January 9, 2018

By:

Lesley Hensell

Amazon allows big dog retailers to break rules, hurt small 3P sellers

Not all players on the Amazon platform are treated equally. And the larger the company, the more likely Amazon will allow them to break the rules and hurt small sellers.

For a while now, manufacturers, retailers and large distributors – as well as rogue third-party sellers – have abused Amazon’s rules to get listings and other third-party sellers suspended. If a manufacturer doesn’t want a 3P seller to list their product, they will file a false claim for intellectual property infringement, trademark infringement or copyright infringement.

What makes these claims false? The third-party sellers listing the product are simply not breaking any rules. And the claimant knows it – they are simply using an unethical workaround to try and get Amazon to enforce distribution or MAP pricing. And everyone knows it – including Amazon.

When a third-party seller receives this kind of complaint, Amazon tells them to work it out with the IP holder. In most cases, though, the IP holder refuses to respond.

If the third-party seller appeals to Amazon about the lack of communication, Amazon typically removes the black mark from the seller’s account. But if the complaining party is a large retailer or manufacturer – even if they are lying! – Amazon simply won’t help.

Disgraceful.