Daily Archives: June 5, 2010

Reasons why I no longer sell on Amazon 1

Today I requested closure of our Amazon.com seller account after four months. I have briefly listed below the main reasons for the cancellation. You can read more detail of our initial problems with amazon holding our money and not paying us.

    Selling on Amazon was too competitive for our type of product, which means little to no profit. Amazon’s 15% cut on sales plus $40 per month pro merchant account fees took most of the profit.
    Too much time to manage orders. I wrote programming to allow order imports based on an “order report” from amazon so speed things up. However, entering tracking numbers and constantly requesting feedback to keep our account open was tedious time consuming.
    On Amazon, buyer wins all disputes no questions asked as Amazon takes your money immediately. If the buyer supplies you with an incorrect shipping address, it’s on you to pay the UPS reroute fees and/or reship the product.
    Zero Customer Service. You’ll never talk to a real person and will only get prefabbed customer support responses.
    Amazon works hard at keeping the customers purchasing though their site. The only way we could earn any money from these customers is if they purchased directly from our online website for follow up orders rather than use Amazon and that was not happening. Amazon will not provide you with the customer’s email address and they’ll suspend your account if you include any hyperlinks or your store name in any communications to them. Smart on Amazon’s part, but keeps sellers from making any money.
    The last straw is when Amazon again started holding our money. They’re holding $8,000 of our money as “reserve” and instead paying us only a few hundred dollars of our money ever other week. They are holding it for 90 days! That’s money I’m paying interest on while they’re out spending it! I cannot continue to finance this business relationship where we’re making little to no profit in hopes that we’d increase customer orders directly to our website, which unfortunately isn’t happening.

Good bye Amazon!