Amazon has a less than stellar reputation when it comes to the way it handles its third-party sellers. Merchants have reported restrictions on where they can sell, being kicked off the site for unknown reasons and issues with counterfeiting for instance. But Germany has forced the big A to change its attitude, and the retailer will now be overhauling its terms of service for third-party sellers around the globe.
Germany’s anti-trust authority has agreed to drop a seven-month investigation into Amazon’s merchant terms after Amazon agreed that it would amend its Business Services Agreement. The new terms will take effect within 30 days. This means that Amazon now complies with European rules governing liability towards its business partners on its European platforms. It will have to give merchants 30 days’ notice, as well as an explanation, before removing a seller from the platform, and merchants in Europe will be able to take Amazon to court in their own country.
The changes will be in effect in Germany, Britain, France, Italy and Spain, as well as other worldwide sites in America and Asia. It is a huge win for third party sellers and a big blow to the retail giant who has to make a lot of changes.