I don’t believe this is going to have much impact on the day-to-day but I understand the frustration. 3rd Party seller packs/ships order on forced 30± day credit. I like how we are able to borrow our own money for 1.5% fee.
We haven’t used “Business Pricing” before but we might start looking into it after this…
Really just how many business orders do have anyway.
I am willing to bet it is a very small percentage of all your orders on Amazon.
I read Amazon is paying the sellers same as usual it is Amazon that will acquire the net 30 terms.
About half of all our orders are from Business customers.
There is plenty of reason to worry. Just a single order for $5000 of gear not paid for 30 days is enough to put many small businesses in a cash flow pinch with their suppliers who are NOT going to wait 30 days. Simple as that. One order. Now imagine 10 orders…or more. Don’t know about you but we get plenty of higher qty orders that amount to $5000+. And Amazon is so gracious to allow you to get your money quicker for a 1.5% charge. Guess they forgot that the pure nature of price competition on Amazon pushes things to lower margins. Thus this 1.5% charge can easily result in another 10-30% drop in your overall profit margin.
This is not true. Amazon will pay you when they get paid, which could be at the end of the 30 day terms. HOWEVER…if the customer has not paid by day 37 Amazon will take the risk and pay the seller so there is no risk of us NOT getting paid.
You are incorrect, you will get paid once they pay. If you want your $ earlier you will have to fork up 1.5%.
Most of the business buyers I have had did not inspire confidence. I could easily believe they would buy more if they had credit.
On the other hand, I have sold to many businesses who did not register as business buyers who are identifiable and substantial businesses.
Years ago, the cost to a major corporation for issuing a PO and paying an invoice was over $25. That was when they began to allow their buyers to use company credit cards. I sure to cost is higher now.
Amazon is encouraging a lower tier of buyers. Appears that program has failed to meet its numbers, and this is an attempt to make a dumb idea work.
Fun fun, just got this in my purrr-sonal email here are the links:
(same as above OP gave, sorry i was reading too fast, here on forum and my email… lol)
Speak for yourself and the products you sell…
Business buyers are a large and growing segment of our orders and the products we specialize in.
If you are a book seller…I would guess not so much…
I sell 1500 items a month and have business pricing on them all, i get maybe 1 or two business orders, a month. that is the joke here!
I don’t want to say how its done on this forum to give people the idea if they haven’t thought of it already… but this only provides one more way for buyers to scam sellers. Happened to me on a small scale last Christmas. Offering terms?! Will only make it worse. I am very upset that we can’t opt out. I just wrote my complaint to B2B seller support.
I need to calm down… I really am upset. I don’t think this is a good idea at all.
I enjoy the additional exposure and sales to the business consumer segment. Not sure if I will like more than 30 days to get paid.
We offer many of our customers outside of Amazon terms with discounts for fast payment. 3% net 10, 2 % net 15, 1% 20 days… Will Amazon adopt our normal course of action when opening terms with business clients? We do bank and credit checks, ask for a min of 2 trade references etc. before passing Net terms to anyone.
Will Amazon pursue collection of unpaid invoices for us? I’ve lost 50 cents on the dollar hiring agencies to go after deadbeats and failed businesses…
Well, probably not what you’re thinking but…
I think it’ll be kinda neat to sell $5000 item and get nicked for a return and be negative in the payments, before actually ever getting paid in the first place…
Somehow… it sounds like that’s just cutting out the middle-man.
(i mean amazon’s always looking to make the it a smoother experience for sellers… now they can just charge a fee, and change our inventory from new to customer damaged all in one swell foop!)
Have you all considered what happens when the business buyer (aka reseller) realizes they can’t move your inventory on another site and they make a massive return at 29 days? Personally I get many orders from “business buyers” mostly people buying our products FBA and reselling to people. We’ve had massive abuse where customers kept buying large quantities thru FBA then returning large amounts a few weeks later. Either they couldn’t sell them or were simply buying each item and only keeping their best sellers. I complained but only weeks after I caught on, (amazon didn’t flag anything) by that time they purchased and returned countless times. This has happened a few times, some worse than others. If you’re an FBA seller and they buy up half your inventory and then you rush to fill it back up only to have a huge portion returned weeks later you will see just how much fun it can be.
Also as far as the payments, I’m not sure how you all operate your business but withholding funds for shipped inventory for 37, possibly even ~56 days depending on where you are on your 2 week disbursement cycle is massively inconvenient and simply absurd to not offer the option to opt-out.
Look I’m fine with offering this feature, but not giving us the ability to opt out is crazy.
Wow what a money grab by Amazon. There’s absolutely NO reason for Amazon not to pay sellers as normal (ie immediately once shipped) for invoiced orders. If they are taking 100% of the risk anyway, why wait? The answer is easy - the 1.5%. They found a way to make money from desperate sellers that need their cash now. Someone sat at Amazon and said, “Hey, here’s a way we can make more money … we can charge sellers for wanting to get their payments faster.”
Amazon needs to seriously re-think this. It hurts the smallest sellers - the ones who can’t wait for that invoiced payment. To charge for faster payments is simply a ridiculous money grab by Amazon. This is very disappointing.
The roof, the roof, the roof is on fire…again!
No… I hadn’t thought of that! I guess there will be many creative ways 3rd Party sellers are going to get hurt with this program.