Even before the COVID-19 pandemic there were plenty of people asking dumb questions and posting ridiculous comments in Amazon, but since Doug Ford made the price gauging comments, and unemployment and isolation rate has drastically increased and most people are bored at home, harassment and threats towards Online sellers, and especially Amazon independent sellers has increased drastically.
Even though some sound real dumb from the point of Buyers having no clue how Amazon works, others sound more worrisome to the point of threats and harassment.
We have excluded some information to protect the identity of the parties involved in the discussions and postings. B is for Buyer and S for Seller
B – Why is your product 10x more expensive than all other stores
S – Can you specify which product you’re referring to as your message has no reference to the item, and secondly which stores?
B – Yes …. You are asking $129.00 for 12 32 oz containers. This would only cost $40 in a store.
S – Than we suggest you buy it from the ‘store’, since it’s much cheaper for you. $40 x 10 doesn’t equal $129.00. Does the ‘store’ delivers the item at you or you go and buy it?
B – $3 per 32 oz unit x 12 units (as per your case) = $36. You are charging $129 for the same product. That is a $93 markup. Is this your regular price or a special price due to covid situation?’
The buyer avoids to mention which stores for reference and simply made up a price that wanted and own formula in mind.
Yet if it’s so much cheaper why is this buyer not going to the imaginary store and buy it, but harassing a single seller out of many sellers in Amazon?
The Seller in this case did ask the most important question that buyers should consider when buying online.
“Does the “store” delivers to you or you go and buy it?”
Logistics are a major role in the price of an item. Items don’t have legs to make their way to the customer’s destination. The longer the distance the higher the price. Weight of items is also a contribution in the price. The heavier the item, the highest is the price of delivery.
Clearly the buyer is looking for the item to be delivered at his front door but is not considering what we have mentioned in other articles, the fees, logistics and other associated expenses with the price of an item.
Another Buyer comments
The product I am writing about is “…”. At the most expensive grocery store in Toronto this items sells for $9.99. You are selling it for 4 times more which is really disgusting. I do not believe you have a 89 % positive rating either. Maybe you know during this pandemic people can’t visit relatives they might want to send someone an … and you are jacking up the price so ridiculously high. I cancelled my amazon prime membership because I am sick of seeing people like you gouging customers during a pandemic. Amazon should shut you down. I hope you and your whole company go to hell.
Clearly no one seem to mind the fees that they have to pay on Amazon to get a membership or what independent sellers have to pay to Amazon for transaction and monthly fee. Clearly Buyers don’t want to take the risk of going out and purchasing the item but they don’t mind if Sellers take the risks and do the work.
This other example is more than self explanatory from the Seller
B -Order has not shipped yet, and is 4 times the cost. Would like to cancel.
S – Orders don’t have wings to fly to your destination. They have costs, labor, packaging, logistics, and Amazon fees. If you think it’s expensive you shouldn’t order it. We’re cancelling the order as per your request.
Since every buyer seems to know the costs lets make a simple calculation on an item that supposedly costs $40.00 in a store.
Seller buys it 40 + labour $14/hour minimum wage to buy the item and packaging + $15 including storage, fuel, packaging minimum + shipping from Canada Post, cost varies from size weight and destination – let’s estimate it at approximately $25 for an item that weights almost 12 kg, + $19.5 Amazon fee of a $129.99 transaction+ $29.99 monthly seller’s fee.
40+14+15+25+19.5=$113.5 out of $129.99 without adding the Amazon monthly fees or any other expenses.
So at best, the profit of the Seller in this scenario is $16.49.
That is $3 lower from the Amazon Fee.