Amazon has provoked outrage from its established vendors for trying to introduce a delay in its payments for goods sold via its platform. In what has been described as an Etsy style backfire, Amazon gave its vendors in the UK and Europe little to no notice of its decision to hold payments for seven days after shipping. Some 35,000 vendors would be impacted by the change. Amazon argued that it needs to ensure that sufficient funds are available for it to cover product returns and associated refunds.
Amazon is now on the back foot having caved in to pressure from vendors as well as government ministers, agreeing to postpone the change in terms until January 31st for those who protest. Some are, however, so angered by Amazon’s lack of appreciation for their loyalty that they are actively seeking alternative platforms which are less draconian.
New sellers have had to accept the seven day delay in release of funds terms since 2016.
In other news, Amazon has moved to cease selling a number of its own clothing brands. Presumably, this follows investigations into its use of the sales demand data it gathers from other vendors’ sales on the site to guide product development which, say market watchers, gives it most unfair advantage over its marketplace vendor clients.
Share