[Crew Review] Massive cuts in restock limits

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Amazon Sellers, (Un)limited

Prime Day is fast approaching, but many Amazon sellers can’t even send in more inventory to FBA warehouses. Major cuts to restock limits overnight that went as high as 85% were seen.

What’s causing this?

Match Made in Ecommerce Heaven

Bill and Melinda Gates may have parted ways, but there’s another famous couple on the rise.

Google has partnered with Shopify, a move that unites the most popular search engine and one of the world’s leading ecommerce platforms.

The plan is to use an AI-powered Shopping Graph whose job is to collect data from multiple sites. This makes it possible for users to connect with sellers when they find something cute in Google Photos. It also allows sellers to showcase their products on Google Maps, Search, and Youtube.

These ads will be free, but the search engine hopes that it will attract more users. This can ultimately benefit Google Ads, whose share in the US market dropped in 2020.

Will this partnership be enough to go against Amazon?

Abuse of Dominance?

Amazon is the king of ecommerce. And the throne naturally comes with power, one that can be abused if not kept in check. DC Attorney General Karl Racine knows this too well, and he’s more than willing to question Amazon’s dominance.

Citing Amazon’s Fair Pricing Policy, Racine points out that there are provisions that discourage competition and punish sellers that offer their products on other platforms for lower prices.

If you’ve been an Amazon seller for a while now, you know that price is an important factor in determining your ranking. After all, Uncle Jeff just wants what’s best for his customers.

There was no allegation in the complaint that Amazon violated federal antitrust laws, but it might serve as a stepping stone to a federal lawsuit.

Fake Reviews, Real Consequences

When brands like Aukey and Mpow were taken down by Amazon weeks ago, we all thought that it was Amazon’s way of punishing sellers who use fake reviews.

But after a little digging by Recode, it was found that at least one of the bans was actually due to pressure from the Federal Trade Commission.

Communications between Amazon employees also revealed that the platform is not treating sellers the same way. While some are easily banned for using fake reviews, others would require a special approval before they can be suspended.

So fake reviews do have real consequences. But it will take a government agency stepping in to ensure that.