Amazon forces sellers to divulge COGS, won't reimburse other costs
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Amazon forces sellers to divulge COGS, won't reimburse other costs
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Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#2Amazon was previously reimbursing other costs?
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#3“Your margin is my opportunity” - Bezos
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#4Title is misleading; this only applies to items that are lost/damaged prior to being sold.
“For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees”
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#5I had one of the largest retailers to reach out to my company with an interesting problem. Given a weight and ingredients of packaged food they wanted to predict the content of each ingredient so that they could calculate the suppliers COGS so that they could use it as negotiating leverage against the suppliers...
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#6Dance with the devil...
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#7Amazon was previously reimbursing other costs?
Previously Amazon would pay you as if it were sold normally. So you would still get your profit. Now they want reimburse just the cost to make it, leaving the seller with 0 profit on damaged items.
They used to have a fairly high loss/damage rate. Lately it seems rare, for what it's worth
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#8Title is misleading; this only applies to items that are lost/damaged prior to being sold. “For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees”
Even so, it is a fairly hostile policy. If Amazon looses or destroys an item under their control, I’d expect them to cover the cost of getting a new item “in inventory”. Car insurance is often for “replacement value”, right?
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#9Title is misleading; this only applies to items that are lost/damaged prior to being sold. “For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees”
It’s not misleading in the sense that they are requiring you to disclose your margins and proprietary information to prove those margins, when they are your competitor. Most sellers are not selling unique items and the ones they would probably compete against are selling the same item over and over again, so they can clearly use this information to determine which sellers they can squeeze the most easily, which categories they should run their own competing product in, demand your prove it so that they can identify your suppliers, by just using information from a few transactions where they decide to damage or lose your product.
Re: Amazon forces sellers to divulge COGS, won't reimburse other costs
#10Amazon was previously reimbursing other costs?
If I understand correctly, if Amazon lost your product before a sale, they reimbursed you the sale price. Now they will only reimburse you the manufacturing cost.