Amazon sellers seek more clout with Merchants Guild
The millions of merchants who sell products on Amazon.com Inc. have long craved more leverage over their powerful benefactor. Now some are creating a trade association in the hopes that a unified voice will force Amazon to take them more seriously.
Organizers began pitching fellow merchants on the Online Merchants Guild last week at the Prosper Show, an annual Las Vegas conference that drew 1,900 Amazon sellers.
The group is only just getting started but has big ambitions, which include negotiating better terms with Amazon, pushing the company to respond more effectively to sellers’ complaints and lobbying government officials to make sure merchants’ viewpoints are being heard.
Chris McCabe, a former Amazon employee and owner of the consulting firm Ecommercechris.com is organizing the guild with Paul Rafelson, a Pace University law professor. They plan to promote the group at Amazon merchant events in New York and Seattle next month. It’s early, and only about 100 merchants have expressed interest in joining the association, which levies an annual fee of between $100 and $25,000, depending on the size of the business.
Merchants have mulled such a group for years but now have an issue to rally around.
In recent months, states have been warning that they plan to levy back taxes on years worth of past sales. Merchants fear they’ll be easier targets than Amazon and hope a guild will give them lobbying clout.
“There has not been one single issue to galvanize Amazon sellers like the sales tax issue,” McCabe says.
Merchants’ complaints about Amazon are numerous and long-standing. With 300 million customers around the globe, including its big-spending Prime subscribers, the world’s biggest online retailer wields tremendous leverage over the people who keep its web store stocked with an abundance of goods.
Amazon can dictate terms and fees with minimal input from sellers, who have to accept the take-it-or-leave-it approach because there are millions of merchants and only one Amazon. Merchants love it when the orders are rolling in. They hate it when there’s a problem and Amazon doesn’t seem to care nearly as much as they do because it has plenty of other merchants selling the same things.
Even with an organized group, merchants could find it difficult to negotiate with Amazon, which typically resists collective bargaining.