Amazon firms face ruin after glitch

Amazon has pledged to “reach out” to businesses hit by a software glitch this weekend – which led to hundreds of items being sold for 1p – although has stopped short of promising them compensation.
The issue has been sparked by a flaw in the RepricerExpress software, designed to keep businesses competitive by automatically repricing items of stock so they are cheaper than others in the online market.
For an hour on Friday, between 7pm and 8pm, a problem with RepricerExpress caused hundreds of items to be sold on Amazon Marketplace at a fraction of their normal price.
One of the sellers, Judith Blackford of Kiddymania, told Sky News she could be forced out of business as result of the error. She said: “I started using Repricer Express – a repricing tool as did a lot of other businesses a few months ago.
“Last night through an error in their programme they listed my stock on Amazon at 1p per item including delivery. I have lost about £20,000 overnight.”
Another online trader Belle thinks her company, which sells toys and games, will lose around £30,000 and she will probably be put out of business. “At the busiest time – this was predicted to be our busiest weekend of Christmas – turnover is zero.”
The gaffe sparked a Twitter frenzy, with one tweet saying: “Amazon are having a glitch on their site and loads of stuff is selling for 1p. I just bought an incense holder, don’t even need it.”
In response, RepricerExpress chief executive Brendan Doherty released a statement on the firm’s website which read: “I am truly sorry for the distress this has caused our customers. We have received communication that Amazon will not penalise sellers for this error. We are continuing to work to identify how this problem occurred and to put measures in place to ensure that it does not happen again.”
A spokesman for Amazon said: “We responded quickly and were able to cancel the vast majority of orders placed on these affected items immediately and no costs or fees will be incurred by sellers for these cancelled orders.
“We are now reviewing the small number of orders that were processed and will be reaching out to any affected sellers directly.”