Our guest today joined us last year for our “When Sellers Attack” episode. This time we revisit a story we briefly mentioned on that episode that everyone in the Amazon space is talking about.
In September 2020, Spencer Soper of Bloomberg reported that several employees in India were indicted along with 6 Amazon consultants by the DOJ for a bribery scheme worth $100mm dollars to those involved.
One of those accused was Ed Rosenberg, Founder of ASGTG, a membership group for sellers looking to get ahead on Amazon and share expertise. Ed’s company consultants paid for Account and Listing Reinstatements, among other things.
This week, after swearing the allegations were false, Ed went onto Social Media to admit that he had been lying all along and that he was, in fact, guilty of bribery.
Ed has now changed his not-guilty plea to guilty.
My friend and guest today, Chris McCabe, former Amazon employee and founder of eCommerce Chris, and a firm that provides the valuable service of Account and ASIN Reinstatements.
However, Chris, like our director, Malia Kim, here at Avenue7Media, doesn’t break the law, and doesn’t send suitcases full of cash to Amazon employees!
He has followed this case closely and shares what it’s all about. Tune in!
“Some of the Amazon bribes were paid to reinstate sellers who probably shouldn’t have been reinstated. They might have had unsafe products or had counterfeit products.”
Chris McCabe
Running A Successful Amazon Business Takes Time
Running a successful business on Amazon can be a lucrative opportunity for entrepreneurs, but it’s important to keep in mind that success takes time and effort. Sellers should steer clear of shortcuts that may seem appealing but ultimately skirt the law. It can be tempting to take these shortcuts, but they are never worth it in the long run. As a general rule, if something seems too good to be true, it probably is.
“Two wrongs don’t make a right. Just because Amazon is not helping you fast enough or they’ve created a problem for you doesn’t give you license to go and break the law.” Jason Boyce
While selling on Amazon can be cutthroat, it’s important to maintain a strong moral compass. Dishonest business practices may yield quick profits, but they will always catch up with you in the end. By focusing on ethical business practices, sellers can build a strong reputation and ensure long-term success.
Amazon Seller Advice
As an Amazon seller, it’s important to remember that even though something may be common in a foreign country, it doesn’t mean it’s legal or ethical in the United States. Bribery is not only illegal, but it can also result in very serious consequences. Not only could it shut down your business, but it could also result in imprisonment.
The key takeaway here is to not compromise your integrity or your business’s reputation by engaging in illegal or unethical behaviors, regardless of the intentions you might have. Stay true to your values and respect the laws of your own country and those you’re doing business in.
Some Additional Resources…
Links to the news story:
– CNBC
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– Chris McCabe’s LinkedIn
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