Business Shut Down

[BestBuyz]

Good day,

My Amazon business was recently shut down due to 3 refunds within a 30 day period and over 100 orders processed. I was selling software on Amazon's marketplace and earned approximately $5,000 during that period. Now, it's obviously apparent why Amazon took such a negative action towards my account. It only makes sense to "ban" the leading competitors in a specific area of business in order to increase profits. Unless of course, you're the primary beneficiary of the profits associated with the products sold.

Anyways, the question I have for the members of this forum is: would it be wise to create a stealth account? This means a new identity (family member), their bank account and credit card number, their phone number, their address and their computer. Also, would it be a good idea to add the bank account information, then delay the sale of products for (14) days? This would ensure I am able to cash out any time I prefer, without having to worry if my account will go under review before seeing the first nickel.

I would greatly appreciate any responses.

Thanks.

[jeffweico]

What were you selling? Windows 7 Ultimate? Rosetta Stone? Adobe Creative Suite?

That would explain the shutdown.

Maybe I am being too quick with an answer, but were you selling counterfeits?

Either way, using someone else's information is NEVER a good idea, even if your products are 100% legitimate. If anything goes wrong, you will have dragged that person into a bad situation that was not of their own making. We have seen lots of heartache over this type of thing.

The whole idea of stealth is to use an identity that does not actually exist.

On brand new accounts, if you sell over $750 in the first month, your acount will go into review. The amount may be a little more or a ittle less, but there is no way to do $5k in business on a new account without going through a review. ESPECIALLY if the items you are selling are considered high-risk.

Some software is high risk. Some is low risk. High risk software includes Microsoft products, Rosetta Stone, Adobe, Quickbooks, etc. Low risk software would be stuff like Family Tree Maker, Printmaster Pro, Hoyle's card games, etc.

Given the dollar amounts you mentioned, I'm guessing the software is high risk.

[ovidiu]

Refunds in the software category are not counted towards your performance. Are you sure you were shut down for refunds?

[cherrqell]

Originally Posted by jeffweico

What were you selling? Windows 7 Ultimate? Rosetta Stone? Adobe Creative Suite?

That would explain the shutdown.

Maybe I am being too quick with an answer, but were you selling counterfeits?

Given the dollar amounts you mentioned, I'm guessing the software is high risk.

A new account would never be approved to sell high risk software items. On a new accounts, never refund through the Amazon system. Send a check/mo, and just let them keep the software, or item. Perhaps one of those refunds reported you directly to amazon if your merchandise was questionable. This would shut down a new account immediately. I doubt Amazon would get rid of someone just to eliminate compitition. They still make money when you sell your merchandise. I have many accounts, and compete item for item with Amazon, with my selling price lower, and I never had a problem. I would look into your business model, and the inventory you are offering, and see if that may be the root of your problems.

[BestBuyz]

The software in which I was selling is not considered "high risk." The refunds were given based on our private discretion methods and Amazon closed the account anyways. This is monopoly at it's ugliest point....

[amazonian]

Originally Posted by BestBuyz

The software in which I was selling is not considered "high risk." The refunds were given based on our private discretion methods and Amazon closed the account anyways. This is monopoly at it's ugliest point....

Monopoly? This is Amazons site. You can go start your own site to compete with Amazon. Amazon won't stop you.

[BestBuyz]

Yes, A monopoly. Amazon negates future business propositions from new members because they want to corner the market. If amazon can make a bigger profit by banning a member, they will. If I'm selling a product 40% lower than what Amazon has it listed for, they are obviously losing profit. Do you honestly believe it's a coincidence people are banned on a daily basis with no explanation whatsoever? Absolutely not!

[jeffweico]

There are a number of larger retailers who no longer use Amazon as they are afraid Amazon would use their sales data to their own advantage. If memory serves, Buy.com and JC Penney were two of them. There were some other pretty big names as well.

My point is, if THESE GUYS feel threatened by Amazon, then maybe BestBuyz claims are not without merit.

I've seen posts elsewhere from some small sellers who claimed they put a new product on Amaon and started doing well, then Amazon suddenly started selling the same product.

Also, an apology to BestBuyz for my first post. I think the "Z" at the end of your user name led me to the conclusion that you were selling counterfeits - you know, like in Warez, Gamez, etc. Didn't mean to be so judgemental.

[unkown5454]

Originally Posted by jeffweico

There are a number of larger retailers who no longer use Amazon as they are afraid Amazon would use their sales data to their own advantage. If memory serves, Buy.com and JC Penney were two of them. There were some other pretty big names as well.

My point is, if THESE GUYS feel threatened by Amazon, then maybe BestBuyz claims are not without merit.

I've seen posts elsewhere from some small sellers who claimed they put a new product on Amaon and started doing well, then Amazon suddenly started selling the same product.

Also, an apology to BestBuyz for my first post. I think the "Z" at the end of your user name led me to the conclusion that you were selling counterfeits - you know, like in Warez, Gamez, etc. Didn't mean to be so judgemental.

I also believe the same. None of these guys are any more innocent than the other. Greed ultimately feeds the beasts and all else will suffer. Don't be so naive to all of this.

[chrisallen]

while reading the comments and replies i found some informational thoughts, thanks for this sharing.

[BestBuyz]

Originally Posted by jeffweico

There are a number of larger retailers who no longer use Amazon as they are afraid Amazon would use their sales data to their own advantage. If memory serves, Buy.com and JC Penney were two of them. There were some other pretty big names as well.

My point is, if THESE GUYS feel threatened by Amazon, then maybe BestBuyz claims are not without merit.

I've seen posts elsewhere from some small sellers who claimed they put a new product on Amaon and started doing well, then Amazon suddenly started selling the same product.

Also, an apology to BestBuyz for my first post. I think the "Z" at the end of your user name led me to the conclusion that you were selling counterfeits - you know, like in Warez, Gamez, etc. Didn't mean to be so judgemental.

No offense taken, and I greatly appreciate the input. I am merely making a hypothetical conclusion based on what I derived from my time on Amazon. On several occasions, I have witnessed members complaining about this same situation and I felt the best form of action to take was to post in the forums.

[amazonian]

Originally Posted by jeffweico

There are a number of larger retailers who no longer use Amazon as they are afraid Amazon would use their sales data to their own advantage. If memory serves, Buy.com and JC Penney were two of them. There were some other pretty big names as well.

My point is, if THESE GUYS feel threatened by Amazon, then maybe BestBuyz claims are not without merit.

I've seen posts elsewhere from some small sellers who claimed they put a new product on Amaon and started doing well, then Amazon suddenly started selling the same product.

Also, an apology to BestBuyz for my first post. I think the "Z" at the end of your user name led me to the conclusion that you were selling counterfeits - you know, like in Warez, Gamez, etc. Didn't mean to be so judgemental.

I have read this on here and other forums as well. I do believe that Amazon probably does this. Is it illegal? I'm not so sure. I also don't believe it fits the definition of a monopoly. Amazon has every right to restrict a third party from selling any item they want.

[newtools]

I think the best thing to do is to diversify just like you would investments. Seek other platforms and spread your sales out. while the Ebay/Aamaz maybe a good game at times it is not the only game in town. Do not get lazy and start looking around for other solutions. I think that we all get a little bit lazy when things are going well and then are lost when we hit a road block. Do not be afraid to peak around the corner and see what else is out there.

[BestBuyz]

Originally Posted by newtools

I think the best thing to do is to diversify just like you would investments. Seek other platforms and spread your sales out. while the Ebay/Aamaz maybe a good game at times it is not the only game in town. Do not get lazy and start looking around for other solutions. I think that we all get a little bit lazy when things are going well and then are lost when we hit a road block. Do not be afraid to peak around the corner and see what else is out there.

What do you have in mind? Software would be the category of interest.

[BestBuyz]

Originally Posted by amazonian

I have read this on here and other forums as well. I do believe that Amazon probably does this. Is it illegal? I'm not so sure. I also don't believe it fits the definition of a monopoly. Amazon has every right to restrict a third party from selling any item they want.

Doesn't fit the description of a "monopoly?" Let's review the definition...

Monopoly: The exclusive possession or control of the supply or trade in a commodity or service.

How does this apply to my situation? Amazon bans members whom are in competition with their business. Simply put, Amazon wants to "control" or "dictate" 100% of the supply. How can they do this? Sell their products for 10% cheaper than every other business provider listing on Amazon. If the businesses listing price decreases and competes with Amazon's, a ban would be the most logical solution to corner the market.

[jeffweico]

Originally Posted by BestBuyz

Doesn't fit the description of a "monopoly?" Let's review the definition...

Monopoly: The exclusive possession or control of the supply or trade in a commodity or service.

How does this apply to my situation? Amazon bans members whom are in competition with their business. Simply put, Amazon wants to "control" or "dictate" 100% of the supply. How can they do this? Sell their products for 10% cheaper than every other business provider listing on Amazon. If the businesses listing price decreases and competes with Amazon's, a ban would be the most logical solution to corner the market.

Yes, but that is not a monopoly. A monoply is when there are NO other sellers of a good or service that consumers can access. You have to remember that the Anti-Trust laws were meant to protect consumers, NOT sellers.

If Amazon was the ONLY place on earth that this could be listed, and there were no similar products available from any other source, then you might have something.

Sort of like this... Amazon is the only seller of the Kindle. But that does not make it a monopoly. There are iPads, the Nook, and other e-readers available to consumers.

Is the software in question available on eBay? Any other internet sites? Local stores? Flea Markets?

Amazon couldn'r even be considered an online monoploy for individual sellers. They would just say eBay is around. And so is eCrater, ebid, ioffer, half, etc.

And things always change. At one time, Yahoo was the dominant search provider on the web. Then Google came out and dominated the market. But that is also not a monopoly.

Blockbuster put a lot of mom-and-pop video stores out of business, but that also was not a monopoly. People liked the larger stores, well lit, looking nice and having NO adult section to shield their kids from. And they had it good for a long time. Now, Netflix and Redbox are eating their lunch.

The fact is, Amazon does not even have to allow ANY third party sellers on it's website. I believe the do so because the 8% - 15% they get for the listing is worthwhile for them. In lot of cases, that would even be better than the profit margin a legitimate retailer could expect to make. An I'm sure that having all those diverse products has helped to make them THE major retail destination on the web.

[Road-Kill]

I'm no fan of Amazon's tactics, but they aren't breaking any anti-trust laws that I know of.

They were a B&M chain and couldn't compete with the other book chains, so they closed all their stores and decided to sell online. After they developed a online platform for sales, the decided to allows competitors to sell on their own web site. If anything they are helping small sellers compete with major chains.

What I don't like about them, is that they beat up on sellers too much. And the only real way to deal with that is stealth tactics. Beating up on sellers in the name of consumer protection, seems to be a great way to win consumer confidence, but obviously sucks if you are a seller.

I wouldn't open any new accounts until you have exhausted all chances of getting your account reinstated. Getting caught opening a second account, will be the start of the cat and mouse game of seeing how many lifetime bans you will rack up. You may already have the lifetime ban, but they won't give you the good news until they make sure you have shipped all your orders and your funds are tied up.

[BestBuyz]

Originally Posted by jeffweico

Yes, but that is not a monopoly. A monoply is when there are NO other sellers of a good or service that consumers can access. You have to remember that the Anti-Trust laws were meant to protect consumers, NOT sellers.

If Amazon was the ONLY place on earth that this could be listed, and there were no similar products available from any other source, then you might have something.

Sort of like this... Amazon is the only seller of the Kindle. But that does not make it a monopoly. There are iPads, the Nook, and other e-readers available to consumers.

Is the software in question available on eBay? Any other internet sites? Local stores? Flea Markets?

Amazon couldn'r even be considered an online monoploy for individual sellers. They would just say eBay is around. And so is eCrater, ebid, ioffer, half, etc.

And things always change. At one time, Yahoo was the dominant search provider on the web. Then Google came out and dominated the market. But that is also not a monopoly.

Blockbuster put a lot of mom-and-pop video stores out of business, but that also was not a monopoly. People liked the larger stores, well lit, looking nice and having NO adult section to shield their kids from. And they had it good for a long time. Now, Netflix and Redbox are eating their lunch.

The fact is, Amazon does not even have to allow ANY third party sellers on it's website. I believe the do so because the 8% - 15% they get for the listing is worthwhile for them. In lot of cases, that would even be better than the profit margin a legitimate retailer could expect to make. An I'm sure that having all those diverse products has helped to make them THE major retail destination on the web.

This is most definitely a monopoly. Although there are other sellers providing the same products within Amazon's boundaries, the seller's prices are almost always higher than Amazon's. This, in turn, gives Amazon total control of the products return.

When you speak of eBay and eCrater competing with Amazon, you are referring to the overall business aspect. I am referring to the products sold within Amazon's limits. If I start an online distributing business and allow sellers to utilize my marketplace, I am going to charge a commission fee for any products sold. What am I doing? Nothing more than creating my very own monopoly in order to reap the benefits of all products sold under my nose on the site.

Also, to address your statement made in regards to Amazon NOT having to allow third-party sellers on their site. Amazon invests money into purchasing products for resell. They are NOT manufacturing these products (software, electronics, books.), but rather redistributing them for companies. What does this mean? It means Amazon doesn't make 100% profit on a sale. When they charge sellers commission fee's, they do.


Why did it take Amazon 5 years to profit from it's initial founding? Investing, investing, investing!

[amazonian]

Originally Posted by BestBuyz

Doesn't fit the description of a "monopoly?" Let's review the definition...

Monopoly: The exclusive possession or control of the supply or trade in a commodity or service.

How does this apply to my situation? Amazon bans members whom are in competition with their business. Simply put, Amazon wants to "control" or "dictate" 100% of the supply. How can they do this? Sell their products for 10% cheaper than every other business provider listing on Amazon. If the businesses listing price decreases and competes with Amazon's, a ban would be the most logical solution to corner the market.

I think you are confused. Amazon is not the only place you can sell items. You are free to sell on other venues or create your own venue.

If I go stand out in front of Walmart and try to sell an item they are going to kick me out. Would you call that a monopoly too?

[amazonian]

Originally Posted by jeffweico

The fact is, Amazon does not even have to allow ANY third party sellers on it's website. I believe the do so because the 8% - 15% they get for the listing is worthwhile for them. In lot of cases, that would even be better than the profit margin a legitimate retailer could expect to make. An I'm sure that having all those diverse products has helped to make them THE major retail destination on the web.

I read an article once many years ago that explained why Amazon made the decision to allow third party sellers. They got to a point where they sold just about "everything." It became a logistical nightmare to carry that much product and have it delivered promptly. Allowing third party sellers on the site still allowed them to carry "everything" without having to deal with the inventory.

[Rampury]

Ok I was selling books on ama zon for a long time till one day I came across china software as mentioned by other VIP members. So I was doing good with books like about $1000 to $1500 per month. Once greed took over and I start to sell software from china and next thing you know that I was making about 4Gs to 5Gs per month. It was very scary but I wish I could take it all back and just stuck with books only because amazon suspended my account as I was selling $1000 software for $250. I mean common.

They were ⊗⊗⊗⊗ and I know it as everyone else to. I sold remaining software via craigs list, news paper, and other diff places. Now I am sticking with books only on other sites and doing well like I was on ama zon.

Ama zon can do what ever they want to as they own the site, They and Ebay are the reason that we make money so it is not monopoly. Its their business and they have right to shut anyone down for the best interest of their customer. Ama zon buys all the software they sell at distributor prices not from china for $15 per and sell it for $600. I have a cousin work for Ama zon. They buy their software direct from Adobe Microsoft, etc.

[JRYAN34]

Originally Posted by cherrqell

A new account would never be approved to sell high risk software items. On a new accounts, never refund through the Amazon system. Send a check/mo, and just let them keep the software, or item. Perhaps one of those refunds reported you directly to amazon if your merchandise was questionable. This would shut down a new account immediately. I doubt Amazon would get rid of someone just to eliminate compitition. They still make money when you sell your merchandise. I have many accounts, and compete item for item with Amazon, with my selling price lower, and I never had a problem. I would look into your business model, and the inventory you are offering, and see if that may be the root of your problems.

well i am definitely going to buy something from you then. so i will buy it. get a money order refund, and then file an a-z......dont be a dumb ass