To address the problems and to overcome the complaints of third-party sellers, Amazon updated its suspension policy and terms of service. It reached a settlement with German authorities of antitrust regarding its marketplace policies and Amazon officially announced that it will now give a thirty days’ notice to sellers before their suspension. Moreover, they will provide some particular reasons to those sellers that blocked for supposed legal infringements.
According to the announced agreement by the Germany Federal Cartel Office, before this modification in terms of service, Amazon had the authority to terminate the accounts of the sellers at any time without providing any justification or notice.
However, the marketplace experts and sellers who are familiar with the progressively cavalier approach of Amazon to termination have a worry that the changes will take effect on the 16th of Aug world widely. Moreover, it does not go far enough to guard brokers against having their business instantly interrupted or even ruined without alternative.
A former Marketplace manager of Amazon, Peter Kearns and now working with 180Commerce said that it is a positive step that Amazon takes. Whereas, the modifications and changes failed to report some of the actual issues across the problems of suspensions.
The marketplace, a curse and a blessing for Amazon since the firm flung starting their service to several outside sellers globally, especially from China. Third-party dealers now account for fifty-eight percent of products sold on Amazon, over from thirty-one percent ten years ago and produce big margins than a retail model of Amazon because sellers pay for all types of services such as advertising, storage, and shipping and keep Amazon to spend heavily on inventory.
Amazon CEO, Jeff Bezos Statement
CEO of Amazon, Jeff Bezos, expresses in his yearly shareholder letter that the third-party sellers are kicking their first-party butt. However, with a number of new sellers sourcing items from producers, forgeries have destroyed the marketplace, leading to a swarm of breach claims.
Antitrust office of Germany wrote that it looked into the suspension issue primarily because different sellers criticized the unexpected and unsubstantiated cancellations and causing loss of turnover. Regulators of the United States have not taken a particular action, however presidential candidates including Sen and Elizabeth Warren.