App developer Shifty Jelly complains about Amazon’s business practices related to their App Store, in one of the latest stories of angry sellers who wind up selling elsewhere. His/her grudge? Apparently, Amazon’s popular Free App of the Day promotion doesn’t compensate developers a single cent when a given app is featured. (Whether this affects Techcitement’s regular SnApp Judgments column is being discussed.) The openly stated terms claim a developer will receive 20 percent of the regular asking price for the application each time it’s downloaded as a Free App of the Day. In private, however, Amazon sends developers a private agreement shortly before selecting an app to feature, stating the alternate terms with no compensation. Amazon even places restrictive language at the bottom of the correspondence, barring public discussion of the changes. Shifty Jelly goes on to list additional complaints with Amazon including having no ability to set the price of one’s own app. (Amazon not only picks their own selling price, but doesn’t give developers an avenue to reject the chosen price either.) Unlike other App Stores, Shifty Jelly also expresses surprise that Amazon’s doesn’t allow a developer to remove his/her own app. Removal requires emailing Amazon with a formal request.
Internet Retailer points out a number of large retailers leaving Amazon’s marketplace, as well. Along with Macy’s, The Gap, and Buy.com, smaller furniture dealer Carolina Rustica is also leaving Amazon. Their president, Richard Sexton, says he no longer sells on Amazon due to a lack of control over how many of his products appeared on the website. He also believes Amazon’s service to third party sellers has taken a nosedive in recent years. Nathan Decker, the senior e-commerce manager at sports merchant Evo.com, says “We left not for a lack of wanting to sell on Amazon, but because of the stringent requirements. For us, it boils down to the fact that Amazon didn’t let us market to customers we sell to on Amazon.com.”
Target stores left Amazon’s e-commerce platform in 2009, with president Steve Eastman quoted as saying, “We believe it is in Target’s best interest going forward to assume full control over the design and management of Target’s e-commerce technology platform, fulfillment and guest services operations.”
A quick look at Amazon’s Seller Community forums reveals more discontentment, mingled with satisfied sellers. A popular message post titled Amazon Rules For New Sellers aka This Ain’t eBay, written at the end of 2008, does a good job of spelling out the rules of conducting business on Amazon, but does so with an underlying tone; sellers should feel privileged to be allowed to sell on Amazon and will quickly have their account suspended for breaking any of the rules, even once. Noteworthy rules include the third one in their list barring users from having multiple accounts.
“This includes anyone in your house, at your address, on your bank account, on your credit card, or sharing your computer, your Wi-Fi network or your IP address.”
Has Amazon made itself into a monters to its sellers? Image by Steve Keyes
It’s easy to run afoul of this one if you move in with another Amazon user or you happen to be a college student sharing a dorm and internet connection with another student who sells on their website. Another rule worth a second look is #12, stating the inability to block a buyer.
“They buy, you ship, period. You are also not allowed to exclude APO/AFO, AK, HI, PR or GU, regardless of what you may see on other listings.”
Essentially, this last rule means an Amazon seller has no tool at his/her disposal to reject a transaction from a known troublemaker who generates an excessive number of returns.
Of course, one of the best known merchant disputes with Amazon is the the Toys ‘R Us lawsuit, filed in 2004 and settled two years later, over Toys ‘R Us desire to leave Amazon and form an independent online toy store. Yet as of four days ago? Toys ‘R Us announces availability of Amazon’s Kindle ebook reader in their retail stores. Ultimately, it appears Amazon is big enough, and able to generate enough revenue for those co-operating with them, that they thrive despite an authoritarian attitude towards merchants.
Amazon is a rip-off to sellers. The buyer is always right no matter how much they scam the sellers. Amazon suspended my account over the most crazy reason and now they want to hold my money that is owed to me for 90 days. If they do this to every seller they suspend just think of the interest they must generate over stealing our money for 3 months. Jackasses!