. yes I know…if i dont like it…
Seller_W7kmz38MNQxpP
Maybe it is not ethical, but it is immoral and Amazon will forever hide behind the banner of capitalism to defend their actions.
It is well established that Amazon use sellers to determine items that sell well then seek those items to undercut, regardless of the consequences to those small businesses and their families.
I think it is reprehensible (and, no, this has not happened to me so I am not someone with an agenda, just a heart) but it will not change. Alas, for all of our combined whinging (and I have done my fair share) we all willingly play the game. I hedge my bets by buying Amazon stock: at least I can capitalise on their corporate greed.
Seller_hC0hNVDuILaKO
In what way “unethical”?
Wouldn’t you offer a lower price to attract market share if you were able to do so and turn a healthy profit, regardless of the effect that doing so might have on your B&M neighbour?
Seller_hC0hNVDuILaKO
In what way “unethical”?
Wouldn’t you offer a lower price to attract market share if you were able to do so and turn a healthy profit, regardless of the effect that doing so might have on your B&M neighbour?
Seller_sINj6g9FeuCHa
Although is nothing “unethical” about it in terms market competitiveness but I’ve noticed that as well. Considering that many top sellers run out of stock and inventory limitations, Amazon has an advantage over and acts upon.
Seller_sINj6g9FeuCHa
Although is nothing “unethical” about it in terms market competitiveness but I’ve noticed that as well. Considering that many top sellers run out of stock and inventory limitations, Amazon has an advantage over and acts upon.
Seller_lljyzgTxr5fgI
Nothing unethical about it. In simple (and blunt) terms, if you can’t compete you sell something else or sell on a different platform. This question raises its head every now and again on this forum and the answer is always the same. Regardless of who it was, if somebody was selling goods at cheaper prices than you could compete at, you would complain, would you not? If I could buy what you are selling cheaper than you then it would be me in the firing line, yes? Yes!
It is called ‘competition’. It is what all sellers do, in all types of market places, in every continent of the world. If I can buy cheaper than you then I can sell cheaper than you. If Tesco can buy cheaper than me then I’ve got no chance and have to sell something different or try a different market place. Amazon is a massive company with massive buying power. They can buy in an instant what you would take a lifetime to buy. That’s how they can sell things cheaper. These products you mention are clearly no longer suitable for you to sell, given the competition.
I said I would be blunt, but these things can’t be sugar coated.
Seller_lljyzgTxr5fgI
Nothing unethical about it. In simple (and blunt) terms, if you can’t compete you sell something else or sell on a different platform. This question raises its head every now and again on this forum and the answer is always the same. Regardless of who it was, if somebody was selling goods at cheaper prices than you could compete at, you would complain, would you not? If I could buy what you are selling cheaper than you then it would be me in the firing line, yes? Yes!
It is called ‘competition’. It is what all sellers do, in all types of market places, in every continent of the world. If I can buy cheaper than you then I can sell cheaper than you. If Tesco can buy cheaper than me then I’ve got no chance and have to sell something different or try a different market place. Amazon is a massive company with massive buying power. They can buy in an instant what you would take a lifetime to buy. That’s how they can sell things cheaper. These products you mention are clearly no longer suitable for you to sell, given the competition.
I said I would be blunt, but these things can’t be sugar coated.
Seller_taDBgt7LctucW
The unethical part is surely that Amazon use our sales data for their own purchasing decisions… probably.
Seller_taDBgt7LctucW
The unethical part is surely that Amazon use our sales data for their own purchasing decisions… probably.
Seller_Ce8pCzhbVPubz
Whilst I myself have experienced exactly this with Amazon, I don’t really blame Amazon for it… the minute I signed up to a sellers account I gave permission to Amazon to use my sales data however they choose. As much as it annoys me there’s no point complaining now.
Seller_Ce8pCzhbVPubz
Whilst I myself have experienced exactly this with Amazon, I don’t really blame Amazon for it… the minute I signed up to a sellers account I gave permission to Amazon to use my sales data however they choose. As much as it annoys me there’s no point complaining now.
Seller_Gyxl3CWGjSd3N
Pricing violations should work both ways and apply to Amazon themselves. All my products are at RRP in the UK and Amazon are massively undercutting and i do mean massively to the point they are almost giving it away as I know they get from the same supplier as me and i know their discounts. That isnt them making money, its them doing whatever they can to hurt other sellers on here, plain and simple. Lets put it this way, if i was to put everything on sale for £1 tonight to do the same to them i will guarantee i have emails galore within 24 hours for pricing violations and my listing suddenly being suspended. In fact i still have 2 listing suspended for daring to be cheaper than them and despite appeals they will not let me sell them as i am considerably more expensive despite being cheaper on both? I particularly love the “sell something else” line as well when as a business, you have built yourself around a particular market and product range. Competition is no problem whatsoever but the biggest player on the block doing what they would never allow another seller on here to do isn’t. yes I know…if i dont like it…
Seller_Gyxl3CWGjSd3N
Pricing violations should work both ways and apply to Amazon themselves. All my products are at RRP in the UK and Amazon are massively undercutting and i do mean massively to the point they are almost giving it away as I know they get from the same supplier as me and i know their discounts. That isnt them making money, its them doing whatever they can to hurt other sellers on here, plain and simple. Lets put it this way, if i was to put everything on sale for £1 tonight to do the same to them i will guarantee i have emails galore within 24 hours for pricing violations and my listing suddenly being suspended. In fact i still have 2 listing suspended for daring to be cheaper than them and despite appeals they will not let me sell them as i am considerably more expensive despite being cheaper on both? I particularly love the “sell something else” line as well when as a business, you have built yourself around a particular market and product range. Competition is no problem whatsoever but the biggest player on the block doing what they would never allow another seller on here to do isn’t. yes I know…if i dont like it…
Seller_W7kmz38MNQxpP
Maybe it is not ethical, but it is immoral and Amazon will forever hide behind the banner of capitalism to defend their actions.
It is well established that Amazon use sellers to determine items that sell well then seek those items to undercut, regardless of the consequences to those small businesses and their families.
I think it is reprehensible (and, no, this has not happened to me so I am not someone with an agenda, just a heart) but it will not change. Alas, for all of our combined whinging (and I have done my fair share) we all willingly play the game. I hedge my bets by buying Amazon stock: at least I can capitalise on their corporate greed.
Seller_W7kmz38MNQxpP
Maybe it is not ethical, but it is immoral and Amazon will forever hide behind the banner of capitalism to defend their actions.
It is well established that Amazon use sellers to determine items that sell well then seek those items to undercut, regardless of the consequences to those small businesses and their families.
I think it is reprehensible (and, no, this has not happened to me so I am not someone with an agenda, just a heart) but it will not change. Alas, for all of our combined whinging (and I have done my fair share) we all willingly play the game. I hedge my bets by buying Amazon stock: at least I can capitalise on their corporate greed.
