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Amazon has made an update to its suspension policy and terms of service. It was done to address the problems and to overcome the complaints of third-party sellers effectively.
The Seattle-based technology company–Amazon–reached a settlement with German authorities of antitrust regarding its marketplace policies. The company’s officials announced that a thirty days’ notice will now be given to sellers before their suspension. Also, sellers will be provided some particular reasons for supposed legal infringements by them.
According to the announced agreement by the Germany Federal Cartel Office, before this modification in terms of service, Amazon had the legerity to terminate the sellers’ accounts at any time without giving any notice or justification.
Marketplace experts and sellers who’re familiar with the progressive royalist approach of Amazon to termination have a concern that the changes will take effect on the 16th of Aug world widely. Additionally, changes are not looking to go far enough to guard brokers against having their business instantly interrupted or even ruined without alternative.
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Peter Kearns, a former marketplace manager of Amazon and now working with 180Commerce, said in an interview that it’s a positive step announced by the technology company. However, the modifications and changes failed to report some of the real issues across the problems of suspensions.
The marketplace, a curse and a fortune for Amazon since the firm tossed starting their service to multiple outside sellers globally, more particularly from China, has now become a milestone. The third-party dealers now account for over fifty-eight percent of products sold on Amazon. This percentage was remarkably astonishing, from thirty-one percent ten years ago.
Amazon’s services to third-party dealers have provided big margins than a retail model of the company. The reason behind it is that sellers pay for nearly all types of services, including storage, advertising, and shipping and keep Amazon to spend heavily on inventory.
Jeff Bezos – CEO of Amazon – expresses in his yearly shareholder letter that “the outdoor sellers are kicking their first-part butt.” Meanwhile, with a masses of new sellers sourcing items for producers, forgeries have demolished the marketplace, leading to a swarm of breach items.
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The antitrust office of Germany wrote that it is looking the suspension issue primarily because various sellers criticized the unexpected and unsubstantiated cancellations, leading to turnover loss. Regulators have not taken a particular action yet. However presidential candidates including Elizabeth Warren and Sen have highlighted the point quite stressfully.
