7 ms·
I managed a $60M/yr amazon business and these kind of issues would happen on a monthly basis. We were on Vendor Central so we had a dedicated rep. He would avo
by jeffrwells 6y ago
I managed a $60M/yr amazon business and these kind of issues would happen on a monthly basis.
We were on Vendor Central so we had a dedicated rep. He would avoid helping us however, and use the opportunity to force us to renegotiate our rates (so Amazon could have more margin). Then the issue would disappear.
This happened so often we suspected these automatic issues were actually orchestrated to secure more margin.
The Amazon rep told us that he had quotas to hit of new margin targets for us every quarter.
We also consistently had issues of Amazon reporting under-deliveries and holding our funds. We shipped product in packages of (modulo) 8, and so they ordered in packages of (modulo) 8. When it arrived at the warehouse, they'd mark only 7 delivered, which is not feasible, sell the extra one and refuse to pay us for that 8th unit. This amounted to millions of dollars.
I eventually tracked every single package we had ever shipped and presented evidence of this fraud to them. They offered to pay us 30 cents on the dollar if we signed a waiver forgiving the rest.
- hippich 6y agoI would certainly love to read more about your experience. Not sure if you are tied with some kind of NDA, but if you can share more - please post a complete story!
- pcurve 6y ago"The Amazon rep told us that he had quotas to hit of new margin targets for us every quarter." That is truly wtf.
- toasterlovin 6y agoIt's management by KPI. Possibly the greatest wealth generating mechanism ever created. The closest we have yet come to building the fabled paperclip maximizer of AI doomsayer fame.
- heimatau 6y ago> I eventually tracked every single package we had ever shipped and presented evidence of this fraud to them. They offered to pay us 30 cents on the dollar if we signed a waiver forgiving the rest. Did you get your full dollar? I don't see why you didn't get more, this is ripe for lawsuit.