eBay Sues Amazon For Allegedly Poaching Marketplace Sellers

It seems is going after Amazon, filing a lawsuit Wednesday (October 17) in which it contends Amazon illegally stole sellers from its own marketplace.

The Wall Street Journal, citing the lawsuit which was filed in Santa Clara County in California, reported eBay alleges Amazon has over the past several years “perpetrated a scheme to infiltrate and exploit eBay’s internal member email system.” eBay contends the scheme was employed by a slew of sales reps at Amazon both in the U.S. and overseas in an effort to bring eBay sellers over to Amazon.  “For years, and unbeknownst to eBay, Amazon has been engaged in a systematic, coordinated effort to infiltrate and exploit eBay’s proprietary M2M system on eBay’s platform to lure top eBay sellers to Amazon,” eBay contends in the lawsuit, according to the Wall Street Journal. “The scheme is startling in breadth — involving large numbers of Amazon representatives (“Amazon reps”), targeting many hundreds of eBay sellers, and spanning several countries overseas and many states in the United States (including California)],” reads the text. In the lawsuit eBay points to evidence that coordination for the scam came from within the headquarters of the company, pointing to messages sent to sellers and similar patterns of behavior following that. In some cases the behaviors were identical, eBay claims. The lawsuit noted that a lot of the accounts used to send the messages were from devices connected to Amazon IPs.

The Wall Street Journal noted that it previously reported that Amazon was mailed out a cease and desist letter from eBay about the same allegations.  Amazon pointed to an earlier statement it made to the Wall Street Journal when the paper contacted it about the lawsuit. In that previous statement, the eCommerce giant said it was conducting an inquiry into the allegations.  eBay wants Amazon to permanently stop misusing its messaging system to poach sellers and to collect for unspecified damages, noted the Wall Street Journal. 





The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.