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Zlio Banned by Amazon; Plans on Adding Additional Partners

by kris on May 23rd, 2007

Earlier this year I signed up for an online shop on Zlio. The service is one of many store services that provide you with a customizable online shop to list products for sale from Amazon others with their affiliate link. After you make sales they then send you the money. Needless to day it wasn’t exactly what I was looking for as I eventually opted for AuctionAds but the story turned interesting yesterday when I received this email:

Dear user,

One week ago Amazon informed us that they no longer wished to have Zlio promote Amazon products in the United States. We were advised through a generic email with immediate effect. For the past week we have endeavored to understand and get to the heart of their concerns. Amazon has remained inflexible. As we have yet to resolve the matter, we feel compelled to inform you of this situation.

Of course Amazon is not the only merchant and we are working hard to have as many products and merchants available for you. Within the next 10 days we expect to announce several new agreements with major merchants in the United States. Strangely enough, we continue to work with Amazon outside the United States.

The unfortunate effect of Amazon’s decision is threefold:

1. Shopkeepers in the United States will no longer be able to add Amazon products to their shops.
2. In 20 days, Zlio will remove all Amazon products from your shop and replace automatically as many as possible with identical products from other merchants.
3. Amazon will no longer pay commission to Zlio for products promoted on you shops and this with effect one week ago. Please contact us if you feel that this has resulted in any significant loss to you.

While we regret Amazon?s decision, we are dedicated to provide our users with the most comprehensive list of products as well as the most competitive group of merchants. To that end, we expect to confirm that Barnes & Noble as well as several other large merchants have joined the Zlio network. Freedom of choice guides us in everything we do.

We apologize if this has caused you any inconvenience. Feel free to reach out to me personally if you have any thoughts or recommendations. I look forward to hearing from you.

Jeremie Berrebi
President/CEO
Zlio.com

According to TechCrunch, who has yet to receive an official response from Amazon on the banning, the ban on affiliate sales through Zlio was likely due to their product being in direct competition to Amazon’s product, which is very similar to Zlio except exclusively offers Amazon products.

Although I fully expect this situation to be resolved and Zlio to rebound with a more unique shop offering, this is indeed a setback for users of the service. Assuming I get an update on the situation I will be sure to pass along word on the partner merchants for Zlio’s service.

POSTED IN: Web News

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