Dozens of Amazon sellers have signed a petition asking the electronic commerce to reconsider its policies concerning its purchasing box, said the entrepreneur who created the petition.
The petition, which was written and disseminated by the electronic commerce entrepreneur, Brandon Fishman, said that the prices have forced many brands to consider increasing their prices, they are in a delicate situation concerning their Amazon products lists.
This is the purchase box, long of a stress source for Amazon sellers.
“Winning” The purchase box is essential because it means that your list is the default purchase option and has the “Add to basket” button on it, increasing the chances of beat the competing lists to a sale.
Amazon uses a complex algorithm to determine which products earn the purchase box. As part of this process, he compares the prices listed on Amazon to those of the same product in competitors, encouraging sellers to always have the lowest price on Amazon.
An example of what a purchase box looks like on a list of Amazon products. With the kind authorization of Amazon
Fishman said that fierce competition to have the lowest price on Amazon and, therefore, winning the purchase box means that sellers do not have as much control over their prices as they would like.
This is particularly relevant because companies seek to increase prices to resist the impact of prices. Since many brands also sell their products from large retailers, such as Walmart and Target, this may require more price changes in stores. Sellers cannot quickly increase their prices on Amazon without risking losing the purchase box, said Fishman.
“Amazon must immediately give marks their own price power,” said the petition.
Amazon representatives refused to comment on the petition, but underlined a 2020 blog article which explains how Amazon chooses the seller chosen for the purchasing box when several sellers sell the same product.
“We do not want to disappoint customers, so if we or our independent sellers do not have a good offer that we are confident to preserve customer confidence in our store, we will not offer an offer at all. We prefer that the customer will not buy this Amazon product rather than a bad shopping experience and confidence in Amazon,” he said.
“Of course, even when we choose not to present a particular offer, customers can always display all the unrelated offers available for this product.”
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Does not sell rather than sell at a loss
Fishman is the CEO of Vitacup, a brand of coffee and infused vitamin tea, and an Amazon marketing agency called Prime Team Agency. He told Bi that his customers had adopted a variety of approaches in response to prices.
“Most of the people I know literally remove the product and do not sell it because they cannot sell it at a loss,” he said. “People simply do not send to see what is going on here in the coming weeks.”
BI reported earlier this month than employees, suppliers and Amazon sellers rushed to solutions because they received little business advice concerning the best way to respond to Trump’s prices.
David Cassarino is director of Amazon Marketing at Digital Growth Firm National Positions. He said he signed the fishman petition because it would be in the best interest of his customers for Amazon to allow his sellers to increase prices without risking losing the purchasing box.
“Companies must react quickly to the prices, which have changed daily, and for the moment, they cannot rotate fairly quickly due to the suppression of purchase of boxes to increase prices,” said Cassarino.
The global commercial situation continues to evolve quickly. Trump said on Wednesday that he would arouse most of his planned prices and would reduce the reciprocal rates to 10% for 90 days, with the exception of those who have goods from China, which he reached 125%. This means that Amazon sellers still feel the heat of the prices – a scout survey of the 2024 jungle revealed that more than 70% of Amazon sellers get their products from China.
Amazon CEO Andy Jassy said in an interview on CNBC on Thursday morning that he expected the sellers should transmit the additional cost of customers.
“I understand why, I mean, according to the country in which you are, you do not have 50% additional margin with which you can play,” he said.
Bloomberg reported on Wednesday that Amazon had canceled orders for products made by sellers in China and several other Asian countries.
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