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“Amazon is holding over 4.2M dollars, suffocating our business” (sellercentral.amazon.com)

711 points by hippich · 2352 days ago · 194 comments on HN

Article summary

An Amazon seller claims that Amazon is holding over $4.2 million of their funds due to a 'velocity review' triggered by an increase in Merchant Fulfilled orders. The seller has been selling on Amazon since 2013 with outstanding metrics and averages over $1 million in monthly sales. Despite sending multiple emails to Amazon, the seller has not received any help or disbursal of their funds. This has put their business at risk of not being able to pay employees or continue operating.

Main themes

  • Amazon seller issues
  • velocity review
  • funds withholding
  • monopoly power
  • lack of accountability
  • automated systems
  • human support
  • fraud prevention
  • seller vulnerability
  • platform dependence
  • diversification
  • nuanced approaches
  • account reviews
  • financial harm
  • business disruption
  • regulatory environment

What commenters say

  • Amazon's automated systems are too aggressive in flagging accounts for review, causing harm to legitimate businesses.
  • The company's lack of human support and slow response times exacerbate the problem, making it difficult for sellers to resolve issues.
  • Amazon's policies are designed to protect itself from fraud, but they can also unfairly target legitimate sellers and cause financial harm.
  • Some commenters believe that Amazon's actions are a result of its monopoly power and lack of accountability.
  • Others argue that the seller's business model and reliance on Amazon's platform make them vulnerable to such disruptions.
  • There are calls for Amazon to implement more nuanced and human-centered approaches to handling suspected fraud and account reviews.
  • The incident highlights the need for sellers to diversify their sales channels and not rely too heavily on a single platform like Amazon.
  • Some commenters think that Amazon's actions are not justified and that the company should release some of the funds to allow the seller to continue operating while the review is ongoing.