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Amazon have destroyed my business and put two people out of work

Discussion in 'eBay, Amazon & Online Marketplaces' started by ukdirectchris, Oct 19, 2012.

  1. ukdirectchris

    ukdirectchris

    Joined:
    Sep 20, 2012
    Messages:
    42
    I mentioned this within another thread but I feel it needs its own to at least warn other people of what can happen.

    Our company imports various products from overseas, mainly phone accessories and we sell them online via eBay and Amazon. We are a genuine UK Limited company and provide a very good living for me and my partner.

    Our Amazon market place turnover is 10 times the size of our eBay. Over night they have pulled the rug from under our feet.

    We came into the office on 16th Oct to find an email from Amazon seller performance telling us that they have suspended our account as they believe it is linked with another Amazon account that has been banned, at the time I wasn’t very worried about this since we have only ever had the one account with Amazon and our seller metrics are all good, we have 100% positive feedback from customers our average email response time is just under 5 hours and we have never had an A-to-Z claim against us.

    I contacted Amazon with all the information that they requested and waited for our orders to start flooding in again. Then yesterday (18th Oct) I got the shock of my life when Amazon responded to our information with an email stating they have reviewed our account and have applied a permanent suspension and any new accounts we attempt to open will be closed straight away, all funds we have in our account will be frozen and released back to us after 90 days.

    As you can imagine I instantly picked up the phone to Amazon, I was told the team who deal with this matter can only be contacted by email and their decision is final. I tried to explain our situation as a business but Amazons response was that they can choose who they want to do business with under the terms and conditions we agreed to.

    I’m now left with pretty much all my cash flow tied up with Amazon for the next three months, a bespoke integrated IT system that is of no use, two years left on a franking machine contract, thousands of pounds worth of stock which was order specifically for the Amazon market place and absolutely no way of ever trading on Amazon ever again!!!

    I am absolutely gutted about how Amazon have handled this matter, they have closed our company down overnight and we haven’t put a single foot wrong.

    Amazon Sellers be warned!!!!
    domishop likes this.
  2. Ben Dame

    Ben Dame

    Joined:
    Sep 24, 2012
    Messages:
    120
    Sorry to hear that mate! Suppose it is a case of never put all your eggs in one basket :(
  3. Dean

    Dean

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    May 22, 2008
    Messages:
    9,441
    This does seem to happen occasionally and I'm pretty sure has been mentioned on here before. It might be worth you writing (the old fashioned way) and detail everything you can. I'm fairly certain someone on here got their account re-opened after writing although I can't remember why they were suspended. I certainly wouldn't just roll over if your living depends on it.
  4. steveshaw

    steveshaw

    Joined:
    Aug 13, 2010
    Messages:
    603
    Sorry to hear, I feel for anyone trading eBay, Amazon. 18 months ago PayPal held £3,300 for 6 months from me.
  5. WDMR

    WDMR

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    Aug 13, 2011
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    372
    Ouch =\
  6. ukdirectchris

    ukdirectchris

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    Sep 20, 2012
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    It was only last week that we sat down and said that all our eggs were in one basket and we should look to spread the risk :)
  7. ukdirectchris

    ukdirectchris

    Joined:
    Sep 20, 2012
    Messages:
    42
    I will be writing into them but from the numerous emails conversations Amazons position seems to be they are a business and can choose who they want to do business with.

    The frustrating thing is our seller performance has been good (Green ticks) from day one, and when you search round the internet their are sellers who's performance isn't that good and Amazon give them a second chance to improve it
  8. Gary

    Gary

    Joined:
    Aug 22, 2009
    Messages:
    16,354
    It's sickening to hear stories like this it really is and a very harsh lesson to all so thanks for sharing and warning people.

    Regarding your own Amazon account, is there anybody that you can trust enough to maybe open an account on your behalf?

    Or if you have all that stock to shift, then maybe even open an advertising account on here to at leat try to get your money back and a little profit, or even dropship (if there's enough margin).

    All is not necessarily lost although it may seem it right now, is there anything that you can think to do outside the box (a couple of suggestions above), your own website now would take a while to build and get estblished before you even begin to see near that turnover though unfortunately but it's not too late to start one for looking at the longer term solution as opposed to the current problem.

    I sincerely do wish you all the best!

    Gary
    steveshaw likes this.
  9. MSFB

    MSFB

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    Dec 13, 2010
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    2,248
    Don't give up, call and email every day. Use the story you posted here to emphasise the personal cost to you. Eventually you will find someone who cares and may help. If you've not done anything wrong I'm sure you can get it overturned.
  10. ukdirectchris

    ukdirectchris

    Joined:
    Sep 20, 2012
    Messages:
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    Possibly but we are a limited company and using a 'friends' account isn't really a long term option, We were turning over around £35,000 per month through amazon (Until Tuesday)


    We might have to shift our remaining stock for whatever we can get but that will only be if we have to wind things up. the margin for dropshiping isn't really enough for us. the only reason our business model works is we import direct from the factory and sell straight to the end user.

    We have been investing heavily into our site and it does produce sales but not enough to support two full time jobs, our main issue is the market we are in is extremely competitive our unique edge was no middle man which for selling on amazon is ideal.

    We are brain storming as we speak looking for other routes to market whilst desperately trying to speak to someone who cares at Amazon
  11. Gary

    Gary

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    I see your anguish and no, that sort of turnover cannot be done on a friends account, hopefully you can get somewhere with Amazon but from wht I've read they can be very stubborn in such cases unfortunately but fully understandable to keep trying (and it can't really hurt), again, all the best!
  12. lordan

    lordan

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    You should consider amazon ghost. It could get you out of this fix even to off load your stock which you say is tailored for amazon.
  13. Dean

    Dean

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    Doesn't that rely on submitting fraudulent information and hence illegal?!
  14. lordan

    lordan

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    It's no more illegal than what amazon have done by wiping out a legitimate trader for know good reason. There is nothing illegal with the ghost, just clever tactics to overcome situations like the op is in.
    tlogic likes this.
  15. ukdirectchris

    ukdirectchris

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    I understand we could get back on with Amazon ghost but I don't feel comfortable using false information, also it would make our accounts a nightmare operating another business bank account and we would need to rent a new address for returns
  16. rayloveday

    rayloveday

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    Don't waste your time emailing and phoning. Go straight to the top. Write to the top man - it's the only way you'll get anything done.
    Dean likes this.
  17. Gary

    Gary

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    What Amazon have done isn't illegal, it's out of order but not illegal, it is their business and it is in their terms.

    Plus, isn't that where you submit a fake name and address to get a bank account, etc. then use those to register? as that doesn't sound very legal to me.
    Dean likes this.
  18. ukdirectchris

    ukdirectchris

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    I've tried to google looking for a real person to complain to, does anyone have any contact details?
  19. shopafrolix

    shopafrolix Banned Member

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    you need to 'go into partnership. with another Amazon trader.

    Doesn't this sound a little bit like 'removing an Amazon direct competitor' ? You sell similar/same products as them ?

    If so, it's their marketplace and they can do whatever they like - don't think anyone has sued because of this to date - but there's always a first time !

    Ask them for proof of another linked account ? If its linked surely you have right to access YOUR information ? Data Protection rights ?
    Ben Dame likes this.
  20. Dean

    Dean

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    What Amazon has done is illegal is it?! Any proof or information to back that up? Just one case of someone suing them successfully will do.

    So you don't have to enter false information into ghost?
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