sold by amazon program

Amazon is at it yet again with its program ‘Sold by Amazon’ shutting down following state investigation.

This investigation was carried out by Washington state’s attorney general who found this program:

  • Anticompetitive 
  • Violated antitrust laws
  • Unlawful price fixing
  • Restrained competition

According to court documents filed Wednesday, 26th 2022, Amazon was understood to have broken all the above antitrust laws.

If you did not know this program, here’s a quick breakdown.

What is ‘Sold by Amazon’ Program?

sold by amazon

‘Sold by Amazon’ program is an arrangement that basically enabled Amazon to act as the retailer and purchase products from suppliers to fill customer orders, ensuring low prices for consumers.

This arrangement worked relatively well for 2 years and Amazon suspended it for reasons unrelated to the investigation.

The program worked from 2018 to 2020, and congress is just now showing up to a war that’s been over for ages.

A spokesperson for Amazon said the company believes the program was legal and good for consumers. 

However, Washington Attorney General Bob Ferguson’s investigation concluded that it boosted Amazon’s sales in a way that it didn’t have to compete with third-party sellers.

“Consumers lose when corporate giants like Amazon fix prices to increase their profits,” Ferguson said Wednesday.

Upon officially shutting down this program, Amazon had to pay out $2.25 million to the attorney general’s office and also provide annual updates on its compliance with antitrust laws.

These funds will go toward antitrust enforcement. 

Because this investigation claimed Amazon to be maximizing its own profits via a program that sets a minimum price for certain third-party products, then

What Does This Mean for Sellers?

If you sell on Amazon, you know they mostly care about profits.

And rightly so. Who doesn’t?

Moreover, when your listings have a high conversion rate, Amazon shows you more love with organic ranking

They indeed do love a listing that’s making money because it increases their revenue the same way it does for you.

So what does this news mean for Amazon sellers moving forward?

Well, if you are enrolled in this program, your sales are obviously going to plummet ridiculously.

And with fewer sales comes a dip in your conversion rate as well as ranking.

Amazon in 2020 generated over $80.5 billion in third-party seller services.

All this revenue is going down the drain.

And you do not want to lose your position and authority because of this.

That is why we want to help you come out of this without having to redo everything you worked so hard to achieve.

Book a call with me today (it’s FREE) and let us deep-dive, into the future success of your business

See you on the inside

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