Products Sold For A Penny on Amazon (NASDAQ:AMZN) Due To A Malfunction.

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By Thomas Copeland on December 16, 2014 Company

A malfunction has posed a lot of complications for Amazon (NASDAQ:AMZN). In the UK small businesses have formed groups to deal with the chaos that arose due to the malfunction in Amazon’s (NASDAQ:AMZN) website that showed a one penny price for the products for a large number of businesses and businesses have been badly plunged because of it. According to City A.M’s report many businesses fear that they would get bankrupt after the one penny price malfunction on Amazon’s (NASDAQ:AMZN).

The malfunction affected hundreds of products that were sold on Amazon (NASDAQ:AMZN) between 7pm and 8pm on Friday. It arose due to a problem in the Repricer Express, an online tool used for automated pricing. The Register has warned that this blooper could cost thousands of pounds to the individual retailers. Customers who made these highly discounted purchase, celebrated it on social media and in response to it many of these retailers shared their sorrow.

Saying that their livelihood is at risk as smaller, family run businesses will be the one that will be the greatest prey to this malfunction. As these businesses will have to process the orders at a price of a single penny and therefore the loss they would face would be enormous. City A.M was told by Mehboob Rasool, a furniture retailer, that smaller retailers that sell on Amazon (NASDAQ:AMZN) have clubbed together to hire a lawyer for their case.

The retailer added that he had been charged with a fee of £5,000 from Amazon (NASDAQ:AMZN) after his products that were worth thousands of dollars were sold for a petty price. Another seller Judith Blackford who is the owner of the Kiddy mania said that she lost £20,000 in that one single night and called for support through Twitter. Repricer Express, apparently the main culprit in this bug, has apologized for the situation on its website.

It says that it worked with Amazon (NASDAQ:AMZN) to solve the problem and the CEO of the company said that they understand that the customers are unhappy and the company would try to eliminate the problem and would try to regain the confidence of their customers. Amazon (NASDAQ:AMZN) cancelled most of the orders that were placed when the one penny price was being charged. However there were a small number of orders that did pass through at that time.

Therefore Amazon (NASDAQ:AMZN) is looking into it. Amazon (NASDAQ:AMZN) told the business Insider that it is aware that a lot of seller posted incorrect price for a short time period because of the fault of a third party software they used to set prices for their products on the Amazon website. It further adds that Amazon has responded quickly to the situation and cancelled most of the orders that were placed during the malfunction and that Amazon would not charge any business for the cancelled orders. Amazon (NASDAQ:AMZN) is now looking into the small number of orders that were placed during the malfunctioning.