To deal with an issue which has afflicted the e-commerce business of Amazon, the mega e-retailer has revised its service terms for 3rd– party traders, this week.
Amazon underwent an agreement with the GAA (German Antitrust Authorities) regarding its marketplace policies, and as a part of that settlement a thirty- day notice will be given to sellers charged with suspensions and deliver particular reasons to sellers blocked for ‘ALI’ (Alleged Legal Infringements). Until now, the company could block accounts of sellers without justification, at any time, as per the contract declared by the FCO (Federal Cartel Office) of Germany.
The new changes which will be implemented from August 16 have left marketplace experts and sellers worried. The prior suspension method of Amazon was tagged cavalier by them and now they apprehend the renewed policy would do any good, by protecting their business getting disrupted abruptly, or even annihilated, without any choice.
As per a statement of Peter Kearns, Amazon’s one of the former marketplace manager, this new step sounds promising but it fails to tackle with few of the main glitches regarding suspension problems.
The marketplace reveals to be both a boon and a bane for Amazon from the moment it welcomed many outside suppliers internationally, mainly from China. 3rd party sellers account for nearly 58% of goods traded on Amazon’s website, and outperform company’s retail model.
Germany’s antitrust bureau wrote in the contract that it has acknowledged the suspension issue as many manufacturers were complaining regarding the abrupt suspension and cancellations which led to loss of revenue. Although no necessary actions have been taken by United States’ regulators, however presidential candidates Senator Bernie Sanders and Senator Elizabeth Warren have openly appraised Amazon for its cavalier actions and an antitrust enquiry has been set by EU officials to look into the matter.