True story, personally confirmed as being true.
1. Dude signs up for FBA account, sells over 1000 items in the first nine months, at $80 per item, making $30 per each sale
2. Amazon contacts him, asks him to become a vendor, asks dude to send them samples, dude complies
3. Amazon places an order for 12,500 items at $55, tells him that they're going to promote his item on the main amazon site, and to expect larger orders in future. Dude thinks "I'm going to be RICH!"
4. Dude mortgages his house and gets a bank loan to come up with the 12,500 item order on terms that delivery must be made within 60 days amazon has right to return unsold items if it sits in the Amazon warehouse for 180 days.
5. After 180 days, Amazon returns 11,900 items. Interestingly, the dude's top sellers are now starting to be promoted on Amazon's site. The return ruins dude's business. Somehow Amazon is still selling that item and promoting it, even though they returned almost all of dude's inventory.
6. Dude calls up Amazon asking how they are still selling his items when his entire stock was already returned, Amazon confirms that those items are still being sold, but won't confirm how they're coming up with the merchandise.
1. Dude signs up for FBA account, sells over 1000 items in the first nine months, at $80 per item, making $30 per each sale
2. Amazon contacts him, asks him to become a vendor, asks dude to send them samples, dude complies
3. Amazon places an order for 12,500 items at $55, tells him that they're going to promote his item on the main amazon site, and to expect larger orders in future. Dude thinks "I'm going to be RICH!"
4. Dude mortgages his house and gets a bank loan to come up with the 12,500 item order on terms that delivery must be made within 60 days amazon has right to return unsold items if it sits in the Amazon warehouse for 180 days.
5. After 180 days, Amazon returns 11,900 items. Interestingly, the dude's top sellers are now starting to be promoted on Amazon's site. The return ruins dude's business. Somehow Amazon is still selling that item and promoting it, even though they returned almost all of dude's inventory.
6. Dude calls up Amazon asking how they are still selling his items when his entire stock was already returned, Amazon confirms that those items are still being sold, but won't confirm how they're coming up with the merchandise.
