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Wed Apr 1 2020 21:18:44

What Triggers Amazon to Suspend Sellers for Price Gouging

By: Ina Steiner

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Amazon tried to clear up confusion on Wednesday about what triggers the company to suspend sellers for price gouging during the current COVID-19 pandemic. Amazon and other online marketplaces are under pressure from regulators, lawmakers, and consumers alike to keep sellers from listing essential goods at excessive prices during the public health crisis. 

The public pressure is fueled by news reports showing severe shortages of protective gear (PPE) for healthcare workers.

On the other hand, some sellers say Amazon is targeting their offers despite being priced the same or less than Amazon's own product offers.

In a post on Seller Central, Amazon said it considers state laws when assessing price gouging, but that those laws vary.

"Amazon's Marketplace Fair Pricing Policy protects our customers from unfair, excessive, and misleading prices. We recognize there may be some confusion as to what may trigger offer removal or account suspension for price gouging under this policy," it wrote.

It explained how it looks to ensure sellers comply with state laws, writing:

"While state price gouging laws vary, in general they look to the average sale price (ASP) of an item preceding a state of emergency and prohibit price increases over that ASP due to the emergency. Some states cap those price increases at fixed amounts (10%, for example) while others prohibit "unconsciously excessive" price increases without a fixed cap. Many permit exceptions when the seller can show that the increase is due to the increased costs of goods, freight, or labor.

"Our systems attempt to account for these variations in state law while recognizing that the costs of many goods are increasing due to the worldwide effects of the COVID-19 pandemic. As a starting point, we look at the ASP of the product (excluding any offers that are excessive) as well as the prevailing prices of the product."

Some sellers have expressed frustration about Amazon's enforcement of the Marketplace Fair Pricing Policy, and Wednesday's announcement did not assuage everyone's concerns. One seller said Amazon's enforcement of the policy is actually keeping sellers from listing essential goods out of fear of getting suspended. 

"We would happily stock products that customers need, but we don't know what price we have to price at or below to not trigger Amazon's arbitrary and confusing algorithm," the seller wrote. "Your Algorithm is harming customers. Give us guidance. This announcement is so arbitrary and not tactile advice."



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by: Moonwishes This user has validated their user name.

Thu Apr 2 02:27:00 2020

I do not sell anything that would be considered 'essential' goods. I sell mostly sewing patterns which has been flying out the door. In the midst of this, Amazon has taken it upon itself on listings that have been on the site for years to take down some of my patterns due to "Marketplace Fair Pricing policy". I don't know who is looking at the prices that I have had my items listed at, and remember I said they have been listed for years at that price, to suddenly take down the listing because someone somewhere or a bot somewhere decided it was too high. Mostly on Designer vogue patterns that are now OOP and still being sold for lest than the MSRP. I don't get any of it. Amazon has taken down some many things as they 'deal with the crisis', however, if they are that busy why bother with a sewing pattern that may be $1-2 too much? Or if you send in a contact to say that a pattern is in the wrong category, you get a message back saying they are too busy to deal with it currently. I have worked a lot of jobs and even is some department is being crunched, that doesn't mean they all are. Yet Amazon seems to have taken this point of time to not give any help on anything. It makes no sense.  

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by: Diogenes This user has validated their user name.

Thu Apr 2 08:02:22 2020

Moonshinewishes you have my sympathy. That sounds like these marketplace clowns all over. I used to sell vintage on Etsy and their knee jerk reactions have to be seen to be believed. Ebay are no better.

My advice would be to find new outlets for your vintage patterns. Have you tried some of the private buying/selling groups on Facebook and other social media? There are lots of crafters, re-enactors and so on with time on their hands just now and none of these silly price gouging regulations or state taxes to conted with. Just the group rules whatever they are. If you have goods that people want to buy and which are fairly priced that may be the way to go.

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by: Chicago48 This user has validated their user name.

Thu Apr 2 08:17:39 2020

@Moonwishes: Amazon has taken it upon itself on listings that have been on the site for years to take down some of my patterns
^^
They have bots that patrol the site.  You need to talk to a human about the patterns -- or take the patterns to Etsy.  I'v been buying protective gloves and masks like crazy from Etsy.  I'm sure this is a good time and good profits for those Etsy businesses.

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by: Chicago48 This user has validated their user name.

Thu Apr 2 08:19:07 2020

What is price gouging?  I guess some of the clothing I see is price gouging too?  I might buy a top for $1 and sell it for $20, is that price gouging?

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by: FeelingFroggy This user has validated their user name.

Thu Apr 2 08:30:48 2020

I personally don't care what triggers them to take down an auction as long as they are doing it. If you happen to sell something that gets caught in the cross fire then I would believe there is something in the description that triggered them to take it down. You would be better served changing the description.

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This user has validated their user name. by: iheartjacksparrow

Thu Apr 2 12:18:11 2020

@Moonwishes - I know you sell on eCrater so I'm assuming you also have your "offending" patterns listed there.

Maybe the Amazon bots thought you were selling patterns for face masks, and since you can find free patterns for masks all over the internet, the bots thought you were price gouging?  

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by: purpleiris This user has validated their user name.

Fri Apr 3 10:23:15 2020

Just another example of the crooks taking advantage of a situation to control who does what. Does anyone else find it strange that this pandemic would come just at the time when the DOJ is gearing up to go after them? And look at them all making a killing off of it while the little guy suffers!

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by: mindelec This user has validated their user name.

Sat Apr 4 00:08:53 2020

Yet there are listing for face masks selling them for $25 for 50. Last summer I bought 100 for $8.



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