Amazon started as online book store and has grown to be the worlds largest online retailer.
Apple and Beats products now banned on Amazon (except from authorised retailers)
Amazon have now banned merchants from selling Apple and Beats products on their marketplace. From the 4th of January 2019, Apple and Beats products can only be offered by a small group of select Apple Authorised Resellers as part of Amazon’s new agreement with Apple.
Sellers are reporting that over the weekend Amazon started to remove offers of their Apple and Beats products listed on the site as announced in November. This effectively signals the end of their business unless they have built up sales on alternative marketplaces. Even then, most sellers on Amazon of Apple and Beats products will already be selling on eBay so their business will have been sliced in half this weekend.
This isn’t a particularly unusual arrangement and those familiar with Amazon’s brand registry will be only to familiar with the restrictions brands can impose. On the plus side, for consumers it means that they’ll be purchasing from an official channel but on the downside it means less choice of who to purchase from and very possibly higher prices, although for new Apple products margins have always been tight so discounts low. Authorised resellers will be happy as there will be less competition.
What to do if you have Apple and Beats products in Amazon FBA
If you have any remaining inventory of Apple or Beats products in Amazon fulfilment centres you will now need to create a Removal Order. Amazon said that they will reimburse you for the return or disposal fees until the 4th of February, 2019.
Where can you sell Apple and Beats products
Amazon has been a lucrative channel for sellers of Apple and Beats products but there are now only two options for these merchants. You’ll either need to become an authorised dealer to trade in what’s now become a gated category or find alternative marketplaces to sell on such as eBay, OnBuy and Flubit. Naturally competition on these sites will increase, so spreading your options is more important than ever as many of your competitors will probably focus purely on eBay.
1. this is price fixing.
2. this is a great reason not to put all your eggs in amazon’s basket.
3. amazon complying with this kind of thing, when they have aspirations to be all-pervasive, is a stupid move. this kind of monopolisation and protectionism will only hasten them being broken apart and punitively taxed by governments.
This was probably part of the deal they made with Apple…
Also, this should eliminate fakes, which is a huge problem on eBay for example where fake Apple & Beats products are sold in massive quantities.
So much for a free trade and independent marketplace. What they are doing is illegal and against anti competition laws.
What is the legal situation regards selling items if you are not an authorised supplier of a brand?
We have a supplier who has been trying to remove loads of idiots virtually giving away his products and that includes Amazon themselves. None are buying the items from his authorised distribution centre.
He has Brand registered with Amazon and trying to get people removed they just keep fobbing him off.
It seems the only people they will help are multi billion pound companies and the little man can go and whistle.
He does not want price rigging but when you have an item supplied out at an an RRP of £19.95 and then Amazon are offering it out at £14.64 delivered Prime. It makes a mockery of brick and mortar shops. it really means £10.64 with a risk of return.
If you live across the road from a shop selling it and it’s raining why cross the road you can order it from Amazon and not even go out.
The killer blow is knowing that the shipping others then try to match is around £4 next day so that means there is nothing left in the product as shops and businesses pay UK taxes and need profits unlike Amazon. Then if the item is returned any other Seller Fulfilled Prime seller is billed £2.99 return leaving the item as a minus item.
Then they wonder why people do not stock their items.
We could offer the item on eBay for £19.95 and pay eBay £2.19 fees leaving us £17.76.
When someone buys it purchase from Amazon Prime using our Prime account at £14.64 just changing the delivery address. That would leave us pocketing a little old £3.12 profit and no postage or packaging or handling.
Plus we do not need to place an order for the item in MOQ’s.
But as i say Amazon will only act for the really big boys with the threat of legal muscle behind them. If sellers remove Seller Fulfilled Prime and just offer free shipping watch Amazon take note.
I’m finding it hard to uncover sympathy for your supplier. I understand your plight as a re-seller, but its your suppliers that put you in that hole.
either he is trying to bring about price fixing, or he isn’t, it sounds a lot like he is while simply saying he’s not.
“He does not want price rigging but when you have an item supplied out at an an RRP of £19.95 and then Amazon are offering it out at £14.64″…… then normal, legal, commerce has happened.
an RRP is just a suggestion, 25% off RRP is really not unheard of. in fact it’s kind of expected these days. RRP’s are usually a work of fiction to make it seem like you’re getting a bargain, as i’m sure you know, nobody pays RRP for anything online.
he will be getting his price regardless, he shouldn’t really care much what the end customer pays for it, brand registry aren’t going to help you here.
if other people are ripping off his product and selling counterfeits that are nothing to do with him, then amazon should help there, if he’s not happy that he sold someone legit product and now they’re re-selling it cheaper than he’d like, well tough luck, that’s how the world works and how the law says it should work.
he has a choice who he sells to and at what price, if he genuinely wants B&M stores to sell at internet prices, he can sell to B&M stores cheaper, but he doesn’t.
if he doesn’t want amazon selling his products, don’t sell them to amazon. it’s an incredibly simple and effective process, but he won’t do that either.
(sure amazon might buy from a 3rd party, but that’s easy to spot, easy to counter, and the extra margin from the 3rd party should cover the difference anyway)
sounds to me like he gets the same price from you as he gets from amazon, except amazon phone up once and place an order for 10,000 units at a time, making his life much easier than selling 10 units 1,000 times, so he’s probably throwing an extra bulk discount on there to keep them sweet, and then complaining to you about how terrible amazon are and how he’s powerless to do anything about it.
don’t get me wrong i can see a horrible future ahead if amazon gets their fingers in every pie, but it’s the suppliers that are facilitating this then acting like the victims when their old SME customer base disappears.
we tell our suppliers that we require advance notification if they intend on selling direct to amazon, so we can pull any competing products and clear their stock beforehand, many are surprised we would take this approach, when we explain how it would be impossible to compete head on, and explain these consequences to them, they usually understand and appreciate it, and are infinitely less likely to destroy their own long-term viability for short-term gain by going down this same road.
i get the same gripes when i see farmers on the TV crying that tesco bought all their milk at 12p per pint. did tesco kick the door in and drive off with all the milk, leaving money behind like a robber that doesn’t quite understand the concept? no. you sold them it for that price, so you really have no grounds to complain about a price you agreed to. if you can’t viably sell it for 12p a pint, then don’t. go back to doing doorstep deliveries or something, except it’s too much like work when tesco just made it all so easy taking all the milk in one big go……
Sadly the fakers and poor sellers have become a big issue that the big companies really don’t want the hassle of dealing with ( and that includes the market places. So this has driven this kind of thing. It’s a simple and effective solution to all but the small decent sellers who get caught up in the net.
While many will dash to ebay…. they have been slowly moving this direction too. Of course being ebay it has been at a painfully slow pace. The big market places are now looking for maximum profits for minimum work… and pushing out the little guys etc is one way to do it.
is there really a BIG problem with fake apple products on amazon? really?
sure somebody at some point has tried selling a fake iphone stupidly cheap, probably somebody fell for it, and when a cheap obviously chinese knock-off appel e-phon arrived, they would have complained to amazon, and something would have happened about it.
it’s not like ebay where you can refund 1,000 fake memory cards every single month and still keep trading worry-free, amazon occasionally cancel our completely legitimate listings (often for our own brands) because TWO customers in a YEAR have erroneously reported it as being counterfeit just to get a free return.
this is a sledgehammer to crack a ficitonal walnut. it’s complete overkill and has little or nothing to do with combatting fakes in my opinion, and a lot to do with increasing profits for apple and amazon at the expense of legit sellers and consumers.
Hi Jake not sure what you understanding is but you talk as though Amazon are paying the same prices and then batting on a level playing field.
They are purchasing via a 3rd party maybe. But Jimmy Choo has stopped sellers even who are buying from their Distribution so its genuine. Calvin Klein have done the same and Amazon sucks up to them and removes the listings.
Amazon are not trading fairly when they ship for free. and will not let any of us use that free delivery company (fictional does not exist) and then pay all their billion pound tax bill to the UK government (oh sorry they don’t) they are destroying retailers everywhere. After all you tell me what person gets a dog and then says oh i need one of those special things that looks like that. They dont
They need to see it first in a shop window or tv advert then they shop online for it at the best price but when no-one stocks it the product fails. As for your understanding of milk sales to Tesco it is rather lacking.
Wisemans carry out all milk deliveries and orders in the UK controlling the whole market place for every supermarket not just Tesco and they dictate the prices. Of course the farmer can say get lost and milk his herd directly down the drain and stand a few pints at the farm gate hoping to sell a few litres unfortunately that will end with him bust.
No market place for a fresh product means they can do nothing about it. and people are not going to go to the farm gate to collect it.
i don’t understand half of what your reply actually says….
as far as your supplier is concerned, amazon are on a level playing field, then your supplier sets the rules, if he doesn’t like them he doesn’t play ball with amazon.
Amazon being on an unlevel field with you doesn’t give your supplier any reason to cry, they helped make your field unlevel.
again i don’t understand what you’re trying to say here. if amazon buy from a third party, then they cannot possibly sell cheaper than that third party can. it’s simple maths. you and the third party and everyone else buying direct from source should be able to sell cheaper than anyone who buys further down the supply chain, unless your supplier is screwing you, and then crying to you about it, like i said.
“Amazon are not trading fairly when they ship for free.” nonsense. and has nothing to do with your supplier crying. are you trading unfairly if you hop in your own car and hand-deliver a parcel to your customer? are you trading unfairly if you don’t then deliver parcels for your competitor next door for free?
yes it gives amazon a competitive edge, that’s business. they’re good at it. it’s certainly not “free” when you need to invest millions of pounds in infrastructure to facilitate it.
the driver and the fuel and the tyres all continue costing money, which amazon needs to pay, then they do let you use their couriers at a competitive price, and nobody says you can’t go and set up your own courier co if you feel it’s so good it’s basically cheating.
again, why would your supplier give two hoots about any of that? they don’t.
“As for your understanding of milk sales to Tesco it is rather lacking.
– Wisemans carry out all milk deliveries….”
well yes apparently my understanding is lacking, one would assume, with merely a basic understanding of economics, that if one company controls a monopoly over an essential everyday product, that they can basically set their own price for it. i really don’t understand how they can own all the milk, and then complain that some people are getting it too cheap. if you have a monopoly they either pay what it’s worth or they don’t get it, end of story.
yes they can pour all the milk down the drain today, and next week it’ll be £2 a pint not 12p per pint, that’s one of the things a monopoly does for you. you can sell a whole lot less for a whole lot more and there’s very little anyone can do about it except go milkless or buy a cow.
i don’t believe this monopoly you describe exists, or else this problem wouldn’t exist, so it’s no wonder i don’t understand it.