Pennsylvania-Based Amazon Sellers Share Experiences as FTC Files Lawsuit
Harrisburg, PA (Sep. 28, 2023): The Connected Commerce Council, an organization representing digitally empowered small businesses, hosted a press conference with two Pennsylvania-based Amazon sellers who shared their experiences selling on Amazon in response to the Federal Trade Commission’s (FTC) and Pennsylvania Attorney General’s lawsuit intended to disrupt the popular online marketplace, which was filed Tuesday.
Deanna Slamans, CEO of Naturally Nature in Hershey, PA, says Amazon is a very important platform for her mom-and-pop company that sells earth-friendly diaper products. “The FTC and our own Attorney General that joined this suit obviously doesn’t understand Amazon’s value. In addition to helping us reach millions of potential customers and ship our products at an affordable price, Amazon ads are our most effective marketing tool, delivering better cost-per-acquisition than any other ad platform. Yet, the FTC frustratingly calls these ‘junk ads.’ Every seller should be deeply concerned that the FTC is trying to change how Amazon works without understanding how the Marketplace, e-commerce or running a business works.”
The FTC’s case alleges that by integrating Prime, Amazon’s paid subscription service, with FBA, Amazon’s shipping and handling service, Amazon requires sellers to use FBA and limits competition. However, Amazon doesn’t require using FBA to sell on the platform or qualify for Prime. Instead, sellers who choose to use FBA do so because it is often the easiest and most affordable way for them to qualify for and gain the benefits of Prime – chiefly its free, fast shipping. The FTC’s proposed solution – to force Amazon to change how the marketplace operates – would jeopardize Prime for third-party sellers.
“We ship our candles and home decor both on our own and using FBA,” said Melissa Horvath, owner and CEO of Sweet Water Decor in Pittsburgh, PA. “FBA has been the best decision for my business because it not only opens us up to millions of Prime shoppers but it’s the most profitable option for my business – saving us time, money, and energy while getting orders to our customers fast. I hope that Harrisburg and DC can see the value and tremendous growth that Amazon has provided small businesses like mine to live out the American Dream.”
The FTC’s lawsuit comes at a time of robust competition in e-commerce. A 2021 study showed that 87% of Amazon sellers also sell on at least one other marketplace, with 54% reporting selling on Walmart and 50% selling on eBay. In addition, Chinese online marketplaces Shein and Temu are becoming more popular daily, wooing U.S.-based sellers to their new marketplaces.
