This week at Accelerate, Amazon’s premier seller conference, we announced Supply Chain by Amazon: an end-to-end, fully automated set of supply chain services that provide a complete solution to quickly and reliably move products directly from your manufacturers to customers around the world.
So what do they need sellers for ?
Oh yeah no way this can go belly up!
I guess it mitigates risk and front end capital and then there is advertising - so this would open new profit centers for amazon with existing infrastructure or add-ons like AGL etc as being part of the supply chain - it’s a nice idea but it’s really too big and will fail.
AGL is a mess as it is.
1 Like
To pay fees, of course.
6 Likes
To accept the risk.
If Amazon sources something they are now liable for it.
If a 3rd party does (E-Scooters) and they, oh I don’t know, randomly catch fire, Amazon can say “not us!” and debit from the seller account for the refunds.
4 Likes
Partially true. If the seller doesn’t have funds to pay for all the refunds Amazon still gets stuck with the remainder of the bill.
Same situation with recalled products. The manufacturer is typically responsible for footing the cost of it, but if they can’t pay then someone else (retailer) gets stuck with the bill.
The biggest reason IMO is the 15% fee they collect off sellers is > their typical margins
So…drop shipping 
1 Like
True, until Amazon goes after the liability insurance of the seller.
2 Likes
Does that cover debts owed to Amazon? Given the premiums you pay for liability insurance I would think it does not, because otherwise these policies would be a hell of a lot more expensive if the insurance company had to pay out on bad debt. Not paying Amazon back for refunds is on par with not paying rent on your warehouse
It would cover the liability.
2 Likes
This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.