Amazon has implemented a policy for European sellers where they have decided to wait to pay the sellers until seven days after their product delivery. This initiative has ensured the company has adequate funds, just in case the customer requests a return or claim. About 15% of traders, who got associated with the platform before 2016, were only affected by the policy on 3 August. Additionally, many traders are saying that this policy can impose a threat to their business.
Mario Katz, one of the Amazon traders, who’s responsible for selling CDs and vinyl in the UK, told Sky News how the whole policy is leading “into bankruptcy for all the small businesses and companies”. The company is holding about £5,000 of its total earnings from the platforms. He further said how the payment delay is making it tough for him to pay bills to the suppliers. “This is unacceptable”, he added.
Mario also told the BBC that he’s shaken and panicked by the holdings. He also fears whether he will be able to continue trading or not. Meanwhile, other sellers, who got affected by the policy, wrote to their MPs for help.
Amazon, in defense, has said (according to the BBC) that they already notified the sellers about the policy three months in advance. Sellers, on the other hand, have stated how the email wasn’t clear to them. Some even highlighted the fact that their emails went into the junk folder.
Mario also told the BBC how he’s losing his company due to the money freeze. “I’ve never had a problem with my payments before. How can I feed my family, pay my bills?” he added.
He also showed complaints of several sellers on the Amazon Sellers forum to the BBC, whose payments have been detained.
Navkiran Dhaliwal is a seasoned content writer with 10+ years of experience. When she's not writing, she can be found cooking up a storm or spending time with her dog, Rain.