Seller Beware: How to Make or Lose Money Selling on Amazon

Sun, Mar 8, 2009, by Scott Stambler

Money Making

Amazon: The dark side. “If I transfer your call to Jeff Bezo’s office I will get fired,” said the Amazon Corporate Office Receptionist.

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Selling on Amazon is easy. You really can make money. I did for about two and a half weeks. This link should work to open a seller account. If it doesn’t, go to Amazon and click YOUR ACCOUNT, then find the links on the right lower middle of the page – Your Other Accounts. There you can sign up to sell on Amazon. If you have a large inventory like me you might be making a trip to the post office everyday. Your business may grow so quickly that an internet postage solution will work better than making post office runs. There is, of course, a ‘but’ to this – Seller Beware! Watch out for the team that monitors your activities and, like a secret, unapproachable oligarchy, THEY enforce the rules. They are called the Seller-Performance team.

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Warning number one – be very, very careful to follow their terms of service. Here’s what happened to me. I started selling CDs from a collection I have had for many years. Inside of two weeks I was making good money – and so was Amazon to the tune of roughly 13%.  In my guarantee I told buyers that I would refund with no questions asked.

In the first week, one of my very rare CD’s was purchased by a 70’s rock star. Oddly I knew her through friends and decided to REFUND her money and send her the CD for free. I did this because the CD was a rare recording that her late husband had written.

Without warning, a few days later my account was temporarily frozen because I had given out too many refunds. I must have hit some software threshold. (See Seller Performance Links at end of article.) Warning number two – be careful when entering your inventory! For some reason I had four duplicate listings. Inside of the same 3 days that I gave the rare CD away, I had two more duplicate orders for non existent inventory. I PROMPTLY fully refunded those orders with apology emails to the buyers. One of those buyers gave me positive feedback for great service.

Amazon’s software doesn’t really care, they shut me down saying I had given out too many refunds in too short a period of time. Not only that, but their auto email suggested that I had refunded without even waiting for the buyer to respond to the transaction. (Don’t give out speedy refunds. Bad for your metrics.)

My frustration stems from being too honest and too caring for my buyers to the point where Amazon’s Seller-Performance Team had automatically shut me down.

To be fair – the Amazon seller HELP team is fantastic. You can reach them by phone and they will walk you through the various issues you might be having. They will also advise you if you are making any TOS violations so that you can quickly correct them. The only problem is they have no contact with the dreaded Seller-Performance Team. No matter what is discussed, or corrected on your seller account, the people who work in Seller Help can’t contact or email Seller-Performance.

The last straw that permanently shut me down was this: A buyer sent me an email that his CD had scuff marks and wouldn’t play. I am 90% sure the CD i sent him was in MINT condition. I offered him a refund without wanting the ORIGINAL CDs returned (it was a two CD set). I also offered him FREE OF CHARGE a burned copy of the tracks that didn’t play.

Well, having been shut down for refunds a few days earlier I sent an email to Seller-Performance. They mis-read my email to think I was selling copied media. They shut me down permanently. Thus I warn you, if you sell on Amazon don’t try to make things right with your customers, that may appear as you are violating the TOS – it will only get you into trouble.

The torturous part: You cannot speak with Seller-Performance. You can only email them. The three emails I received were ALWAYS cryptic, except for the part where they stated my account was permanently shut down. (A copy of their email is at the end of this article)

This a hugely ridiculous exaggeration – I felt like an innocent prisoner at Guantánamo Bay. Certainly some of the detainees must be innocent. Yes, that’s one hell of a stretch in comparison, but I couldn’t think of a proper analogy. Getting shut down for unspecified reasons is difficult and frustrating -  it builds animosity when you have tried so hard to reflect well on yourself, your customers and the Amazon way – only to be wrongly accused and punished.

The end result being that Seller Performance, in my opinion, operates without trials, without evidence, and without thoroughly examining their cases. They just shut you down. Period. In my case, I tried too hard. My seller account was just under three weeks old.

As a final note I called Amazon Corporate. I dialed the number and asked for Jeff Bezos. I did this NOT to get my account re-opened but to let them know how unfair the Seller-Performance team had judged me. Many years ago I couldn’t get DSL hoked up. I called the CEO of PAC Bell (Ed Whitacre at the time) and an assistant answered. I got my DSL inside of two weeks. At Amazon I got a receptionist at Amazon Corporate. I told him the story. He said, “If I transfer your call to Jeff Bezo’s office I will get fired.” Yes, that’s what he said. He offered to transfer me to another voice mail instead. Well, that transfer was some Amazon department that said – “You can leave a voice mail, we are very interested in your call, but due to the high volume of voice mails we cannot guarantee we will return your call,” I hung up.

So, here I am writing my frustrations via Triond. Good luck selling on Amazon. I really mean that. Just be very careful. Perhaps my story will keep you from committing the same sins as I did.

Here was my feedback – as could have been viewed publicly on Amazon.

5 out of 5:  “item arrived quickly and in excellent condition as described, quite satisfied..”
Date: 3/5/2009     Rated by Buyer: Elle M.

5 out of 5: “Everyhting Perfect… Beautiful item… Thank you so much ”
Date: 3/5/2009     Rated by Buyer: danielximo

5 out of 5: “Great seller! Thanks so much!”
Date: 3/5/2009     Rated by Buyer: Marianna L.

5 out of 5: “Item arrived sooner than I thought possible, in perfect condition. Great seller!”
Date: 3/5/2009     Rated by Buyer: millionrainbows

5 out of 5:  “Great service. Thanks.”
Date: 3/4/2009     Rated by Buyer: smlazur

5 out of 5:  “Warp-speed delivery, and CD arrived with mint playing surface as promised. Thank you so much for a high-integrity transaction!”
Date: 3/2/2009     Rated by Buyer: imnhvn

5 out of 5:  “Great Seller, fast delivery, and wonderful service!!! No problems whatsoever!!!”
Date: 2/28/2009     Rated by Buyer: Tim K.

5 out of 5:  “CD in perfect condition, with its original jewel case and inserts, safely packaged, swiftly dispatched, and with cheerful helpful mail confirmation. What more could one possibly ask?”
Date: 2/28/2009     Rated by Buyer: xpb

5 out of 5: “Seller Rocks!! Order came immediately. Would love doing business with seller again.”
Date: 2/28/2009     Rated by Buyer: bgsm

* * * * * * * * * * * * * * * * * * * * * * * * * *

Hello from Amazon.com.

We apologize that you feel singled out by our actions, but want to assure you that is not our intention. Be assured that our policies apply to all sellers. After a review of your account by an account specialist, we have decided your account will remain blocked.  We regret we are unable to provide further information on this situation. Further correspondence regarding the closure of your selling account will not be answered. The closure of this account is a permanent action. Any subsequent accounts that are opened will be closed as well.

* * * * * * * * * * * * * * * * * * * * * * * * * *

Some Helpful Links and Advice Below.

If you are so inclined to open a seller account here are two Seller-Performance Pages That You should READ. And HERE is the second. Get familiar with those pages. Of course, follow the common sense rules of rating your inventory properly. There are CD collectors who want to know if the CD Artwork has indentations. Make sure you describe your products with extreme accuracy. Get your orders filled each day if possible. Email your customers and let them know it shipped. For further research Google “Amazon Seller Performance Issues”

As a post-script. If you have a large CD collection I highly recommend Delicious Library. It scans your collection and shows you the retail price on Amazon. It is Mac only. Good Luck.

For me, I’m done with Amazon. No more selling, no more buying.  I was good at both.

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7 Comments For This Post

  1. Matthew Says:

    I am amazed that they will contact you shutting down your source of income even though you have great feedback rating — and there’s no recourse for you whatsoever.

    My Mom and sister are having the same issue. They both sell on Amazon separately. The problem is that they occasionally check on their accounts when at my sister’s house. So now Amazon thinks that my sister has two accounts — even though all of the information on the accounts are completely different — and there would be zero benefit for my sister to do this.

    The template responses are very frustrating. You type out detailed information and get a template response, followed with “shut down one of the accounts or both will be closed.” WTF? Unbelievable.

  2. rtu Says:

    i has the same exact story,
    its about time to submit a class action lawsuit

  3. Mariam Says:

    I had the same problem with amazon.Both Amazon and Buy.com are acting as if they rule this world.I am ready to sue them.

  4. Ryan Says:

    Amazon F*CK with my seller account . They close my account saying that the account is associated with “previously close account”. They are just a bunch of MOTHERF*CKER that doesn’t know a SH*T about what they were doing. I have never had a “Close” account. How nonsense can they be? AMAZON F*CKS AND SUCKS.

  5. Black B. Says:

    Amazon’s Seller Performance Team is truly meant to analyze how many sellers join the site and how many they can shut down so that they can gain interest while holding your funds. 100% of the time, if Amazon says the are currently reviewing your account, but encouraging you keep on selling so that they can keep taking their fees and holding your money, its because is a overly corporate centric and do not know anything about customer satisfaction. Hence a team to find excuses with lack of proof to close down seller accounts and send template emails with no effort to allow cases to be resolved, hence why its a PERMANENT action when they closed their account. Amazon needs to be SUED AGAIN for greater damages than what they did with the Kindle violation. Amazon are hypocrites that do not reward their sellers, but take their money and leave you frustrated. STAY AWAY FROM SELLING ON AMAZON. If your successful in selling on their, then they will be successful in taking hold of your money…wait and see, and so far, no one is doing anything about this…GREAT COMPANY JEFF.

  6. Rene Says:

    if there is anyone here ready for a collective lawsuit, please reply, these company needs to be teached some manners, they have no idea how much harm they do to families and individuals shutting their accounts based on NONSENSE policies and not giving you a chance to prove them wrong. e-mail me at lediscotheque@yahoo.com. We are put, these company has no idea of how much money we invested. specially in this crisis, shutting down income that is going to be sitting there..

  7. Boycott Amazon Says:

    Amazon has become very powerful over the years.

    Remember that if you are a seller on Amazon, Amazon is also your competitor too! If you have a product that sells very well, Amazon knows exactly your total sales, when they sold, and sales rank. These are not figures you want to give a competitor but Amazon has them. Now Amazon can purchase that product, sell it themselves, and undercut your price. Soon you won’t be able to sell it anymore for a decent margin. It’s a beautiful thing for Amazon to have these sellers sell products that Amazon collects all this competitive information from for free! Why do you think Amazon’s stock is going through the roof!

    eBay does not compete with its sellers. Much better arrangement for sellers and eBay does take better care of their sellers than Amazon. Amazon only wants sellers on their site in order for Amazon to obtain competitive information, sales, sale prices, and trends. Other than that they really do want anything to do with their sellers. Case in point – The Seller Performance Team.

    In time sellers will wise up and Amazon will gradually dry up.

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