Are amazon, etsy, and ebay limiting sellers?

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I recently came upon a youtube video about a marketer saying that these companies place secret limits on how much you can sell or grow your business. I'm not sure if I can put up a link, but basically they do this to have more control around the quality of products they sell. Only a few chosen ones are encouraged and have free reign to grow their business as they please.

It makes sense, especially since I have been reading about amazon and etsy accounts being shut down. Anyone care to share any insight on this? I ask because I have a lot of funding available to go into private labeling..and I'm just wondering, realistically, what type of pitfalls and headaches I will have to deal with...
#amazon #ebay #etsy #limiting #sellers
  • Profile picture of the author agmccall
    While I can not comment on Ebay or Etsy. Amazon does not just cancel accounts for no reason. You can google amazon seller forums and go there and read the posts. There are many posts about people having their accounts suspended, and the more you look into it the more you realize it is because they violated the terms of service.

    Amazon takes their Terms of Service seriously, if you violate you will probably be gone with no hope of coming back. One of the things amazon does, especially for new merchant fulfilled vendors is a velocity review. If you are a new seller and fulfilling your own orders and have a sudden surge in business they might do a velocity review. What this is, is they put your account on hold temporarily and make sure you can fulfill all your orders in the time specified, which is shipped in 48 hours. They have come to realize that many sellers are using dropshippers and just uploading data feeds and not knowing if the dropshipper actually has the product or not.

    Amazon is a great way to build your own ecommerce business. But, you have to realize it is Amazons Business, you are just a vendor and you need to follow their rules to the letter

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  • Profile picture of the author Ryan David
    Originally Posted by bstalling48 View Post

    I recently came upon a youtube video about a marketer saying that these companies place secret limits on how much you can sell or grow your business. I'm not sure if I can put up a link, but basically they do this to have more control around the quality of products they sell. Only a few chosen ones are encouraged and have free reign to grow their business as they please.

    It makes sense, especially since I have been reading about amazon and etsy accounts being shut down. Anyone care to share any insight on this? I ask because I have a lot of funding available to go into private labeling..and I'm just wondering, realistically, what type of pitfalls and headaches I will have to deal with...
    I don't know if it's really a "secret limit" like the marketer is saying. In fact, I think they are pretty open about the limits on new accounts. Amazon calls them "Velocity reviews" and it's just to make sure sellers (and Amazon) don't get scammed by a seller who all the sudden moves a lot of merchandise. Ebay basically does the same thing and it's right there when you log into your account.

    Amazon FBA has limits on how much you can send in to their warehouses until you prove that the product will move. If it does move, they gradually up your limit.

    I think the "guru" who is making these videos doesn't know what he is talking about. If you are a consistent seller with good metrics, then you won't have any problems. The goal isn't to limit sellers ability to sell, it's to limit exposure to potential scammers.
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    • Profile picture of the author kungfubob
      We've been selling on Amazon for 2 years and grossing a little over 300K$ / year. I know sellers who do much more than this.

      Also, if you look at eBay sellers, you'll easily find sellers that have 7 digit grossing businesses there.

      So, there might be some hidden secret algorithm that limits sellers, but I don't know that it matters.

      That being said, not relying solely on Amazon or eBay is a smart way to protect your business long term. You get a direct relationship with your customers and you are less affected by policy or fee changes from the online marketplaces.
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  • Profile picture of the author JosephI
    Amazon has closed categories which means that you cant sell that type of merchandise until they approve you and it may be years or never. They state openly that its so the particular markets don't get saturated by sellers offering the same merchandise.

    Etsy products need to be made, or hand made, by the person or business selling it. That gets much abuse and those accounts are kicked out.

    Don't know of any restrictions by eBay.
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    • Profile picture of the author bstalling48
      Originally Posted by JosephI View Post

      Amazon has closed categories which means that you cant sell that type of merchandise until they approve you and it may be years or never. They state openly that its so the particular markets don't get saturated by sellers offering the same merchandise.

      Etsy products need to be made, or hand made, by the person or business selling it. That gets much abuse and those accounts are kicked out.

      Don't know of any restrictions by eBay.
      What categories have they closed?

      I see them here...http://www.amazon.com/gp/help/custom...odeId=14113001
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  • Profile picture of the author JosephI
    Those are it. They may have different requirements for each.
    It was a year and a half before they responded and accepted a
    friend to one of those categories after he applied.
    Cheers.
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  • Profile picture of the author Gaura Klausner
    I think there are people who are willing to make conspiracy theories over nothing...
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  • Profile picture of the author badut jenaka
    I don't really know about amazon or etsy as I'm not using them for selling. But ebay limited selling quantity for new sellers. It's 10 products or $100 a month.
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  • Profile picture of the author Monkmoney
    Ebay deffinately.limits sellers, as it was leaked that they put hidden sales limits..the cat finally got out of the bag..they limit how much you make monetary wise

    This is not a conspiracy theory this is now fact

    This limit is not the same limit as posting limits..this limit is placed on how much money you make for example if you made 400 one week and your limit is 400..its IMPOSSIBLE to make more that week..

    Whats a mystery is how this limit is dictated

    Although I been with ebay a long time..I.dont have much regard for their practices
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  • Profile picture of the author NewParadigm
    what would be the reasoning behind them giving up revenue?
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    • Profile picture of the author JosephI
      Originally Posted by NewParadigm View Post

      what would be the reasoning behind them giving up revenue?
      You can't lose control of your company for the sake of more revenue which you will lose in time when the saturation causes price wars, among tons of other issues.

      Would not be very pretty to watch or be in it.
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  • Profile picture of the author Monkmoney
    Market control..funneling sales to their preffered sellers and retailers

    Forcing small to medium sellers to go big or stagnate..meaning pump out those tens of thousands of listings to grow more..which means more fees for ebay

    It seems counter productive, but when they ate dealing with millions of sellers the ability to shift money and sales around to.different categories and destinations is just to sweet to pass up for them

    Ebay is a bain capitol play toy so regard for the little guys success is probably not.high on.their list
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  • It's not that they want market control on the eBay limits. It's to protect the buyers, and ultimately have a higher customer satisfaction rate.

    New sellers tend to be horrible. They don't process shipments, communicate with buyers, nor have decent descriptions. Not all, but there is a correlation.

    eBay places these limits until a seller can 'prove' they're pretty good - or at least decent.

    Limits won't be raised until certain minimum requirements are met.

    Many people, though, have a misconception that eBay is always out to 'screw the sellers.' No, they're just looking to promote the best ones - which can be anyone. If eBay had such a strangle-hold on buyers, then sellers wouldn't be around to sell anything! The more friendly eBay is to buyers, the better it is for sellers. You sell, market, and retain more, and life is good for everyone - except those that are willing to give excellent products/service.
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  • Profile picture of the author Monkmoney
    You are incorrect, it was leaked and confirmed that ebay limits..or throttles..the amount you are allowed to make monetary wise

    As I said, this isnt about listing limits or category limits..which is plain for you to see your limits..everything you said is regarding this and you are right in everything you say there

    But

    This is a hidden limit to your sales celing, so you might have a limit of 500, or 1000 dollars a week which means you cant make more than that

    This has been.confirmed many places after an employee leaked it on the ebay forums

    So, indeed, its a shameful practice by ebay
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  • Profile picture of the author itsajeepshirt
    We currently use http://stitchlabs.com to manage inventory across all our channels. It was the cheapest option we found that included support for Etsy and ShipStation.
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  • Profile picture of the author AadhyaMehra
    Banned
    I don't think so. Its all rumor.
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