Amazon Scam Destroys a Successful Business 2023
Amazon Scam Destroys a Successful Business 2023 Over the past decade, many entrepreneurs have discovered the Amazon gold mine.
The beginning of a successful business on Amazon Amazon Scam Destroys a Successful Business 2023:
which has enabled thousands of them to build large businesses and make tons of money in the process. We keep hearing about Amazon businesses selling for millions of dollars and in some cases hundreds of millions.
Unfortunately, like everything else, there are two sides to Amazon’s coin. The flip side of Amazon’s success can be as painful for the entrepreneur as it is for the outside observer. There are many hidden dangers lurking in Jeff Bezos’ online business, any of which can sink your entrepreneurial ship in the blink of an eye Amazon Scam Destroys a Successful Business 2023.
Ask any Amazon seller what they fear most, and the answer you’ll invariably get is account suspension. Amazon’s terms and conditions are a seemingly endless list of reasons your account can be suspended. However, this can actually happen if their bots decide they don’t like it Amazon Scam Destroys a Successful Business 2023.
And once the bot flags your account, good luck explaining to a human employee why your account should be reinstated Amazon Scam Destroys a Successful Business 2023.
Just today, your correspondent came across a perfect example of the absurdity that Amazon sellers are unfortunately forced to deal with on a daily basis.
A successful Amazon seller was successfully targeted by fraudsters in a sophisticated operation that resulted in the suspension of the seller’s account and the virtual destruction and eventual bankruptcy of their business. Here’s how it happened Amazon Scam Destroys a Successful Business 2023.
Please note that I will not release sensitive information about the seller to protect them from retribution and will instead focus on fraud Amazon Scam Destroys a Successful Business 2023.
This Amazon journey began in early 2018 with a product that the entrepreneur spent a lot of time designing. They took the extra and very expensive step of patenting their product design before releasing the first version a year and a half later.
The product was unique and obviously well-made, making it an instant success, prompting thousands of satisfied customers to leave five-star reviews right from the start. Within months, this first product became an Amazon bestseller in one of the most competitive categories, garnering a total of over 30,000 reviews with a staggering average rating of 4.8 stars Amazon Scam Destroys a Successful Business 2023.
Amazon’s success attracts envy Amazon Scam Destroys a Successful Business 2023?
Amazon Scam Destroys a Successful Business 2023 And just when this entrepreneur’s first product seems destined for world conquest, a storm begins to gather. As any Lord of the Rings fan knows, success and happiness attract envy and malice, and this story proves Tolkien’s wisdom.
Roughly a year and a half after its successful launch, a new player is entering this very competitive market where the top 15 sellers have amassed over 15,000 reviews each. Good luck breaking in, huh Amazon Scam Destroys a Successful Business 2023?
Well, this particular rookie isn’t your garden-variety rookie, and he’s developed a solid strategy to ensure his success, using any means necessary to inflict as much pain on his opponents as he can muster Amazon Scam Destroys a Successful Business 2023.
Amazon Scam Destroys a Successful Business 2023 First, a newbie, let’s call them Gollum, files a fake copyright complaint, causing the suspension of the great product that our successful entrepreneur, let’s call them Frodo, spent so much time, money and work developing.
Now, as anyone who has even a vague idea of how Amazon’s seller support system works, the suspension is a big deal. They ask you to provide all kinds of documents to prove all kinds of things related to the validity of your business and products, some of which you might guess, but most of which you could never think of. And to top it off, the review process is rarely short and straight forward.
In this case, Frodo takes three weeks to restore his product, losing thousands and thousands of sales in the process and suffering a huge drop in Amazon search results. So, in addition to the sales he lost in those three weeks of inactivity, Frodo is effectively penalized with the loss of many more sales in the weeks and months to come because his product is now virtually invisible and buried under all of his competitors. products Amazon Scam Destroys a Successful Business 2023.
To make matters worse, Glum’s product manages to become the best seller in an entire subcategory in a single day, a seemingly impossible feat considering that its Best Seller Rank (BSR), a measure of how well a given product is selling compared to its competitors products, is much lower than competitors. So how does Gollum do it?
Amazon dupe makeup
After some basic research, Frodo discovers that Gollum used a one-off secondary vendor account to get hold of a competitor’s offer (which is a different can of worms, best left for another day). Having secured a position in the target category, Gollum sets the second part of his insidious plan in motion by offering a huge discount to anyone who buys his product Amazon Scam Destroys a Successful Business 2023.
Amazon Scam Destroys a Successful Business 2023 To find willing buyers, he turns to dedicated Facebook groups with users looking for free (or as close to free as it gets) products. Overnight Gollum starts “selling” 5,000-6,000 items a day and has deep enough pockets to carry those losses for a week (note that each such “sale” costs Gollum not only the price of the product himself, but all of Amazon’s fees for each sale, as well as its shipping and handling costs).
But wait, Gollum doesn’t actually pay any shipping and handling costs, even though he doesn’t use Fulfilled by Amazon (FBA), which does it for the seller, but decided to do it himself. And that is why he uses a one-time seller account: he receives orders, but does not send any of them Amazon Scam Destroys a Successful Business 2023.
Of course, Amazon will eventually close that account, and it does, but that’s okay. By the time the one-time account disappears, Gollum’s product is leading the search results and his main account is now activated and using FBA. Sales are starting to roll in, but Gollum isn’t done yet… Far from it.
Make sure your opponent’s account remains penalized
To ensure that his rival never gets a chance to recover, Gollum constantly kicks him when he’s down by constantly making false complaints of various kinds against him. He starts by labeling Frodo’s product as adult (sex toys), causing his competitor to be de-indexed (and out of the picture) for over a week straight.
Every time Frodo’s product is suspended, Gollum’s sales take another hit and he files his fake complaints as often as he can for best results. For variety, Gollum uses the full spectrum of Amazon’s forbidden activities:
False copyright claims – Amazon takes more than a week to restore a product after such a suspension.
False reports of abuse of variations – this is also a subject for another day, but it takes about a week to recover.
False violations and complaints about restricted keywords. This is another topic for another day, but for today’s purposes suffice it to say that a certain type of account, called a supplier account, allows its owners to.
This post was written by Mike Young, an online Amazon and eBay seller based in London, England Amazon Scam Destroys a Successful Business 2023.
Everyone knows that competition on Amazon is fierce. But I didn’t realize how wild until my business lost 50% of its sales in one month due to the black hat tactics of an “online marketing expert” hired by a competitor.
What started as a false claim of trademark infringement turned into a policy warning, a stream of fake negative reviews, and my suspension from selling on Amazon.
In this post, I will explain how my business was targeted, what tactics were used, and how I discovered who was behind the attacks Amazon Scam Destroys a Successful Business 2023.
I started selling on marketplaces back in 2014 because my wife wanted to start an online business. We started with eBay, but after a few months we decided to switch to Amazon because it was easier and cheaper to fulfill with FBA than our own fulfillment on eBay Amazon Scam Destroys a Successful Business 2023.
We are a family business and sell a range of products such as branded toys, electronic accessories and seasonal goods as well as our own private label sporting goods. At our peak, we achieved six-figure turnover and planned international expansion in 2018. That was until our Amazon seller account was targeted by an “online marketing” agency that decided to bring my business to the bottom.
First trademark infringement complaint
The attacks began on October 31st, when Amazon alerted us that another seller had filed a complaint against it, saying that one of the products we were selling was infringing on their trademark. When I went to look at the listing, I noticed it was incorrect because the brand name was set as the seller’s own trade name instead of the manufacturer Amazon Scam Destroys a Successful Business 2023.
I thought it was all just a real mistake.
I initially thought the company had simply made a mistake, so I emailed them to withdraw the claim. When I got no response, I decided to call them, but was again met with silence.
I just wasn’t getting anywhere at this point, so I decided to escalate the case to the Amazon UK CEO’s office. Soon after, Seller Performance contacted me to say that my listing had been reinstated and that I could now sell the product again.
But it didn’t end there because despite the renewal, Amazon couldn’t remove the black mark on my metrics because the infringement claim itself hadn’t been withdrawn Amazon Scam Destroys a Successful Business 2023.
Naturally, I was concerned because I knew it would have a negative impact on my performance metrics and could affect my sales. So I made another attempt to contact the company that filed the claim and also sent them a counter notice through my lawyer to try and get them to take it down Amazon Scam Destroys a Successful Business 2023.
Overall I thought it was all just a real mistake.
Two weeks later, on November 14th, Amazon alerted us to an alleged infringement of another trademark. It was a different product with three variants and we received notices for counterfeit or trademark policy violations for each of them.
Was it really a mistake? I don’t believe it was.
What was really strange about these claims was that they were made by a company that exclusively sells home and kitchen products. Let’s call them Acme Kitchen Products. The product in question was a small, pointy, rubber ball that flashes when you bounce it.
It was a generic, unbranded product, but the Amazon listings listed Acme Kitchen Products as the manufacturer. That was strange. I did some investigating and could not find the item in Acme’s range or any evidence that they trademarked it Amazon Scam Destroys a Successful Business 2023.
Every time I get a warning I go fight it. Other sellers may think it’s not worth the trouble, but if something isn’t right, then I think it needs to be fixed. However, when I attempted to contact the claimant, I realized that although the notice was filed on behalf of Acme, it was actually made by an agent acting for them.
I followed the procedure and contacted both the agency and the company and explained that if the claim was not withdrawn we would send a counter notice. Acme basically told me they had no idea what I was talking about and that it had nothing to do with them Amazon Scam Destroys a Successful Business 2023.
They continued this line even after I sent a counter notice so I was again forced to escalate matters to the Amazon UK CEO’s office. I then heard from the director of Acme who apologized and explained that they were on the trademark register and made the claim by mistake.
Was it really a mistake? I don’t believe it was. I thought the first alert I received was an honest mistake, but it looked like a deliberate attempt to damage my Amazon account and I became concerned.
Manipulation of lists
After some investigation, I found many other listings on Amazon where the same company – Acme Kitchen Products – listed their name as the manufacturer. They were also completely unrelated products that Acme neither manufactured nor sold. For example, they were listed (incorrectly) as the manufacturer of the best-selling products in five different toy categories.
Submitting trademark and copyright infringement complaints is a special type of internet marketing.
Around that time, I was also looking for the agent that Acme used to file intellectual property infringement claims. I discovered that this is not a law firm as one might expect, but an “internet marketing” agency. If you ask me, filing trademark and copyright infringement claims is a special type of internet marketing Amazon Scam Destroys a Successful Business 2023.
So why did they change manufacturers on Amazon product listings? I researched it further and put more pieces together. The same agency appeared to be systematically submitting changes to unrelated listings to drive traffic to Acme’s products. The product listings they were changing were best sellers, so they knew the traffic would be high, and they could use the manufacturer’s link to drive traffic from popular products that had nothing to do with them to their own site.
I tried to tell Amazon about it but they didn’t really care and told me I was already renewed and not to worry about it Amazon Scam Destroys a Successful Business 2023.
The negative feedback begins
I was able to cancel all infringement notices and was able to continue selling the affected products. My account was left with black spots because the outsourcers refused to withdraw their claims, which was frustrating but didn’t have a huge impact on sales. But just a few weeks later, a new campaign of dirty tricks began.
On November 30th, I started receiving negative feedback on my sales account. I could tell from experience that something harmful was going on. For starters, customers usually email us when they have a problem, rather than leaving feedback out of the blue. The second factor that rang the alarm was that the two pieces of feedback were left within just five minutes of each
Kishore Biyani’s firm on Friday opposed Amazon’s plea to stop Future Retail (FRL) from further alienating its stores, saying in the Supreme Court that it “wanted to destroy us and succeeded Amazon Scam Destroys a Successful Business 2023”.
FRL told a Bench headed by Chief Justice NV Ramana that “for Rs 1,400 crore (Amazon-Future deal), Amazon has destroyed a company worth Rs 26,000 crore. Amazon has been successful in what it set out to do… We are hanging on by a thread. Nobody wants to do business with us now.
When the landlord gives us an eviction notice, what can we do? said senior counsel Harish Salve, appearing for FRL. He was referring to the takeover of 835 Future stores by Reliance Retail, a subsidiary of Reliance Industries, for unpaid rent of Rs 3,000 crore.
He said FRL had lost control of more than 800 shops after the lease expired due to non-payment of rent and the landlords had launched eviction action. “If Reliance doesn’t expand our scheme, what will we do? We’re on oxygen now. No payments can be made from our accounts as they have been frozen due to NPA classification.”
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“Apart from this, we are running the remaining 374 stores on a wing and a prayer…” Salve added.
On the alleged collusion between FRL and subsidiary Reliance Industries, Amazon claimed that it is hard to believe that FRL has given up its 800 stores without any protest. “Future’s claim that it lacked money and could not pay rent for lease is a strategy and bogus… Terminated FRL contracts now in favor of Reliance is a deliberate and collusive act and it was incomprehensible that more than 830 stores could be let go. without trying to save them,” said lead lawyer Aspi Chinoy, who appeared for Amazon, adding that he had never seen a tenant give up ownership of a property so quickly without going to court Amazon Scam Destroys a Successful Business 2023.
Amazon said FRL transferred its businesses to Reliance after it gave an assurance to the SC on September 9, 2021 that its retail assets would continue to be vested in it pending a final order on merger sanctions from the National Company Law Tribunal.
Senior counsel Gopal Subramanium, who also appeared for Amazon, accused Future Group of committing a “fraud” and argued that the sudden transfer of assets was a “pretense” and a “smoke screen” and should not be done. Pending the arbitration, the property must remain with FRL, he said. “The annual accounts from December 2021 showed they had enough money to pay the rent. There is not even a shred of convincing evidence that they (the future group) are not doing well,” he said Amazon Scam Destroys a Successful Business 2023.
Meanwhile, FRL’s creditors asked the judge not to pass any order that would prejudice their rights. Senior counsel Rakesh Dwivedi, appearing for Bank of India, said no interim order should be issued to prevent the banks from taking any action.
The court was hearing Amazon’s request to prevent FRL from disposing of its retail assets pending an arbitration between the US company and the Future group. The case will continue to be heard on April 4, when the court is expected to conclude the proceedings Amazon Scam Destroys a Successful Business 2023.
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