amazon.com shipping scam (or is it ozbo.com)

If you buy ozbo.com products on amazon.com, you pay a fairly high
shipping charge.

If you buy ozbo.com products on ozbo.com, you pay a much lower
shipping charge.

Where the heck is that extra money going? Is ozbo.com undercutting its own resellers?

Here’s the transcript of my chat with ozbo.com re this issue (scroll down):

The following is a record of your online chat.














General Info
Chat start time  Jan 24, 2013 3:05:44 PM EST
Chat end time  Jan 24, 2013 3:47:21 PM EST
Duration (actual chatting time)  00:41:36
Operator  Tara

Chat Transcript

info: Please wait for a site operator to respond.

info: You are now chatting with 'Tara'

you: I just placed an order for Hormel Roast Beef Hash and noticed that the shipping was MUCH cheaper if I order directly vs if I order from Amazon. Is this intentional?

Tara: Hello! How may I help you?

you: As above, please :)

Tara: We offer $4.95 flat rate shipping anywhere within the Continental United States on our website.

you: OK, but if I order through Amazon, the shipping price is much higher?

Tara: Yes, the $4.95 flat rate shipping is only offered on ozbo.com

you: And you see nothing wrong with that? Same product, same shipping, but costs way more on Amazon than on ozbo.com.

Tara: We are not in control of the Amazon platform and we must adhere to their shipping fees based on the weight of the product. With Ozbo we have a standard shipping policy of $4.95.

you: When I order through Amazon, the product still ships directly from you to me, correct? Or does it ship to Amazon first and then to me?

Tara: It ships directly from Ozbo.

you: Where does the extra shipping money go if I order through Amazon? Does Amazon get that extra money?

Tara: Have you placed on order with Ozbo?

you: Yes, I have, I'm just curious about why the shipping prices are so different. It seems deceptive and wrong.

Tara: We apologize for the confusion.

you: At the very least, I'd like to know who is pocketing the dirty money.

Tara: May I ask you what your Order Number is please.

you: That's not really relevant, though. I ordered thru your site and got the 4.95 shipping rate, but I ALMOST ordered through amazon.com, and wanted to get ozbo.com's position on this issue.

Tara: We do pay Amazon a commission to sell our products on their website.

you: And the customer ends up paying part of that commission?

Tara: We are able to list our shipping rates at the price of our choice on our website.

you: But Amazon insists you use their shipping rates even though they never ship or receive the product?

Tara: We offer $4.95 flat rate shipping on our website.

you: Someone is making money deceiving customers. Is it ozbo.com or amazon.com?

Tara: Ozbo.com and Amazon.com do not make money by deceiving customer.

you: OK, if I order through amazon.com, who gets the extra shipping charge I pay?

Tara: You will need to contact Amazon.com for further information.

you: You don't know whether your company gets extra "shipping" money when people order through amazon.com?

Tara: An item that weighs 40lbs and an item that weighs 10lbs is not going to cost the same amount to ship. We are shipping everything on our website for $4.95.

Tara: There is not an 'extra' shipping money.

you: Yes, I understand that. But, if someone buys your items through amazon.com, why do they pay the full shipping charge, and not get the discount from your website?

Tara: There is not any 'extra' shipping money

you: My question is: if I order your products through Amazon, I pay more. What additional benefit do I get that justifies this extra cost?

Tara: We are trying to drive business to our website.

you: Of course, I understand that. But, from a consumer's point of view, why am I paying more through amazon.com?

you: There's no indication on your amazon.com product page that your product will ship cheaper if they come to ozbo.com.

Tara: You are not 'paying more', you just aren't receiving the shipping promotion that we have on our website.

you: Ummm, if I'm not receiving the shipping promotion, I *am* paying more.

Tara: Yes, I am sorry but Amazon.com does have rules and regulations that we must abide by.

you: OK, and, just to confirm, your company position is that this is not an unfair and deceptive trade practise?

Tara: We are not an unfair company.

you: OK, and, to confirm, people who buy your product on amazon.com do not receive any more benefit or service than if they buy on ozbo.com?

Tara: yes

you: They just pay more?

Tara: yes

Tara: Only because of our $4.95 shipping promotion

you: So you're undercutting Amazon. Isn't that metaphorically biting the hand that feeds you?

you: If I'd ordered from amazon and then found out about the promotion, I would have been unhappy.

Tara: No, we love Amazon.com

you: Most companies don't undercut their resellers.

Tara: Is there anything else I can help you with?

you: LOL!

you: OK, OK, I guess we won't reach a conclusion on this.

you: Please file this as a complaint with your complaints department.

you: I'll blog it and see if we can bring this injustice to and end.

info: Your chat transcript will be sent to ozbo@barrycarter.info at the end of your chat.

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