Sellers are balking at Amazon's newly updated standards on suppliers. In a post on January 3rd, Amazon said it updated its Supply Chain Standards, with which all sellers must comply.
"Our Supply Chain Standards apply to all selling partners and suppliers. Products sold in Amazon stores must comply with these standards and be produced in a way that respects human rights and the environment and protects the fundamental dignity of workers," Amazon wrote in an announcement for sellers.
The standards cover issues including Labor Rights (such as child labor, human trafficking, and discrimination and harassment); Health and Safety (including safe working conditions, sanitation and hygiene, and housing); Environment (including energy consumption and greenhouse gas emissions); Responsible and Sustainable Material and Commodity Sourcing; Land and Natural Resource Rights; Ethical Behavior (including bribery, corruption, and "responsible Artificial Intelligence"); Management Systems;
"Selling partners are third-party sellers and retail vendors that offer products for sale in Amazon's stores. Our Supply Chain Standards apply to every product sold in our stores and we expect selling partners to do their own due diligence in support of producing every product in safe, healthy, and inclusive work environments.
"We evaluate credible allegations of selling partner violations of our Supply Chain Standards including, but not limited to, those published by governments, civil society, reputable investigators, journalists, or human rights defenders. If we have reason to suspect certain products do not meet our standards, we may request that the selling partner demonstrate the products it sells in our store were manufactured in accordance with Amazon's Supply Chain Standards, such as providing evidence of auditing protocols, showing processes for assessing factory working conditions, engaging in unannounced audits, participating in an approved industry association that includes factory monitoring, or verifying where the products are made."
Some comments were brutal. Pointing to a provision on worker protections, a seller wrote, "Oh, so like a union that you guys keep trying to bust." And pointing to worker health and safety provisions, the seller wrote, "Oh like letting your workers use the restrooms like normal people instead of forcing them to run back and forth so that they don't get reprimanded when their widget count is down?"
"Talk about gaslighting," another seller wrote. "If this were truly adhered to 90% of the products sold here made in China would be banned."
"Sounds like Nike and Apple are no longer allowed to be sold on Amazon," wrote a third.
But the bigger concern for sellers was how Amazon would enforce the standards. One seller asked, wouldn't Amazon require documentation if it wanted to limit liability from bad actors on its platform? "It's a slippery slope," they said.
"I have a suspicion that we will have to get "Factory Compliance Letters" from all of our Manufacturers. It will be the next account health metric under IP Violations," said another.
One seller pointed to the futility of expecting sellers to comply with all of the provisions, writing in part, "This would only be reasonable if it applied to US manufacturers of their own products being sold on Amazon. Sellers can't police the entire world for basic human rights."
One seller used a bit of humor to relate what many sellers may be feeling about the job of selling online: "So, if I work myself to death, is that a reportable violation?"
Amazon's policy is laudable - and one would think most if not all sellers would be happy to comply if they could. But Amazon's announcement lacks any practical advice or training for sellers on how to comply with its supply-chain standards.
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Amazon Sellers Wonder How to Comply with Supplier Rules