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Amazon accounting snafu raises larger issues—including Kindle numbers
June 4, 2009 | 6:17 am
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By David Rothman
Isn’t this delightful? Amazon’s Web site told me that TeleRead enjoyed several times more revenue from affiliate fees in May than it actually did.
A corrective notice came after an Amazon employee assured me that the May numbers were correct.
WTF is going on?
Honest mistake, most likely
I’m inclined to believe this was an honest-to-goodness mistake, rather than a hint of some financial mischief.
Still, if nothing, coming atop other snafus, such as the inability of most people to find the trade paperback of my novel at Amazon if they don’t type the “The” in The Solomon Scandals, this suggests the need for Amazon to release Kindle unit sales numbers. It is a public company after all. I’m not a securities lawyer, and, again, I am not accusing Amazon here of wrongdoing, but Amazon’s goof is one more reason for the Securities and Exchange Committee to force Jeff Bezos to release precise numbers.
This is also one more example of the need not to build the book industry around one or two all-too-fallible companies.
Ahead is a full reproduction of the notice I received last night:
Dear Amazon Associate:
We are writing to inform you that incorrect balances were displayed in your May earnings report on Associates Central. This was caused by a system error that resulted in an inaccurate display of additional referral fees. The error has been fixed and your earnings summary now shows accurate referral fees.
We apologize for the confusion our mistake may have caused you. If you have any questions on this or any other matter, please do not hesitate to contact us. We greatly appreciate your ongoing participation in the Amazon Associates program.
Thank you,
The Associates Team
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Comments:
In fact, it’s a good reason not to concentrate ANY activity around 1 or 2 large but fallible companies, or any other system… like everyone building apps for the iPhone, to the exclusion of other platforms. GM’s recent collapse ought to be enough to remind every consumer and businessperson that even the biggest companies can eventually fail.
I got the same notice. My sales are very targeted to a certain set of merchandise. I look at the sales every day. After the notice half my sales were deleted. I smell a rat. Unlike you, I do not think this is a mistake. Amazon it so big it’s just seeing how much they can rip us off until we say ouch. I’m reporting them to the Attorney General and I hope your readers will too.
Sally, tell us more. My mind’s open. I’d also love to hear from others with Amazon affiliations. In previous months were sales at the same level as they were in May? I’m trying to find out if something changed. Maybe a definition of “referred” or whatever. I’ll be most curious how the AG reacts. Which AG are you talking about?
Thanks,
David
It sounds like you’re ready to defend them in a knee-jerk reaction way. ‘Amazon couldn’t or wouldn’t screw random ‘little guys”,’ is that what you think? They don’t need your help. They are rich and powerful.
My sales numbers were right in line with what they were before they removed half of them in May. Nothing has changed with my direct links and they will not say what their mistake was. This may not represent a lot of money but the implications are huge. They delete sales listed on their reports page and all I have are previous printouts with more items listed. I feel very vulnerable.
If I’m the only one writing to the AG then they win. If hundreds or thousands write in and call ‘fowl’ Amazon will have to clean up it’s act.
I wonder what else is going on with Amazon’s accounting. They’re supposed to pay Kindle authors at the end of each month (two months after revenue is actually accrued), and here it is June 4th, and I haven’t been paid.
Sally and Paula…
S:
I’m hardly kneejerk “pro” about Amazon–as shown by the gripes I’ve had against their inept (or worse) handling of the listing of MY book. You don’t have to convince me about Amazon’s mistreatment of the small guy.
That said, it’s big step to go from accusations of ineptness to accusations of theft.
At the same time, just as I’ve called for the an antitrust investigation to see if Amazon is at odds with the law (I don’t know), I’m open to a probe into this sudden restatement of earnings. I meant it. Tell us how the office of the AG (state or federal?) treats your complaint. I think it would be interesting to examine just what changed and force Amazon to issue explanations.
P:
You’re not the only one complaining about late Kindle payments. Please keep us posted. In a sense what you’re experiencing IS theft, in that Amazon is depriving you of use of the money. I doubt you’re collecting interest. Perhaps it’s time for legislation at the federal level to force companies like Amazon to pay up in a certain time or pay interest.
Thanks,
David
David,
That will never happen. It’s just de rigeur in business. If companies had to pay on time, business would grind to a complete halt.
Heck, Paula, I doubt we can stamp out late payments, lol. But given the aggressiveness of big companies in penalizing consumers, it’s only fair that things work in the other direction. I’m talking about the more outrageous cases.
Thanks,
David