Meet the team working to support their customers during this challenging time. UK Sellers Amid Concerns of Business Collapsing.
Walk-outs by UK Amazon workers in protest of a ‘pathetic’ 35p-per-hour pay rise have now spread to four sites, GMB regional organizer Steve Garelick said. The impromptu action has affected customer shipments. UK Sellers Amid Concerns of Business Collapsing.
Etsy’s Business Collapsing
Etsy, the online marketplace that allows users to set up shops to sell bespoke crafts and goods not found in the High Street, warned customers last week that they might see delays in their scheduled payments.
The company told customers that it would be using other payment partners to process these deposits, but they might not get the funds back in the same amount or format as they had before SVB’s collapse. This is not the first time that Etsy has delayed payments to its users.
In May, the company triggered outrage from sellers when it announced that it would withhold 75% of their sales revenue until buyers had received their goods and confirmed receipt.
Amazon’s Delay in Payments
Amazon partially relented after a row over new rules that would have impacted thousands of marketplace sellers in the UK and continental Europe.
Fortunately, after the UK government minister wrote to Amazon about the issue, the company announced it was delaying the rule change until January. While the move provides some relief, it highlights that small sellers must have contingency plans in place to ensure their long-term success and mitigate risks posed by major e-commerce platforms.
If you’re struggling to stay profitable during the COVID-19 pandemic, consider using FeedbackWhiz’s Profit and Loss Tracker to monitor your margins and costs. The tool helps you identify and manage the most important aspects of your business, including Amazon fees and taxes like VAT.
Etsy’s Second Buy Box
Thousands of small business owners have been complaining that online marketplaces such as Etsy and Amazon are withholding payments for sales, leaving them in dire financial trouble. According to Campbell, a UK government minister has written to the two companies asking how they plan to support small sellers that are facing payment delays.
This week, both Etsy and Amazon announced that they will be introducing the second buy box, a backup option when the primary buy box is unavailable. This can happen for a variety of reasons, such as the primary seller running out of stock or not meeting Amazon’s performance standards.
Winning the second buy box will be a challenging task, but brands can increase their visibility by having fast shipping times, high seller ratings, a low order defect rate, and competitive pricing. By optimizing their listings and staying updated on any changes to the feature, brands can take advantage of this new opportunity.
Amazon’s New Inventory Reconciliation Report
This is why the company has bought robotics companies and runs competitions to help robots better sort items for shipping.
Likewise, the company is working to increase its speed of delivery by moving goods from warehouses closer to customers. This is why it has invested in developing autonomous drones that can fly smaller items to customers more quickly.
This partial concession from Amazon provides some relief for affected sellers, but it also highlights the need for e-commerce businesses to diversify and take steps to safeguard their business against policy changes by major platforms. This may include exploring alternative marketplaces or building a direct customer base on their own e-commerce website. This way, they can mitigate risk and ensure long-term sustainability and success. They can also prepare for the UK’s new VAT rules that will affect how they do business on Amazon needs read more hear…..
