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Amazon Seller Shuts Down After 7 Years Due to Bad Order

July 11, 2023 — 3 minutes
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The Seller's Journey and Background

We recently spoke with an Amazon seller who had grown their business to tens of millions of dollars in revenue over seven years, with a top-selling product on the site. However, they made a critical mistake: they failed to conduct routine inspections of their products.

During their seventh year of business, the seller's supplier changed their raw material suppliers and altered the material and quality of the product. Without regular inspections by Movley, containers of the product were shipped directly to Amazon, leading to negative customer reviews and returns.

The Downfall of the Business

Despite their attempts to take corrective action, the seller faced a series of devastating consequences due to the negative customer feedback. Initially, their listing was suspended, which later led to the suspension of their entire account.

With no good quality products in stock, they experienced a permanent impact on product ratings and rankings, as well as financing implications due to bad inventory. The business was ultimately forced to shut down permanently.

This unfortunate outcome could have been avoided if routine inspections were conducted with Movley to ensure consistent product quality.

The Seller's Strong Supplier Relationship Wasn't Enough

Many skip regular product inspections, assuming that their products are too simple for issues to arise, or believing that their supplier relationships are strong enough to ensure quality. However, the truth is that even minor mistakes, such as applying the wrong UPC or creating an unscannable product, can lead to storefront suspension on Amazon. Larger issues, such as changes in material or quality, can have even greater consequences.

It's important to remember that suppliers are businesses with many workers, not individuals. Production lines, raw material suppliers, engineers, quality standards, testing processes, machinery, employees, and more can all change over time, even with good supplier relationships.

Most Inspection Companies Fall Short

Despite the risks, many inspection companies fail to catch bad products before they're shipped to customers, leaving business owners vulnerable. Even for small orders, the cost of a typical inspection is negligible. With Movley, inspections can cost as little as $302/day and less than 1% of your total Cost of Goods (COGs). It's a small price to pay for the peace of mind that comes with knowing your products are made correctly and packaged properly.

While Movley may not be the cheapest inspection company out there, we prioritize doing things right and being the last quality control partner you'll need. As former sellers ourselves, we understand the importance of quality control and built Movley to solve the problems we faced. Let Movley handle your quality control so you can focus on building the business.

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