U.S. News
Amazon Profits Soar as Seller Loses $5M Over Unjust Account Deactivation
By Alison Plaut · January 2, 2025
The second largest employer in the US continues to face challenges with worker strikes over pay and compensation, while also struggling to distinguish legitimate sellers from potential fraud.
These conflicts underscore broader issues of worker classification, labor compensation, and opportunity in the US economy that extend far beyond Amazon's woes. Photo by Reanimated Man X from Pexels
Caught in the Crossfire: Legitimate Sellers Face Account Freezes
Beyond strikes, seller bans have been making waves, with blocked sellers offering legitimate goods speaking out.Brent Wynne (@BrentWynne), the owner and operator of BTW Global, LLC, an Inc. 5000 company, posted on X:"
We’ve submitted all required documentation directly from our suppliers—National Book Network (NBN), Hachette Book Group, Simon & Schuster, and Independent Publishers Group (IPG)—proving the authenticity of our products. These are the rights holders themselves, and they’re ready to confirm our invoices."
Wynne continues,"Despite this, Amazon has failed to act. This inaction has forced us to:
- Furlough 80% of our staff, spanning three countries.
- Suffer $5,000,000 in losses, with devastating impacts on our business and employees."
The net result of these actions can have devastating consequences on workers, their families, and the larger economy.
Wynne concludes, "BTW Global, LLC has been a trusted partner of Amazon for 11 years, operating with integrity and full compliance with your (Amazon's) policies. Yet, we are being sidelined during the most critical sales period of the year, jeopardizing the livelihoods of our team and our company’s future." Photo by Jun from Getty Images
Balancing Security and Seller Rights
Another X user, Esty Blas (@estyblas), shared similar concerns, stating:"Amazon has wrongfully suspended my account BRANDED DIRECT after years of successfully selling on their platform. They claimed that my inventory is unsuitable, which I have been informed often implies suspicion of stolen goods. I have provided extensive documentation to prove that my inventory is legitimate, and I firmly deny any involvement in illegal or deceptive activities."
Meanwhile, a cottage industry of experts helping sellers regain their accounts with Amazon has cropped up. Photo by Ouda Images
Record Profits vs. Worker Wallets: The Pay Debate
Amazon's Q3 net income was $15.3 billion, up 55% from 2023. However, many employees claim they didn’t receive their fair share of that bounty. Delivery drivers have been particularly vocal about the inequity.In September, Amazon announced that the average total compensation package for fulfillment and transportation employees in the US is over $29 per hour. That is substantially higher than the minimum wage, but at around $58,000 annually, it is less than the national median wage.
And it wasn't enough to stop strikes led by Amazon's delivery driver union, the Teamsters. The Teamsters claim to represent 7,000 Amazon workers. During the busy holiday season, they orchestrated protests at nine locations and 200+ facilities, only ending on Christmas Eve. Photo by Jens Mahnke from Pexels
Strike or Spectacle? Amazon's Union Showdown
Amazon representatives have characterized the protests as a PR play, stating that the Teamsters don’t represent any Amazon employees. It maintains that the drivers protesting are contractors rather than employees. More importantly, Amazon noted that operations during the holidays were unaffected.Despite the end of the strike, the Teamsters vowed to continue their fight, highlighting the need for better pay and improved health benefits for thousands of drivers. Photo by halfpoint
