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I got the same kind of card ordering a laptop charger earlier this year. Tried to report it to Amazon. Got back a canned response telling me to report individua

I got the same kind of card ordering a laptop charger earlier this year. Tried to report it to Amazon. Got back a canned response telling me to report individual reviews. Amazon doesn't care.

drzaiusapelord 6y ago
Worse, there's no such thing as 'free' money. If they can pay us $20 per item to write reviews, they are over-charging us $20 per item. So whoever doesn't do this is over-paying $20. If you buy 100 items like this a year, you're burning $2,000. That's non-trivial money for most people.
- AlexandrB 6y ago
  Solution: don't shop on Amazon.
- ninju 6y ago
  Sorta true, You were still willing to pay the listed price. The fact that you were subsidizing their reward program doesn't diminish the fact that it was cheap enough for you to buy. Also they maybe doing this promotion as a loss-leader to build marketshare/brand recognition and are willing to work with lower net profit.
- notafraudster 6y ago
  It doesn't follow that if they can pay you $20, they can pay everyone $20. They have an expected uptake, and they have a model for how the reviews translate to more sales. I agree that it's likely that at least some of this marketing is priced into the price and there's some inflation, but I suspect the overall uptake of stuff like this is <20% and it generates non-zero additional sales, so I would guess the margin is more like $2-4 or so.
  - csnover 6y ago
    Once you start looking at the actual numbers it becomes pretty clear that most of these arbitrage sellers could give every customer $20 and still make money. For example, the top search result for “webcam” on Amazon.com right now usually sells for $35[0]. Its wholesale price on Alibaba for 5k units is $3.84[1] + $2.04 shipping per unit. Plug those numbers into Amazon’s FBA profitability calculator[2] and you’ll find that the seller only needs to sell 67 units per month to break even, after giving every buyer $20, because the seller’s net margin at this volume is nearly 60%. [0] https://camelcamelcamel.com/product/B087NN41JH https://camelcamelcamel.com/product/B087NN41JH [1] https://www.alibaba.com/product-detail/China-Factory-Wholesale-1080P-Live-Broadcast_62591376707.html https://www.alibaba.com/product-detail/China-Factory-Wholesa... [2] https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index https://sellercentral.amazon.com/hz/fba/profitabilitycalcula...

I got the same kind of card ordering a laptop charger earlier this year. Tried to report it to Amazon. Got back a canned response telling me to report individual reviews. Amazon doesn't care.

drzaiusapelord 6y ago

Worse, there's no such thing as 'free' money. If they can pay us $20 per item to write reviews, they are over-charging us $20 per item. So whoever doesn't do this is over-paying $20. If you buy 100 items like this a year, you're burning $2,000. That's non-trivial money for most people.

AlexandrB 6y ago
Solution: don't shop on Amazon.
ninju 6y ago
Sorta true, You were still willing to pay the listed price. The fact that you were subsidizing their reward program doesn't diminish the fact that it was cheap enough for you to buy. Also they maybe doing this promotion as a loss-leader to build marketshare/brand recognition and are willing to work with lower net profit.
notafraudster 6y ago
It doesn't follow that if they can pay you $20, they can pay everyone $20. They have an expected uptake, and they have a model for how the reviews translate to more sales. I agree that it's likely that at least some of this marketing is priced into the price and there's some inflation, but I suspect the overall uptake of stuff like this is <20% and it generates non-zero additional sales, so I would guess the margin is more like $2-4 or so.
- csnover 6y ago
  Once you start looking at the actual numbers it becomes pretty clear that most of these arbitrage sellers could give every customer $20 and still make money. For example, the top search result for “webcam” on Amazon.com right now usually sells for $35[0]. Its wholesale price on Alibaba for 5k units is $3.84[1] + $2.04 shipping per unit. Plug those numbers into Amazon’s FBA profitability calculator[2] and you’ll find that the seller only needs to sell 67 units per month to break even, after giving every buyer $20, because the seller’s net margin at this volume is nearly 60%. [0] https://camelcamelcamel.com/product/B087NN41JH https://camelcamelcamel.com/product/B087NN41JH [1] https://www.alibaba.com/product-detail/China-Factory-Wholesale-1080P-Live-Broadcast_62591376707.html https://www.alibaba.com/product-detail/China-Factory-Wholesa... [2] https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index https://sellercentral.amazon.com/hz/fba/profitabilitycalcula...