Ralph Lauren Corp, Hugo Boss AG and Guess Inc have all protested recently about unauthorized sellers. Others, such as Swiss Gourmet, distributor of Swiss Diamond cookware in the Americas, have threatened to pull out unless Amazon limits discounting and cracks down on unauthorized third-party sellers. Myers said Amazon told Wüsthof to crack down on these third-party sellers itself. When Wüsthof complained, Amazon cited competition from third-party sellers, according to Todd Myers, Wüsthof’s vice president of sales in the United States. Some brands, including German chef knife maker Wüsthof, said they stopped selling goods on Amazon after the company priced some products below the minimum advertised price. This platform for independent sellers is different from Amazon’s traditional online retail business, known as 1P (first party), where the company buys products from manufacturers at wholesale prices and sells them online itself. The 3P marketplace’s growth prospects will be front and centre when Amazon reports results on Thursday. That business accounted for 40 percent of Amazon’s second-quarter unit sales and has provided a big boost to revenue and margin growth. Amazon declined to comment.Īmazon has little incentive to discipline sellers because it takes a cut of third-party sales through its lucrative 3P (third party) marketplace, these executives say. The brands want Amazon to help them weed out such sellers, but the online retailer prefers not to get involved, according to industry executives. The problem on Amazon is that while the goods are authentic, sellers often get them from leaks in supply chains, and then sell the products online at below the minimum advertised price set by the label. On eBay, the brands mostly complained about counterfeit products sold by third parties. The sellers offer online shoppers goods ranging from Guess watches to LG televisions and Adidas sportswear at low prices, upsetting Amazon suppliers who want the world’s largest online retailer to crack down on unauthorized discounting. A box from is pictured on the porch of a house in Golden, Colorado in this Jfile photograph.
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