Home » UK Business News » Amazon accused of leaning on suppliers to make huge payments
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Amazon has been accused of threatening suppliers to delist them if they fail to make hefty lump sum payments to boost sales profitability.
The Grocer reported the e-commerce major had requested one-time payments and significant cost price reductions from UK companies.
Suppliers claim to have been given a mere 48-hour ultimatum to pay the money, which amounts to tens of thousands of pounds.
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The report also shows Amazon warned non-compliance could result in removing their products from the platform.
Experts in the Groceries Supply Code of Practice (GSCOP) have weighed in, saying at least six companies have reported receiving similar warnings.
A UK-based supplier shared their experience, stating Amazon had imposed a two-day deadline for responding to a request for "more than £50,000 to plug a profit gap."
Amazon contends that letters sent to suppliers with such demands were a "mistake."
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A company spokesperson said: “Amazon takes the groceries code very seriously and we strive to ensure we meet our obligations at all times.
“We are aware some grocery suppliers received a notification in error, and we are working to reassure them of our commitments under the GSCOP principles.
“We encourage any grocery suppliers who received this notification to contact Amazon’s code compliance officer.”
This is not the first time Amazon has faced criticism for its treatment of suppliers.
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In the Groceries Code Adjudicator's 2023 annual survey in June, Amazon ranked last, with nearly 12 percent of suppliers claiming the company "never" complied with the GSCOP and 30 percent stating that it rarely did.
An Amazon spokesperson responded at the time: “We take compliance with the Groceries Supply Code of Practice extremely seriously, and we are introducing further changes to continue to improve the experience for our grocery suppliers.
“It is clear from these survey results there is more to do, and we are committed to listening to our suppliers and making further improvements.”
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