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Toys and Games

Coming shortages could make price gouging tempting again

November 24, 2020 Leave a Comment

3P sellers should avoid the urge to raise prices on necessities

By: Lesley Hensell

Don’t be that seller.

The warning signs are everywhere. Manufacturers and retailers who sell grocery, medical and personal care items expect new runs on necessities in the coming weeks. Already, plans are being made to institute new buying limits on customers at retail stores.

This could easily kick off a new cycle for Amazon sellers eager to profit off of shortages in brick-and-mortar stores. We saw it last spring. Retail arbitrage sellers – and even those with wholesale relationships – increased prices for items in short supply. Once again, shortages could make price gouging tempting.

Amazon sees this as price gouging. And Amazon shuts down accounts for price gouging.

Price gouging

What is price gouging?

It’s difficult to find a dictionary definition of price gouging that includes practical terms, like percentages. Legally speaking, different states have different standards. Like a Supreme Court justice once said about a different hard-to-define topic, “I know it when I see it.”

Most folks can agree that doubling a price during a time of scarcity looks and feels like price gouging, especially for essential items. But on Amazon, the standard it much stricter.

Prior to Covid, when natural disasters hit, Amazon would sometimes punish sellers who raised prices more than 10 percent. During the Covid shutdowns last spring, even a nominal price increase on necessities could land a seller in hot water and result in their ASIN being shut down, their account receiving a warning, or worst of all their account being suspended. In April, we discussed enforcement issues such as gouging and warned sellers about linked accounts here. Once again, both seem to be on the rise.

What should sellers expect?

In coming days, weeks – and heaven forbid, months – there will be shortages. Of course, these shortages could make price gouging tempting for third-party Amazon sellers to buy in quantity when they can and sell for a huge profit.

Just don’t do it. Your account depends on it. Don’t be that seller.

Above all, if you have questions about keeping your account in good standing or getting reinstated? Give us a call at Riverbend 877-289-1017


Lesley Hensell

Lesley is co-founder and co-owner of Riverbend Consulting, where she oversees the firm’s client services team. She has personally helped hundreds of third-party sellers get their accounts and ASINs back up and running. Lesley leverages two decades as a small business consultant to advise clients on profitability and operational performance. She has been an Amazon seller for almost a decade, thanks to her boys (18 and 13) who do most of the heavy lifting.

Filed Under: 3P, Account Health, Amazon, Amazon Appeal, Amazon seller, Amazon Seller Central, General, Inventory Sourcing, Toys and Games Tagged With: 3P, Amazon, Amazon account, Amazon appeal, Amazon seller, Amazon Seller Central, Covid, Necessities, Price gouging, Price increase, Seller Support, Shortage

Selling toys and games: play by the rules

October 30, 2020 Leave a Comment

Selling toys and games on Amazon? Be ready.

By: Caitlyn Way

Every year in prep for Q4 and the holiday season, Amazon emails sellers updating them on this year’s requirements. These updated requirements usually sent to those who sell toys and games on their platform throughout the holiday season.
These requirements can vary slightly year by year. They also differ from the normal Q1-3 requirements for Toys and Games.

For MFN Sellers in 2020, the requirements are as follows:

Performance Criteria based on Seller-Fulfilled Orders (not fulfilled by Amazon)

  • Your first sale on Amazon must be prior to September 1, 2020 and does not need to be specific to Toys & Games.
  • You must have processed and shipped at least 25 seller-fulfilled orders from August 15, 2020 through October 14, 2020.
  • Pre-fulfillment cancel rates must be no greater than 1.75% from September 15, 2020 through October 14, 2020.
  • Late shipment rates must be no greater than 4% from September 15, 2020 through October 14, 2020.
  • Order defect rate must be no greater than 1% as of October 14, 2020.Amazon games and toys

If your Amazon account doesn’t meet these requirements:

Amazon encourages you to take corrective action now to be able to sell through seller fulfillment in Toys & Games during the holiday season.

We have included the following suggestions to remain eligible or improve your performance.

  • Monitor your customer metrics and take corrective action when necessary.
  • Check your orders frequently in the Manage Orders section of your account.
  • Minimize order cancellations; only show inventory for sale that you have available to ship.
  • Update your account status when you are not available to fulfill orders (for example, on vacation).
  • Ship orders and confirm shipment in a timely manner.
  • Ensure your seller policies are up-to-date.
You can also review the below Seller Central Help Pages for more information:
Holiday Selling Requirements in Toys & Games
Monitor your account health
If you have any questions on these standards for the holiday season be sure to contact Riverbend Consulting. 877-289-1017

Caitlyn WayCait provides support to our clients and our operations team. She creates meaningful monthly reports that help us identify trends in client accounts. In addition, she helps manage workflow and ensure everything runs smoothly. Cait spent two years in Amazon Seller Support, where she specialized in feeds, variations, escalations, product compliance and gating. In her off time enjoys baking and exploring with her two daughters.

Filed Under: Account Health, Amazon, General, Seller Central, Seller Performance, Supply Chain, Toys and Games Tagged With: Account Health, Amazon, Amazon seller, Inventory, Q4, Toys and Games

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