Latest news with #FulfilledbyAmazon
Yahoo
3 days ago
- Business
- Yahoo
Amazon Caught Selling Kitchen Faucets That Leach Lead Directly Into Your Water
In the past few months, Amazon has been caught selling facial recognition tech to police departments, AI-generated books on managing ADHD, rice contaminated with arsenic and other "heavy metals," and concentrated sodium nitrate that led to the death of a 15-year-old boy. Now, the mega retailer has been caught merchandising untold thousands of kitchen faucets lined with lead, an enormously dangerous heavy metal. Three separate recalls posted by the US Consumer Product Safety Commission (CPSC) advise customers who bought faucets from Amazon sellers Whisper08, Kicimpro, and ChenFeng to stop using the products and seek a refund immediately. The faucets seem to trace back to a home goods manufacturer in Guangdong Province, China, according to information given by the CPSC. Altogether, the recall effects over 100,000 faucets sold between January 2024 and May 2025. Lead is a toxic metal that can have horrific impacts on human health. It's especially dangerous in children and pregnant or soon-to-be-pregnant women. The World Health Organization notes that there is "no level of exposure to lead that is known to be without harmful effects," and that exposure is "entirely preventable." In the past, Amazon was legally allowed to skirt responsibility for selling dangerous items through its site, even ones listed by third-party retailers via the company's "Fulfilled by Amazon" (FBA) service. That all changed last year, when the CPSC issued a unanimous decision holding Amazon responsible for product recalls and notices. Even if Amazon doesn't technically make or sell the product, the CPSC ruled that FBA nonetheless makes the sale possible, ultimately placing liability on Amazon. That decision retroactively made Amazon legally responsible for over 40,000 incredibly dangerous items it profited off over the years. According to the CPSC, these include disturbing products like flammable children's pajamas, hairdryers lacking electrocution safeguards, and busted carbon monoxide detectors. Presumably, it also includes items like the infamous male-to-male extension cord — also known as a suicide cord — which became a minor internet sensation when netizens discovered them listed on Amazon back in 2022. The suicide cord hysteria eventually became so bad that the CPSC issued a statement clarifying that you should seriously never, ever, buy one for any reason. Ever. Still, it's important to note that these measures are reactive, and don't address products prior to being listed. Amazon is still not required to test FBA products for lead or other hazards — only take them down after the dangers are reported. Basically, when it comes to home improvement, you're better off buying your stuff from virtually anywhere else. More on Amazon: Director of ICE Says Deportations Should Operate More Like Amazon Prime
Forbes
08-05-2025
- Business
- Forbes
Could Tariffs On Chinese Goods Open A Door For Small Businesses?
Rytis Lauris is the cofounder and CEO of Omnisend, a marketing automation platform built for e-commerce. We are at the beginning of a potential trade war with China, but the majority of Americans view tariffs on Chinese goods negatively and are worried that the tariffs will drive up prices. Shoppers looking to save money may shift to low-cost marketplaces like Amazon and Temu, but there's an elephant in the room: Marketplaces and tariffs are heavily intertwined. Many of the goods sold on these marketplaces are manufactured in China and thus subject to tariffs. The questions then become: How will tariffs impact these companies and how will they impact consumers' willingness to shop with them? More importantly, what is the effect on small to medium businesses and what can brands do to make the most of this potential opportunity? Temu has established its reputation as a low-cost marketplace and competitor of Amazon. Most of its products are sold by Chinese manufacturers and shipped directly to consumers via low-cost shipping options that take upward of 30 days, and because of the low price of products, orders were previously exempt from de minimis (no duty on imports valued less than $800). Yet even with low prices and increased popularity, trust in the platform remains low. My company surveyed 4,000 people across the U.S., U.K., Australia and Canada and found that only 6% of shoppers surveyed trust Temu over Amazon. If prices increase, will they continue to shop on a less-trustworthy site? Twenty-nine percent say no, reporting that if prices increase on Chinese marketplaces like Temu they'd immediately stop buying or buy less. One in five, however, said they will still shop there unless the increase is more than 20%. Amazon also relies heavily on Chinese manufacturers and sellers that use the Fulfilled by Amazon (FBA) program. In this model, goods sold on the platform are imported and subject to tariffs. Amazon's Temu competitor, Amazon Haul, follows a similar business model as Temu, where manufacturers ship directly from China to consumers. Thus, a rescission of de minimis exemption has the same impact as it does on Temu. Takeaway: Beyond de minimis, any Chinese good, whether it's sold on Amazon, Walmart or another retailer, will face the same tariff. If prices increase with one retailer, it's logical to assume they'll increase with the others. When shoppers say they'll stop purchasing from Temu if prices rise, it may be moot if prices simultaneously increase at other retailers. If Amazon and Temu both see drastic price increases, it could leave the door open for small and medium-sized business (SMB) ecommerce brands to seize some of their lost market share. But will it be possible? While large corporations may have the financial flexibility to adjust their supply chains to lessen the impact of tariffs, most SMBs don't have the same luxury. Many source their materials or finished goods from China due to cost efficiency and supply chain reliability, but don't have the buying power to demand lower prices. Some companies may pivot to domestic manufacturing, but this transition takes time and may not solve the issue. Domestic manufacturers may not be fully equipped to take on the influx of production, and even if the products are manufactured in the U.S., many of the materials are sourced from overseas, exposing them to tariffs. Not to mention, the labor costs of domestic manufacturing are typically higher, which is one reason so much manufacturing happens offshore. Others may look to alternative countries such as Vietnam or India for lower-cost production, though shifting supply chains is a complex process that involves logistical, regulatory and quality control challenges. Plus, these countries are also currently experiencing higher tariffs, albeit at a lower rate than China. Takeaway: Even though price increases can make large retailers like Walmart, Amazon and Temu less attractive, it doesn't mean it will make SMBs more competitive. In fact, it could weaken their positioning, especially if a recession comes to fruition. This leaves consumers between a rock and a hard place, forcing them to make tough decisions. E-commerce is in for an uncertain year as shopping behaviors change, forcing brands to adapt. As we navigate 2025, I believe businesses must focus on reinforcing their value to consumers and maximizing marketing channel sales. Whether it's fast and free shipping and returns, product quality or exceptional customer service, brands can highlight these value-adds in their emails, websites and social media channels. Some brands may be forced to lower their minimum threshold to qualify for free shipping to compete, but proving value to customers is essential. Brands can also use high-performing marketing channels, such as automated email marketing, to generate sales and increase customer retention. Use behavior-based emails to target customers at high-intent stages of their shopping journeys. Dedicated post-purchase emails can also engage shoppers and improve their experience, resulting in repeat purchases. With fewer sales to go around, retention is key to profitability. By reassessing competitive differentiators and streamlining marketing channel return on investment, brands can formulate a plan to weather the storm and grow at a time when spending is expected to slow. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Yahoo
23-04-2025
- Business
- Yahoo
Shopline Partners With Amazon to Add Buy With Prime for Merchants
E-commerce software provider Shopline is looking to turbo charge in the U.S., teaming up with Amazon to give its merchants access to new fulfillment options through Buy With Prime. Shopline merchants using the Buy With Prime service can either ship to Amazon fulfillment centers or use their existing Fulfilled by Amazon inventory to bridge the last mile between seller and shopper. The new relationship will also allow Shopline merchants to use Amazon-powered checkout even if the company is not currently an Amazon seller. More from WWD Melania Trump Wears Mackage and Roger Vivier to Easter Egg Roll EXCLUSIVE: Liz Earle Is Returning to the U.S. With Amazon Launch Holly White Is the Internet's Boyfriend's Secret Weapon Christopher Yang, copresident of Shopline, said the addition of Buy With Prime not only helps merchants elevate their e-commerce offering, but connects them with members of Amazon's mammoth Prime user base. By pushing into the U.S. market and linking with Amazon, Shopline is squaring off with Shopify, which also offers a Buy With Prime option and has a large merchant base. But Yang stressed how 'very, very focused' Shopline is. 'We actually built all the essentials, the 20 percent of apps that are necessary to run your business,' he said. 'And really when we say your business, we're not going to be a general purpose e-commerce platform. We built toward fashion, we're built toward health and beauty. So we give you the five [to] 10 apps that you need in fashion.' For instance, he said that fashion has a 'very high return rate' online. 'A lot of it is really due to incorrect sizing,' he said. 'So we build that into our solution to help you reduce your return rate.' The deal with Amazon is a big step for Shopline, which was founded nearly 12 years ago in Hong Kong, but is now based in Singapore. The company has some 600,000 merchants selling into a variety of markets including Taiwan, Hong Kong, China, Japan, Malaysia, Singapore, the U.K., Australia and, more recently, the U.S. 'Because we're an international company, we focus so much on global selling as one of our key differentiations,' Yang said. 'This is very helpful when you have an international product and you don't want to set up your logistics and fulfill immediately in the U.S. You could easily test a product with a much more diverse channel, and then you could actually build a DTC side and plug into social and see how things convert.' Best of WWD Retailers Leverage First Insight for ESG Alignment What Steph Curry's Sneaker NFTs Can Teach Fashion Year in Review: Brands, Retailers Go Hyper-digital in a Challenging Landscape
Yahoo
20-03-2025
- Business
- Yahoo
Amazon Files Lawsuit Against Consumer Product Safety Commission Over Recall Requirements
Amazon is suing the Consumer Product Safety Commission (CPSC) over an order it issued to the company related to recalling third-party sellers' items. The order that triggered the lawsuit came years after the CPSC initially recalled more than 400,000 units of products sold on Amazon's marketplace through merchants signed up for Fulfilled by Amazon (FBA). That recall spurred an investigation, and years later, a decision that Amazon would be responsible for recalling hazardous products sold on its marketplaces, even if they are listed by third-party sellers. More from Sourcing Journal Flexport Alleges Freightmate AI Founders Stole and Used Its Trade Secrets to Build Company MSCHF Sells Licensed Cultural Anarchy for Just $79.95 Teamsters Challenge Ruling that Yellow Did Not Violate WARN Act At the time of the order, the CPSC determined that Amazon should be categorized as a distributor, rather than a third-party logistics provider, for its FBA program. In that order, it noted that the company 'does considerably more than is allowed by the definition of 'third-party logistics provider.'' That distinction is important because distributors are subject to more stringent regulations than third-party logistics providers. In its new lawsuit, Amazon insists, as it did leading up to and upon being handed the CPSC's order, that it should be qualified as the latter. If the CPSC had classified it that way, that would have shielded Amazon from the responsibility associated with processing recalls. 'The Commission may issue recall orders to the manufacturers, distributors, and retailers of a product, but not to third-party logistics providers who store the product in their warehouses and transport it to customers,' Amazon wrote in its complaint. When the order first came down last year, an Amazon spokesperson promised that the company would appeal the CPSC's decision. Now, it has made good on that threat. In the lawsuit, filed March 14, Amazon alleges that the CPSC and its current commissioners have 'overstepped…by ordering Amazon to conduct a wide-ranging recall of products that were manufactured, owned, and sold by third parties,' and thus, treating it as a distributor rather than a third-party logistics company. Amazon alleges that the CPSC has used its power to 'act as judge, jury, and prosecutor in the same proceeding,' violating the constitutional rights of the company. 'The body that voted to file the complaint against Amazon— the commissioners—also has the power to hear the evidence, decide factual disputes, interpret and apply the law to the facts and fashion the remedy. That arrangement contravenes Amazon's Fifth Amendment rights because it 'violates the [Supreme] Court's longstanding teaching that ordinarily 'no man can be a judge in his own case' consistent with the Due Process Clause,'' Amazon states in its claim. But the company doesn't merely take the issue with how its fate was decided—it also believes it shouldn't be delineated as a distributor, primarily because it doesn't sell many of the products for sale on its own platform. Instead, because it fulfills orders for sellers that price, create listings for and supply their own products, and because 'Amazon does not sell or take title to any of the products,' it asserts that it should be categorized as a third-party logistics provider. 'Amazon falls within the definition of [a] third-party logistics provider with respect to products sold using the FBA service because it does not manufacture, own or sell those products, but instead stores and ships them on behalf of third-party sellers who retain title throughout the transaction,' the company states. In its complaint, it requests that a judge vacate a final order from the CPSC, filed in January, that required the company to take further action on the recalls. It also asks that a judge label Amazon a third-party logistics provider rather than a distributor and that the court rules that the CPSC's prior actions unconstitutional. Non-profit Consumer Reports supported the CPSC's decision when it was first announced last year, and it continues to believe that Amazon should be held responsible for the items it fulfills for third-party sellers. William Wallace, director of safety for Consumer Reports, said the lawsuit, which alleges overreach of power on behalf of the CPSC, is a power grab from the e-tailer. He also stated that Amazon should be classified as a distributor, not a third-party logistics company. 'Amazon wants to be held blameless for the safety of products sold by third parties on its platform, which is bad enough—but what's even worse is that the company is attacking the legal foundation on which the CPSC rests,' Wallace said in a statement. 'Amazon's suit suggests the company thinks the people of the United States would be better off without an independent, bipartisan safety agency to enforce our laws and protect consumers from dangerous products. We strongly disagree and condemn Amazon's reckless constitutional claims.'
Yahoo
18-03-2025
- Business
- Yahoo
Amazon Claims It Is Not Responsible for Some Hazardous Products It Has Sold
PCMag editors select and review products independently. If you buy through affiliate links, we may earn commissions, which help support our testing. Amazon is suing the US Consumer Product Safety Commission (CPSC) over the agency's order requiring the e-commerce giant to recall hazardous products sold to consumers on In the complaint filed in Maryland last week, Amazon argues that it was a logistics provider of the hazardous products in question and, therefore, isn't responsible for the recall. 'The Commission may issue recall orders to the manufacturers, distributors, and retailers of a product, but not to third-party logistics providers who store the product in their warehouses and transport it to customers,' Amazon says. The case dates back to 2021. The CPSC sued Amazon for selling over 400,000 units of products that posed a substantial hazard under the Consumer Product Safety Act (CPSA). The products were sold between 2019 and 2021 and included faulty carbon monoxide (CO) detectors, hair dryers without electrocution protection, and children's sleepwear violating federal flammability standards. Amazon later notified customers about the faulty products and blocked their sales. However, the CPSC took issue with two matters. One, the agency felt that Amazon 'downplayed the severity of the hazard by stating only that the product 'may' cause harm.' Two, the agency found that Amazon didn't provide a way to return the products or issue a full refund; instead, it only issued gift cards for Amazon credit. Last year, Amazon argued before an administrative law Judge that 'it was not a distributor and bore no responsibility for the safety of the products sold under its Fulfilled by Amazon program.' The judge, however, rejected Amazon's argument, determined it is a 'distributor,' and ordered the company to 'develop and submit proposed plans to notify purchasers and the public about the product hazards, and to provide refunds or replacements for these products.' As mentioned, Amazon now says it's only a logistics provider in this case since it does not manufacture, own, or sell the products sold via its Fulfilled by Amazon program. Additionally, Amazon argues that since CPSA grants the CPSC authority to issue recall orders only to manufacturers, distributors, or retailers, the agency cannot issue recall orders to the e-commerce giant. 'The Commission brought an administrative lawsuit only against Amazon to expand its authority over online marketplaces,' Amazon claims. While Amazon continues to deny its legal responsibility in the case, consumer safety advocates argue otherwise. 'Instead of demonstrating its commitment to consumer safety, Amazon has fought the CPSC every step of the way for more than three years,' said William Wallace, director of safety advocacy for Consumer Reports. 'It's absurd to suggest that because a company hosts a marketplace online it should be exempt from sensible requirements that help get hazardous products out of people's homes and prevent them from being sold.'
