eBay seller convicted, Amazon raising FBA and bans hoverboards

A summary of the most important 3P Third Party Marketplace news for the week ending 13 December 2015.
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Dec

Third Party Marketplace News – eBay seller convicted, Amazon raising FBA and bans hoverboards

Every week, Hendrik Laubscher will be providing third party sellers with a selection of news stories that they need to be aware of. As a Prosper Show participant we strive to ensure that you can focus on your business while we handle all the industry news.

This week contained some interesting news and some of it effects 2016, a seller and a specific category. An eBay seller was convicted on mail order fraud after sending items to buyers for a Penny. Amazon has also informed sellers that they plan to increase Fulfillment by Amazon (FBA) costs. Lastly Amazon has also banned any hoverboards from being sold on their platform due to safety concerns.

An eBay seller figured out how to send packages to his customers for a penny, but now he is paying the price. eBay seller Jack Zeljko Pasic pleaded guilty to defrauding the US Postal Service out of postage due on over 9,000 packages shipped from San Diego to eBay customers throughout the United States between April 2009 and October 2010. Sellers are reminded that they need to follow the law and good business practices. Read more here.

Amazon is raising fees next years for US sellers who use its Fulfillment By Amazon service, citing rising labor and transportation costs. Some of the rate hikes depend on whether the product is Media, non-Media, or Clothing. Almost all rate increases are tied to the size of the product. Amazon informed sellers that use the FBA product of an increase in costs. The reality is that FedEx, UPS and USPS are all increasing their fees starting in January 2016. Sellers need to check their email to see and be attentive to their category requirements. Read more here.

Good luck finding a hoverboard to purchase on Amazon, but it’s not for the reason you might expect. Leading hoverboard-maker Swagway said Amazon is requesting companies manufacturing the popular devices to prove they are safe to use and has started to pull some hoverboards from its site. Several models, including ones made by Swagway, no longer appear on Amazon’s website, although some from smaller producers are still available. If you sell hoverboards it is imperative to check that they are save and can be sold on your marketplace of choice. Read more here.