Undermined: Amazon’s Third-Party Sellers Policy
Competition is the name of the game with selling products on the market, especially with e-commerce sites such as Amazon. If you’ve been selling on the site, Amazon’s policy prevents any use of a seller’s private and commercial data, specifically related to sales and marketing, which competitors can use to either improve or create their own product line.
Amazon has willingly embraced this policy, but has also launched and sold products on its own site that were clearly in competition using confidential sales data sold often at a lower cost. This, unfortunately, undermines third-party sellers on their site.
When Amazon supposedly used confidential third-party seller’s private sales and marketing information to create their very own products, they can end up sabotaging businesses if they offer their similar products at a lower cost. This theory can quickly turn into a reality, given that Amazon can afford to burn the profit to get a leg up on their competition, and of course, get better digital real estate on their own hosting platform!
These are just some tactics that the e-retailer purportedly uses to push its own business to success, at the expense of their third-party sellers.
What Can You Do?
If you are a third-party seller whose business has been inadvertently affected by a violation of the policies on Amazon’s website, you may be owed compensation. If you or somebody you know has suffered a loss of business suffered due of Amazon’s actions feel free to contact us today for help!
Here’s How Amazon’s Activities Affect Third-Party Sellers:
The e-commerce giant provides a platform for a lot of third-party sellers, where they can sell their wares online to anyone anywhere in the globe. The setup looks good on paper, and on the outside, seems to be a win for third parties and Amazon, who only takes a portion of each transaction completed on its site.
However, this is just the tip of the iceberg!
There are sellers that have already claimed that Amazon has taken their confidential and proprietary information and that the e-retailer has used said data to be in direct competition with the same sellers through the company’s own business on the site.
If you think about how Amazon can gather customer information and come up with sales trends that only they have direct access to, it’s not very difficult to think how a third-party vendor’s business can be ruined because of Amazon’s activities.
How can there be a healthy competition when Amazon has and will use confidential information, sell these products at a lower cost, and have the privilege of a greater online real estate to sell these products to?
What Are Your Next Steps?
If you are a third-party vendor, and your business has suffered a tremendous loss because of one of Amazon’s policies, you could be owed money for damages, and an attorney can help get the ball rolling here.
Legal help can help you retain evidence, build your case, present it to an independent arbitrator, and fight for the compensation that you deserve!
Editor’s note on the Amazon Third-Party Seller Lawsuits:
This piece is written about the recent Amazon third-party seller lawsuit investigation. If you are considered eligible to be among the class of consumers described in the class action lawsuit investigation, you may eventually take part in receiving any compensation the court may award.
If you believe that what is alleged in the Amazon third-party seller lawsuit investigation has affected you, please don’t hesitate to contact us today.
We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
Similarly, please check out our current list of Class Actions and Class Action Investigations, here.
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