EBay accuses Amazon of ‘unlawful’ scheme to poach sellers
Online commerce marketplace eBay has accused e-commerce giant Amazon of engaging in “an international, coordinated scheme” to steal merchants for its own website, the company confirmed to FOX Business on Wednesday.
“We have uncovered an unlawful and troubling scheme on the part of Amazon to solicit eBay sellers to move to Amazon’s platform,” a spokesperson for eBay said in a statement. “We have demanded that Amazon end its unlawful activity and we will take the appropriate steps, as needed, to protect eBay.”
EBay sent its digital retail rival a cease-and-desist letter earlier this week, claiming Amazon representatives have been using its online messaging system to poach sellers for “several years.” Sales representatives for Amazon across the globe sent “many hundreds of” messages to sellers on eBay’s platform, the former claimed, as first reported by The Wall Street Journal.
EBay began an investigation into the practice after it was notified by a seller about the recruitment tactics 10 days ago. The company says the full extent of the misconduct remains to be uncovered.
The company says Amazon’s conduct violates California’s Comprehensive Computer Data Access and Fraud Act, which prohibits the misuse of eBay’s computer systems.
In a statement to FOX Business on Wednesday, a spokesperson for Amazon said the company is “conducting a thorough investigation of these allegations.”
Unlike Amazon, which sells some of its own branded products, eBay’s platform is based on the activity of third-party merchants. It uses its messaging platform to communicate with sellers, who must set up accounts with the company. The system also allows sellers to communicate with one another and with buyers. EBay prohibits spam, the promotion of outside sales or exchange of outside contact information through its messaging system.
Merchants can, and do, use both platforms to sell products.
Amazon representatives reportedly used encrypted messages to contact sellers in order to avoid detection, such as "You can write me at jdoe AT amazon DOT com,” according to eBay. They also reportedly remained generic and suggested continuing the discussion over the phone.
While eMarketer estimates that Amazon will be responsible for nearly half of all online retail sales in 2018, eBay was its closest rival – projected to comprise more than 6 percent for the year.
