6 ms·

The argument is they're tying usage of FBA to selling on their marketplace, which unfairly boosts FBA usage even if more expensive or worse service than competi

by ikeboy 7y ago

The argument is they're tying usage of FBA to selling on their marketplace, which unfairly boosts FBA usage even if more expensive or worse service than competitors such as FedEx or UPS. In particular, if you use FBA you aren't held responsible by Amazon for late deliveries but if you use other services you are. Also, their data shows only 15% of Amazon deliveries are actually meeting the 2-day timeline.

Alupis 7y ago
I can say firsthand, using FBA for a product absolutely boosts it's search ranking, and leads to an increase in sales. Sometimes dramatically so. It's not uncommon to offer both FBA and FBM on the same item, in case you run out of stock of the FBA item or vice-versa. Same price, same delivery dates... but the FBA product will outpace your FBM product dramatically. So those merchants that try to FBM exclusively are put at a double disadvantage - rank worse in search, and get harshly penalized if a product is delivered late (even though once it leaves your warehouse, it's up to the USPS/UPS/FedEx meet their delivery promise). Also, the article alleges FBA fees are not in-line with market rates for 3PL, and the close tie between Amazon's Logistics Network and Marketplace has caused a price increase to consumers, which harms consumers unfairly - thus the Anti-Trust case.
- privateSFacct 7y ago
  What about purchasers who are tired of crappy FBM shipments? I bought a book on amazon FBM. It cost like $100. Turns out it was shipping from overseas and took 3 MONTHS to get to me (I was sure it would not). I had to buy a different one in the meantime. I've bought FBM and had stuff come from china in a flimsy envelope crushed. I've no idea how they can justify shipping this crap internationally. FBA from a customer standpoint is simply more predictable. I can get extremely short delivery times (most are next day where I am for some reason instead of two day). Did they do any analysis of whether customers are willing to pay more for FBA? I wouldn't be surprised if they were. You also tend to get fewer boxes if you do FBA. I did a bunch of third party orders once for an electronics project (think 30 different small things) most were FBM and all came in separate small boxes which is ridiculous.
  - SpicyLemonZest 7y ago
    Yeah, I can vouch for this. When I care about when I get the delivery, I go out of my way to make sure the thing I'm ordering is fulfilled by Amazon.
  - ineedasername 7y ago
    Yes, definitely this. I generally buy only via FBA for this reason, I don't mind paying a few dollars more to know I'll get it quickly and also have an easy return process if needed.
    - privateSFacct 7y ago
      I forgot about the easy returns. I'm not sure what their deal is but the local Kohl's will actually PACK and ship your stuff back to amazon - then gives you a 40% discount to the store in my case. I just actually screwed up and bought something expensive that turned out not to be a good fit from a non amazon seller (no return). I'm going to eat the loss and buy from amazon for the next - my own fault there.
  - Alupis 7y ago
    > Turns out it was shipping from overseas This is by Amazon's design too. If you use the "Buy Box" (add to cart button on the product page), it's quite difficult to see who you're buying from and from where the item ships from. However, if you select "More offers from..." button, hidden on the page pretty well, you can see exactly where the product ships from, and expected delivery dates, as well as seller feedback ratings and number of feedbacks (giving you an idea of size of the seller). Many of us FBM's have primary websites we sell on that make majority of our annual revenue, and our own distribution network. Guess what? The same products we sell on Amazon are cheaper on our website - and we'll still get the product to you in 2-3 days, often with Free Shipping too. We don't have to pay Amazon fees that way, and we stand behind our company name - we're not going to screw you over in some shady way like pretend to be American but actually ship from China. It's insane that we've spent all this money, and decades building our own fulfillment network, warehouses, and processes - but when we sell on Amazon, we're compelled to use their FBA just so we can sell enough product there to be worth our time.
- toasterlovin 7y ago
  FWIW, when we looked at fulfillment costs, FBA was more or less competitive, price wise.
  - Alupis 7y ago
    When was this? FBA fees have gone up over the past few years. And... it's more expensive than FBM if you've already got your own staff, warehouses, carrier agreements, etc... which is part of the Anti-Trust argument the article is making (being compelled to use FBA).

by ikeboy 7y ago

Alupis 7y ago

I can say firsthand, using FBA for a product absolutely boosts it's search ranking, and leads to an increase in sales. Sometimes dramatically so. It's not uncommon to offer both FBA and FBM on the same item, in case you run out of stock of the FBA item or vice-versa. Same price, same delivery dates... but the FBA product will outpace your FBM product dramatically. So those merchants that try to FBM exclusively are put at a double disadvantage - rank worse in search, and get harshly penalized if a product is delivered late (even though once it leaves your warehouse, it's up to the USPS/UPS/FedEx meet their delivery promise). Also, the article alleges FBA fees are not in-line with market rates for 3PL, and the close tie between Amazon's Logistics Network and Marketplace has caused a price increase to consumers, which harms consumers unfairly - thus the Anti-Trust case.

privateSFacct 7y ago
What about purchasers who are tired of crappy FBM shipments? I bought a book on amazon FBM. It cost like $100. Turns out it was shipping from overseas and took 3 MONTHS to get to me (I was sure it would not). I had to buy a different one in the meantime. I've bought FBM and had stuff come from china in a flimsy envelope crushed. I've no idea how they can justify shipping this crap internationally. FBA from a customer standpoint is simply more predictable. I can get extremely short delivery times (most are next day where I am for some reason instead of two day). Did they do any analysis of whether customers are willing to pay more for FBA? I wouldn't be surprised if they were. You also tend to get fewer boxes if you do FBA. I did a bunch of third party orders once for an electronics project (think 30 different small things) most were FBM and all came in separate small boxes which is ridiculous.
- SpicyLemonZest 7y ago
  Yeah, I can vouch for this. When I care about when I get the delivery, I go out of my way to make sure the thing I'm ordering is fulfilled by Amazon.
- ineedasername 7y ago
  Yes, definitely this. I generally buy only via FBA for this reason, I don't mind paying a few dollars more to know I'll get it quickly and also have an easy return process if needed.
  - privateSFacct 7y ago
    I forgot about the easy returns. I'm not sure what their deal is but the local Kohl's will actually PACK and ship your stuff back to amazon - then gives you a 40% discount to the store in my case. I just actually screwed up and bought something expensive that turned out not to be a good fit from a non amazon seller (no return). I'm going to eat the loss and buy from amazon for the next - my own fault there.
- Alupis 7y ago
  > Turns out it was shipping from overseas This is by Amazon's design too. If you use the "Buy Box" (add to cart button on the product page), it's quite difficult to see who you're buying from and from where the item ships from. However, if you select "More offers from..." button, hidden on the page pretty well, you can see exactly where the product ships from, and expected delivery dates, as well as seller feedback ratings and number of feedbacks (giving you an idea of size of the seller). Many of us FBM's have primary websites we sell on that make majority of our annual revenue, and our own distribution network. Guess what? The same products we sell on Amazon are cheaper on our website - and we'll still get the product to you in 2-3 days, often with Free Shipping too. We don't have to pay Amazon fees that way, and we stand behind our company name - we're not going to screw you over in some shady way like pretend to be American but actually ship from China. It's insane that we've spent all this money, and decades building our own fulfillment network, warehouses, and processes - but when we sell on Amazon, we're compelled to use their FBA just so we can sell enough product there to be worth our time.
toasterlovin 7y ago
FWIW, when we looked at fulfillment costs, FBA was more or less competitive, price wise.
- Alupis 7y ago
  When was this? FBA fees have gone up over the past few years. And... it's more expensive than FBM if you've already got your own staff, warehouses, carrier agreements, etc... which is part of the Anti-Trust argument the article is making (being compelled to use FBA).