Amazon faces multiple charges! The reason for the poor order volume of sellers may be related to this

"Advertising and logistics are like eating people, they are so expensive."

“My daily sales (after deducting platform fees and taxes) are not enough to cover the advertising costs...”

"For a product, 5 orders were placed in the morning, and the advertising fee was more than 20 US dollars. When I checked again in the afternoon, the advertising fee had burned through 60 US dollars, but the number of orders remained at 5..."

We have to admit that the cost of doing business on Amazon is really too high now. Advertising fees, storage fees, surcharges, and storage utilization rates are all adjusted upwards. If sellers want to sell things on Amazon, they have to accept Amazon's policy changes. Most sellers dare not speak out.

Recently, a big thing happened in the United States. Amazon was officially sued! It was exposed for suppressing competition and raising prices!

The lawsuit accuses Amazon of abusing its market dominance by forcing third-party sellers to rely on Amazon's Marketplace platform.

The content stated that Amazon doubled the amount of junk ads to increase profits and deleted internal communications to hinder the latest details of a federal antitrust investigation.

Now NANA will briefly report on the content of the lawsuit against Amazon:

1. Favoring Amazon’s own products

FCT believes that Amazon will deliberately put its "favorite" products on the search page to gain more traffic and order support. However, third-party sellers, as "outsiders", are not treated equally and are even suppressed.

2. Implement anti-discounting measures to punish sellers and prevent other online retailers from offering lower prices than Amazon

This is a bit like a certain Jiaqi price monopoly, that is, keeping Amazon as the lowest price and limiting the prices of other retailers. Once a product is found to be selling at a lower price than Amazon, the product may be hidden.

3. Force sellers to obtain Prime eligibility

If Amazon sellers want their products to be eligible for Prime, they must use the expensive services provided by Amazon, so the costs for Amazon sellers are much higher than those for sellers on other platforms.

FCT believes that this is a compulsory practice and sellers are forced to use expensive services.

4. Defective ads and increased spam ads

Amazon has doubled the number of "junk ads" in recent years, and defective ads are appearing more frequently on users' search pages. There are more and more cases where searching for Zhang San and Li Si appears. In order to earn advertising fees, Amazon chooses to turn a blind eye to this situation.

Advertising revenue has accounted for the absolute majority of Amazon's revenue in recent years. Amazon charges expensive fees to third-party sellers, including business fees and monthly fees. These fees not only increase operating costs for sellers, but also increase prices for consumers.