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This story is frightening, but at the same time inspiring too, considering the volume they managed to achieve. Seems like everything would have turned out OK if

by bemmu 13y ago

This story is frightening, but at the same time inspiring too, considering the volume they managed to achieve. Seems like everything would have turned out OK if the product had not been media. Slightly confused about how the second business ran though, as it says they bought private collections of DVDs, but they must have been new, otherwise couldn't put them co-mingled on FBA.

byoung2 13y ago
It sounds like he sent used items, but customers (and the law firm) received new, sealed items sent in by other merchants. This would seem to be a problem when someone orders a new item from a merchant participating in comingling, and there are only used ones in stock.
Lazare 13y ago
I got the feeling they bought lots of DVDs for a variety of sources; estate sales, going-out-of-business sales, disposals from other merchants or whatever. There's no reason to think some new/shrinkwrapped items wouldn't be in there. For example: My mother has an enormous collection of DVDs, some of which she rented from the local DVD rental shop, loved, and then purchased a (new) copy from Amazon "just so she owns a copy" but has never rewatched it or even unwrapped it. As I don't watch DVDs, in the (hopefully long away) event of her passing, I'd be highly inclined to see if I could find someone to just take the entire collection off my hands for a reasonable sum. In theory, some of those DVDs, including "new" shrinkwrapped DVDs could end up as FBA merchandise. In fact, it's entirely possible that she has a shrinkwrapped, counterfeit DVD right now without even knowing it (due to commingling, who knows where the DVDs she orders, overwhelmingly from Amazon, actually came from?); a timebomb waiting to take out some FBA merchant if it ever finds its way back into Amazon's supply chain (which isn't unlikely). The more I think about it, the more FBA and commingling seem like utter disasters. It's mixing untrusted merchandise into a "trusted" pool; I can't know if the DVD I buy from Amazon came from Amazon or not.
Spooky23 13y ago
It's frightening in that it points out the big weaknesses of depending on standardized service offerings from big vendors. This guy ran a sort-of successful business that was utterly dependent on Amazon fulfillment services without a good contract. No human at Amazon had any incentive for his business to continue -- not even a salesman. So when Amazon decided he was done, he was out of business. At least the email support guy felt bad about it. At the same time, he's utterly dependent on Amazon. Fast shipping and outsourced fulfillment with the Prime tie-in keep him in business. HNers should think about that when they make decisions that lock them into various tenant-based technology stacks.

by bemmu 13y ago

byoung2 13y ago

It sounds like he sent used items, but customers (and the law firm) received new, sealed items sent in by other merchants. This would seem to be a problem when someone orders a new item from a merchant participating in comingling, and there are only used ones in stock.

Lazare 13y ago

I got the feeling they bought lots of DVDs for a variety of sources; estate sales, going-out-of-business sales, disposals from other merchants or whatever. There's no reason to think some new/shrinkwrapped items wouldn't be in there. For example: My mother has an enormous collection of DVDs, some of which she rented from the local DVD rental shop, loved, and then purchased a (new) copy from Amazon "just so she owns a copy" but has never rewatched it or even unwrapped it. As I don't watch DVDs, in the (hopefully long away) event of her passing, I'd be highly inclined to see if I could find someone to just take the entire collection off my hands for a reasonable sum. In theory, some of those DVDs, including "new" shrinkwrapped DVDs could end up as FBA merchandise. In fact, it's entirely possible that she has a shrinkwrapped, counterfeit DVD right now without even knowing it (due to commingling, who knows where the DVDs she orders, overwhelmingly from Amazon, actually came from?); a timebomb waiting to take out some FBA merchant if it ever finds its way back into Amazon's supply chain (which isn't unlikely). The more I think about it, the more FBA and commingling seem like utter disasters. It's mixing untrusted merchandise into a "trusted" pool; I can't know if the DVD I buy from Amazon came from Amazon or not.

Spooky23 13y ago

It's frightening in that it points out the big weaknesses of depending on standardized service offerings from big vendors. This guy ran a sort-of successful business that was utterly dependent on Amazon fulfillment services without a good contract. No human at Amazon had any incentive for his business to continue -- not even a salesman. So when Amazon decided he was done, he was out of business. At least the email support guy felt bad about it. At the same time, he's utterly dependent on Amazon. Fast shipping and outsourced fulfillment with the Prime tie-in keep him in business. HNers should think about that when they make decisions that lock them into various tenant-based technology stacks.