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Amazon E-commerce

Amazon Grappling With Third-Party Seller Scams

Amazon has fired multiple employees the company suspected gave third-party sellers  internal information that they could use to boost their sales, according to The Wall Street Journal. The episode signals how Amazon is grappling with problems related to its fast-growing marketplace business, where outside merchants sell goods on Amazon. More than half of the products sold on Amazon last year came from these third-party sellers rather than the ecommerce giant itself.

Third-party merchants claim that competitors on the platform are marking their products as counterfeit or flagging them for infringing trademarks to temporarily suspend them from using the site. Amazon will need to fix his kind of bad behavior as its third-party business grows.

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