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Thu July 6 2023 14:27:08

If Your Supplier Is Shady then So Are You

By: Ina Steiner

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How well do you vet your suppliers when sourcing goods to sell online? Some Amazon sellers are learning a hard lesson, according to a report in CNBC, which spoke with six sellers recently suspended by Amazon.

Just a few years ago, merchants would visit prospective suppliers at trade shows or at their warehouses, but now they snap up deals on private chat groups and have the inventory sent directly to Amazon's FBA warehouses.

"Amazon sellers are supposed to vet suppliers before they work with them," CNBC reported. "However, unraveling where the goods came from can be challenging, as it's common for resold items to be bought and sold by several parties before being purchased by a merchant and listed on Amazon."

CNBC reviewed documents provided by the six sellers and found a "convoluted web of wholesale and liquidation companies that frequently overlapped, and advertised similar products,..."

"Sellers told CNBC they had no idea the products they sold were stolen and that Amazon provides little evidence to help them find the problematic items and suppliers." It appears that just as some merchants may not knowingly sell fakes, their suppliers may not either. But the fate of all suspended sellers shows how important the vetting process is when it comes to evaluating suppliers.

Stories about the sale of counterfeit and stolen goods usually focus on the problem for retailers and consumers. The CNBC piece is different in that it looks deeply into the issue from the Amazon seller's perspective and is well worth reading: "Amazon sellers say they were kicked off site after unknowingly hawking stolen goods" (July 6, 2023). Sellers, take heed.



Comments (10) | Permalink

Readers Comments

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: GetAGrip This user has validated their user name.

Thu Jul 6 16:02:17 2023

I would think its the sellers who should be responsible to verify the sellers. Why would Amazon be responsible. You the seller by the junk without knowing where it comes from and think Amazon should do your job. Now thats precious. Do your job and accept responsibility for the items.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: pace306 This user has validated their user name.

Thu Jul 6 16:41:16 2023

Correction - the REAL "Slim Shady" is Amazon itself and their behavior towards smaller sellers.

ALOT of people (I dont but know plenty who do) drop ship - so they cant see the items.

ALOT of people buy closeouts that arent in a warehouse yet - so they cant see the items.

ALOT of people buy overseas items (doesnt have to be from China - some/alot are EU) and THEY cant see the items.

When Amazon howls and blows smoke - you know they are lieing - its just that simple.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: GetAGrip This user has validated their user name.

Thu Jul 6 18:38:09 2023

@Pace

You can use any excuse you want but the seller is responsible for what they sell. Thats the problem with people now a days. They make excuses for everything. I know its Thumpers fault.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: pace306 This user has validated their user name.

Thu Jul 6 22:48:30 2023

There’s no excuse- buy from distributors or direct- sending the items into FBA directly means you font see the items (duh).

Amazons excuse that %.000000001 of its sellers sell “stolen items” is obfuscation.

“Just a few years ago, merchants would visit prospective suppliers at trade shows or at their warehouses, but now they snap up deals on private chat groups and have the inventory sent directly to Amazon's FBA warehouses.” is how things work and have worked for that last 40 years.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

This user has validated their user name. by: COVID-19

Fri Jul 7 00:01:16 2023

You know what they say: "If you lie down with dogs, you get up with fleas".

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: shut1968 This user has validated their user name.

Fri Jul 7 06:03:32 2023

My issue is when the stuff gets sent back to Amazon Warehouses for whatever reason it gets taken by Amazon and then sold back off in bulk pallet lots for pennies on the dollar and circulated back into the system again.. the seller gets hit in metrics and possibly suspended and then Amazon gets one last hurrah making money off of it anyway by selling the same stuff the seller was suspended/dinged for in the first place.. THAT'S where the shady sh*t comes into play........  

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: GetAGrip This user has validated their user name.

Fri Jul 7 07:25:23 2023

@ shut1968

Why not try sending your own stuff. Never could understand why someone needs to pay some third party to send their junk to the buyer. Man up do it yourself. Your responsibility. You know what is happening yet you continue to let Amazon send your stuff.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: GetAGrip This user has validated their user name.

Fri Jul 7 10:29:33 2023

@pace306

DUH try having the items sent to you where you can inspect them. If you don't want to do that then send them to Amazon and when Amazon takes them off THEIR site and tells you that they are fakes. THEN DON'T WHINE. They are just doing the job that you should be doing. Time for the sellers to accept responsibility for leaving the tough work to someone else.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: pace306 This user has validated their user name.

Fri Jul 7 14:22:27 2023

Why should a seller pay to ship goods to his place and then again into FBA???

It’s Amazon that’s the issue not sellers.

First let Amazon remove all the listings that sell illegal items and clean up all the Chinese trash before harassing sellers for nothing.

Perminate Link for If Your Supplier Is Shady then So Are You   If Your Supplier Is Shady then So Are You

by: gregtoys This user has validated their user name.

Fri Jul 7 14:27:55 2023

The real problem here is that Amazon doesn't care about the suppliers but the IP rights holders. For example, Disney licenses Star Wars to Hasbro and you purchase direct from Hasbro. This is how things have worked forever.

Now an Amazon bot decides you may be infringing on protected IP. You now need approval from Disney not Hasbro so resolve the IP complaint. Disney has no relationship with you. The only other option is to provide a copy of Disney and Hasbro's licensing agreement (like they would ever share that).

Amazon is throwing good sellers under the bus to boost the number of "counterfeits" it can say were caught for PR purposes.  



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