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):
|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|
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.
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: 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?
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: They just pay more?
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: 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.
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