In recent years, Amazon has continued to grow, but some big brands including Apple have been complaining that products purchased through their malls are fake or unauthorized. At present, the agreement between Amazon and Apple has been settled, and the outcome of independent market suppliers has become clearer.
Foreign media reported that Apple products on Amazon will be blocked on January 4, 2019. This change forced a group of small and medium sellers to force them to switch to rival eBay.
Amazon sellers with an annual sales of $300,000 are forced to retreat
About five years ago, Page Weil needed extra cash to pay for his wife’s tuition and surgery costs. In order to make money, he became an independent seller on the Amazon platform.
Weil began selling second-hand electronics on the site, selling used and refurbished Apple products, including discontinued keyboards and iMac desktops. Fortunately, these products are selling well. In the past year, he has sold about $300,000 in sales of Apple products on Amazon. The net profit after tax is about $40,000.
“This is really a good thing for my family. This business helped me pay my wife’s tuition,” said the 35-year-old consulting engineer from Colorado. But now Weil will see the depletion of this business, and there are many sellers like him.
This month, Amazon and Apple reached an agreement to allow them to directly sell more Apple’s new devices, including iPhone XS, iPhone XR and iPad Pro. New stocks will arrive in the next few weeks. Any unauthorized merchant will ban Apple products from January 4, 2019.
Weil said: “I feel that our business has not been treated fairly, but we can’t do anything, it’s really frustrating!”
The risk that the seller is at any time
Foreign media commented that Weil’s situation shows that independent sellers often face risks when building businesses in Amazon. On Amazon, transactions made by independent sellers can change their position. This also highlights that for many years Amazon has consistently advertised itself as a friend and partner of small businesses on its website, but has taken actions that contradict this positive image.
The deal with Apple also shows that Amazon is working hard to make its website more popular with big brands. Last year, the company signed a similar agreement with Nike that it would be harder to sell if small businesses did not directly collaborate with the brands they listed. At the same time, Amazon needs to continue to find ways to support its 2 million independent sellers worldwide, many of which are small sellers like Weil. Currently, more than half of Amazon’s sales come from third-party sellers.
Forrester analyst Sucharita Kodali said that small sellers working with Amazon are always at risk because the company is bigger, often competing with independent businesses on its website, and it has the most popular product data from sellers.
When asked which sellers would lose in dealing with Apple, a spokesperson for Amazon said: “Sellers are extremely important to Amazon and customers, and we are now informing them so they can do this change. ready.”
Although Amazon and Apple did not comment on the timing of the agreement, but now before the key holiday shopping season, the two companies will hope that the agreement will help boost their sales.
Injured seller intends to move to eBay
Weil is far from being the only affected seller. Apple’s deal is “an attack on a third-party dealer.” Electronic refurbishment company John Bumstead told Motherboard that this change could affect hundreds or even thousands of small repair companies.
Weil said that the potential Apple trading threat is always in his mind, but after the incident, he hopes to get more support or guidance from Amazon, but it does not seem to be. In the past two years, he has sold $500,000 in merchandise through the site and has paid $80,000 in commissions over the past three years. Throughout the process, he maintained a track record of outstanding sellers.
Currently, he still owns goods worth about $50,000 in Amazon’s warehouse. By January 4th, 19th, Amazon will remove these items and send them back to him at their own price. Now he only sold about 10% of the product, so he plans to go to eBay to find a way out.
An eBay spokesperson said they have heard from several Apple sellers and plan to provide support to encourage them to bring more business to eBay.