Amazon.com, Inc. (NASDAQ:AMZN) online marketplace was the subject of technical glitch that saw thousands of items go on sale for a penny much to the disgust of a number of sellers who incurred thousands of losses in the process. Bloomberg’s, Brad Stone, reports that some of the sellers have ganged up to pursue legal action against the losses that they incurred as a result.
“One penny that was the price that was listed for thousands of items on Amazon’s U.K marketplace on Friday for one hour. That was not a blockbuster holiday sale, but a technical glitch that affected sellers that are represented by an Irish company called RepricerExpress,” said Mr. Stone.
The glitch occurred between 7 and 8 pm a period when customers shopping frenzy is usually on another level according them with a field day to purchase some of their favorite items at extremely reduced prices.
The error stemmed from RepricerExpress software that most of the sellers were using to gain an advantage in terms of pricing on Amazon.com, Inc. (NASDAQ:AMZN)’s marketplace. The software reportedly changes the prices of items automatically to ensure retailers subscribed to the service remain competitive with similar wares online.
RepricerExpress CEO, Brendan Doherty, has already stated that investigation into the matter are underway; Amazon having stated that it cannot refund for items already shipped or those which customers had already been billed.
“Sellers lost thousands of dollars; Amazon was able to cancel some of the sales but for items that were already shipped sellers were out of luck. Some are worried that they may go out of business they are ganging altogether to get legal representation. It’s a mess, but some customers got a big deal,” said Mr. Stone.
Despite the prices of items being slashed during the period, Amazon.com, Inc. (NASDAQ:AMZN) price remained the same bringing to question the need of using third party software’s as a means of gaining an advantage.
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