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> Amazon’s practice of coercing sellers who want their products to be Prime eligible into using Fulfillment by Amazon, which makes it more difficult and more ex

by Spivak 2y ago

> Amazon’s practice of coercing sellers who want their products to be Prime eligible into using Fulfillment by Amazon, which makes it more difficult and more expensive for rivals to offer increased product selection. How would this even work? It's on Amazon to deliver your stuff in 2 days but they also have to allow 3rd party shipping they have no control over? Are they allowed to require such a seller to fulfill the order by a specific date? Because to me a lowly customer Prime === Item Shipped by Amazon. That's the whole value.

aspenmayer 2y ago
Fulfilled by Amazon is a 3rd party seller program where you send your items for sale to Amazon to be colocated and commingled with other 3rd party FBA seller items with the same SKU and also 1st party Amazon products with that SKU. If that sounds like a horrible idea for all involved, I would agree.
- stephenr 2y ago
  Didn't I read something a few years ago about shitty sellers abusing that system by sending counterfeit versions of products to Amazon, and then legitimate sellers get fucked over when their customers get the counterfeit version (because hey were commingled)?
  - aspenmayer 2y ago
    I seem to remember something like that. Here are some pros/cons for opting out of commingling which I don’t think that is possible with FBA, but would likely make the products ineligible for Prime I would assume, which is one of the main reasons you would want to use FBA in the first place. https://www.amazonsellers.attorney/blog/pros-and-cons-of-amazon-commingling-fba-inventory-of-third-party-sellers#:~:text=Key%20Takeaways,how%20to%20resolve%20the%20issue https://www.amazonsellers.attorney/blog/pros-and-cons-of-ama.... > In summary, Amazon's commingling inventory can have serious implications for FBA sellers who are wrongfully accused of selling defective or inauthentic products. While the practice may improve efficiency, it can also make it difficult for sellers to prove their innocence in the event of false accusations. Sellers should be aware of these risks and take steps to protect themselves, such as opting out of commingling inventory or closely monitoring their inventory and customer feedback.
    - unmole 2y ago
      The article you linked to reads like AI generated slop. Sellers absolutely can opt out of comingled inventory without losing FBA and Prime. https://news.ycombinator.com/item?id=41773581 https://news.ycombinator.com/item?id=41773581
      - aspenmayer 2y ago
        Yeah, it’s hilarious because Google Gemini came up with that link. To your point, maybe it depends on the product? https://sellercentral.amazon.com/help/hub/reference/external/201100910 https://sellercentral.amazon.com/help/hub/reference/external... > By default, we use the manufacturer barcode to track eligible inventory throughout the fulfillment process, unless you change your barcode setting or your product is not eligible. When more than one seller has inventory with the same manufacturer barcode, we may fulfill orders with the inventory that’s closest to the buyer, to facilitate faster delivery. > If your product isn’t eligible for virtual tracking with the manufacturer barcode, an Amazon barcode is required. You may be able to get an exemption to use the manufacturer barcode by enrolling your ASIN in Amazon Brand Registry. To learn more about virtual tracking and see product eligibility requirements, go to,Using manufacturer barcodes with FBA virtual tracking.
  - unmole 2y ago
    By default inventory is tracked by seller specific FNSKU's and is not comingled. Sellers have to explicitly opt in and jump through additional hoops for their inventory to be tracked using GTIN's whereby their inventory will get comingled with inventory with other sellers who opted for the same.
    - dkersten 2y ago
      That’s not what it says here: https://sellercentral.amazon.com/help/hub/reference/external/201100910 https://sellercentral.amazon.com/help/hub/reference/external... > By default, we use the manufacturer barcode to track eligible inventory throughout the fulfillment process, unless you change your barcode setting or your product is not eligible. When more than one seller has inventory with the same manufacturer barcode, we may fulfill orders with the inventory that’s closest to the buyer, to facilitate faster delivery
- unmole 2y ago
  > colocated and commingled with other 3rd party FBA sellers I don't understand why this misconception is so widespread. Most inventory is tracked using seller specific FNSKU's. Ergo inventory is not comingled.
  - aspenmayer 2y ago
    Good to know. Vendors should make every effort to protect their customers and their reputation by using that feature. https://sellercentral.amazon.com/help/hub/reference/external/201100910 https://sellercentral.amazon.com/help/hub/reference/external...
  - Jolter 2y ago
    From that page: > When more than one seller has inventory with the same manufacturer barcode, we may fulfill orders with the inventory that’s closest to the buyer, to facilitate faster delivery. Isn’t that a form of commingling of inventory? If one of the sellers I selling fakes, I think the other seller would be blamed whenever this happens.

by Spivak 2y ago

aspenmayer 2y ago

Fulfilled by Amazon is a 3rd party seller program where you send your items for sale to Amazon to be colocated and commingled with other 3rd party FBA seller items with the same SKU and also 1st party Amazon products with that SKU. If that sounds like a horrible idea for all involved, I would agree.

stephenr 2y ago
Didn't I read something a few years ago about shitty sellers abusing that system by sending counterfeit versions of products to Amazon, and then legitimate sellers get fucked over when their customers get the counterfeit version (because hey were commingled)?
- aspenmayer 2y ago
  I seem to remember something like that. Here are some pros/cons for opting out of commingling which I don’t think that is possible with FBA, but would likely make the products ineligible for Prime I would assume, which is one of the main reasons you would want to use FBA in the first place. https://www.amazonsellers.attorney/blog/pros-and-cons-of-amazon-commingling-fba-inventory-of-third-party-sellers#:~:text=Key%20Takeaways,how%20to%20resolve%20the%20issue https://www.amazonsellers.attorney/blog/pros-and-cons-of-ama.... > In summary, Amazon's commingling inventory can have serious implications for FBA sellers who are wrongfully accused of selling defective or inauthentic products. While the practice may improve efficiency, it can also make it difficult for sellers to prove their innocence in the event of false accusations. Sellers should be aware of these risks and take steps to protect themselves, such as opting out of commingling inventory or closely monitoring their inventory and customer feedback.
  - unmole 2y ago
    The article you linked to reads like AI generated slop. Sellers absolutely can opt out of comingled inventory without losing FBA and Prime. https://news.ycombinator.com/item?id=41773581 https://news.ycombinator.com/item?id=41773581
    - aspenmayer 2y ago
      Yeah, it’s hilarious because Google Gemini came up with that link. To your point, maybe it depends on the product? https://sellercentral.amazon.com/help/hub/reference/external/201100910 https://sellercentral.amazon.com/help/hub/reference/external... > By default, we use the manufacturer barcode to track eligible inventory throughout the fulfillment process, unless you change your barcode setting or your product is not eligible. When more than one seller has inventory with the same manufacturer barcode, we may fulfill orders with the inventory that’s closest to the buyer, to facilitate faster delivery. > If your product isn’t eligible for virtual tracking with the manufacturer barcode, an Amazon barcode is required. You may be able to get an exemption to use the manufacturer barcode by enrolling your ASIN in Amazon Brand Registry. To learn more about virtual tracking and see product eligibility requirements, go to,Using manufacturer barcodes with FBA virtual tracking.
- unmole 2y ago
  By default inventory is tracked by seller specific FNSKU's and is not comingled. Sellers have to explicitly opt in and jump through additional hoops for their inventory to be tracked using GTIN's whereby their inventory will get comingled with inventory with other sellers who opted for the same.
  - dkersten 2y ago
    That’s not what it says here: https://sellercentral.amazon.com/help/hub/reference/external/201100910 https://sellercentral.amazon.com/help/hub/reference/external... > By default, we use the manufacturer barcode to track eligible inventory throughout the fulfillment process, unless you change your barcode setting or your product is not eligible. When more than one seller has inventory with the same manufacturer barcode, we may fulfill orders with the inventory that’s closest to the buyer, to facilitate faster delivery
unmole 2y ago
> colocated and commingled with other 3rd party FBA sellers I don't understand why this misconception is so widespread. Most inventory is tracked using seller specific FNSKU's. Ergo inventory is not comingled.
- aspenmayer 2y ago
  Good to know. Vendors should make every effort to protect their customers and their reputation by using that feature. https://sellercentral.amazon.com/help/hub/reference/external/201100910 https://sellercentral.amazon.com/help/hub/reference/external...
- Jolter 2y ago
  From that page: > When more than one seller has inventory with the same manufacturer barcode, we may fulfill orders with the inventory that’s closest to the buyer, to facilitate faster delivery. Isn’t that a form of commingling of inventory? If one of the sellers I selling fakes, I think the other seller would be blamed whenever this happens.