After going all-in on Amazon, a merchant says he lost everything


How Amazon treats third-party sellers is at the heart of a recent US House Judiciary Committee report concluding that big technology companies often abuse their power over smaller partners. — Reuters

Barak Govani made a big bet on Amazon.com Inc earlier this year that he now regrets. He shuttered his New York Speed clothing store on Los Angeles’s storied Melrose Avenue, packed up US$1.5mil (RM6.25mil) in inventory and shipped it to Amazon warehouses around the United States, putting his fate in the hands of a company that has routinely presented itself to the world as a friend of small business.

Today, the 41-year-old retail veteran is broke and couch surfs between his mother’s home and his sister’s place. Govani hopes to start anew by getting Amazon to pay him for inventory the company destroyed after suggesting his products could be fake – an accusation Govani strenuously denies. His lawyer in September sent a demand for US$800,000 (RM3.33mil) – along with invoices to verify his merchandise came directly from fashion brands – and they’re waiting for Amazon’s response.

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