JD'S Memes
- Thread starter Esco
- Start date
sndsamplr
Well-known member
- Apr 29, 2021
- 828
- 1,255
sndsamplr
Well-known member
- Apr 29, 2021
- 828
- 1,255
sndsamplr
Well-known member
- Apr 29, 2021
- 828
- 1,255
sndsamplr
Well-known member
- Apr 29, 2021
- 828
- 1,255
sndsamplr
Well-known member
- Apr 29, 2021
- 828
- 1,255
sndsamplr
Well-known member
- Apr 29, 2021
- 828
- 1,255
- Thread starter
- #6,691
Esco
Well-known member
- May 4, 2021
- 11,652
- 6,849
Washington state’s Office of the Attorney General has announced that Amazon will be forced to shut down its Sold by Amazon (SBA) program. The decree comes nearly two years after Attorney General Bob Ferguson launched an antitrust investigation into Amazon’s use of the program.
SBA didn’t exactly enjoy a long run. Started in 2018, the program supposedly helped eligible third-party sellers by automatically adjusting those sellers’ prices in accordance with real-time competition and demand. If a participating seller’s product was normally listed for $20 but Amazon’s algorithms found that the same product was selling for $15 on other websites, Amazon would lower the price to help the product sell. Amazon would then issue the seller their minimum gross proceed (MGP) to ensure the seller still received a payout that would ultimately support their business.
Proponents of SBA thought the program would please customers and sellers alike, with savings for the former and increased opportunity to fulfill a potential sale for the latter. After all, the ability for sellers to pre-select an MGP would prevent them from facing significant financial loss. Skeptics, however, worried the program would be wielded as a loss leader to protect Amazon’s status as a default option for shoppers. Washington Attorney General Bob Ferguson asserts this is exactly what happened.
SBA didn’t exactly enjoy a long run. Started in 2018, the program supposedly helped eligible third-party sellers by automatically adjusting those sellers’ prices in accordance with real-time competition and demand. If a participating seller’s product was normally listed for $20 but Amazon’s algorithms found that the same product was selling for $15 on other websites, Amazon would lower the price to help the product sell. Amazon would then issue the seller their minimum gross proceed (MGP) to ensure the seller still received a payout that would ultimately support their business.
Proponents of SBA thought the program would please customers and sellers alike, with savings for the former and increased opportunity to fulfill a potential sale for the latter. After all, the ability for sellers to pre-select an MGP would prevent them from facing significant financial loss. Skeptics, however, worried the program would be wielded as a loss leader to protect Amazon’s status as a default option for shoppers. Washington Attorney General Bob Ferguson asserts this is exactly what happened.
