Comment by gamblor956
7 years ago
The issue isn't reselling branded products.
The issue is selling fake products as a branded products. Amazon makes this easy to do by commingling inventory and not matching/tracking sellers to inventory items.
This fact by itself would probably make Amazon liable for product liability claims in any court in the US, it's traditional CDA liability sheild notwithstanding.
EDIT: Products liability law is complicated, but generally even if Amazon wouldn't be treated as a seller, they could still be held liable for their negligence in providing the wrong/defective item out of their (commingled) inventory. Amazon doesn't match sellers to inventory items so they have literally no way to defend themselves from such a suit especially if the seller can show that they provide products straight from the manufacturer but Amazon commingled with other sellers' inventory. (I'm aware of several such suits that were almost immediately settled by Amazon with NDAs attached.)
> Amazon makes this easy to do by commingling inventory and not matching/tracking sellers to inventory items.
That is not correct. Amazon's seller help pages and Amazon spokesperson comment on e.g. this FT Alphaville article https://outline.com/4R7fp6 say that Amazon tracks the original supplier:
> The system is purposefully designed so that similar products are not placed next to or near each other, and Amazon can also track the original seller of each unit.
I.e. commingling only means that any sellers' inventory can be used for fulfillment, not that the inventory is physically commingled.
I think thats pedantic. If I can't demand the seller I want, from my point of view it is commingled.
Sure, I completely agree. That's why it's called commingling.
Amazon "says" they can track the original supplier.
In practice, they clearly don't. I've had a client that was the only manufacturer of a product receive fake versions of their own product that was part of Amazon's commingled inventory. This happened last year.
Also, unless Amazon removes tags prior to delivery, there is no mechanism on many items that would allow them to track goods short of maintaining physical separation, which it is abundantly clear that they do not.
If this physical separation exists, it is useful only to Amazon if buyers can still be fulfilled by any of the sellers.
When evidence builds for fake product, Amazon can halt use of a particular seller's inventory...but prior to that you might get a fake, regardless of the seller's reputation.