oops!Amazon serves up expensive ads for products people can’t actually buy

It can be extremely annoying to click on an Amazon ad in search results only to find out that the product you want isn’t shipped to your location. Now, let’s say you’re a small business owner and you need to pay for these ads. (Forget companies and dropshippers, I know you all hate them.) You just think that based on the amount of ad actions you get, you can make a ton of money. But these ads don’t convert into sales because Amazon keeps serving these ads to people who can’t even buy your product.This is apparently what happened to at least one seller Bloomberg He was charged $200,000 to $300,000 for advertising to California residents because he couldn’t sell his high-end gaming computer products there.

The seller stopped shipping to California due to California’s PC power consumption regulations, which would have required him to obtain expensive lab reports for his product. But Amazon’s automated systems apparently continued to advertise his products there and allegedly denied there was a problem weeks after he flagged the issue and followed up. As a result of charging thousands of dollars in fees, the seller, who employed 80 people in Virginia to assemble custom computers, reportedly made zero profits in November, December and January.

Amazon acknowledged the problem in a statement to Engadget. It told us it had looked into the matter and found it only affected a “small number” of sellers. The company also said it has apologized to the sellers it spoke with. Bloomberg The company is refunding him $15,000. That’s a fraction of the hundreds of thousands of dollars the seller said he lost, but Amazon said it only made a “very small portion” of his listings available to California residents. “We will similarly contact and refund any affected sellers and are updating our processes to ensure that we are not charged for any such ads in the future,” the spokesperson said.

The company’s ad system generally isn’t as geo-targeted as Google Ads because it focuses on matching buyers to certain brands or products that may interest them. It also cannot ensure that the products it advertises comply with state regulations and, therefore, can be shipped to its residents.as Bloomberg pointed out that this is not the first time Amazon has faced advertising problems. Last year, the U.S. Federal Trade Commission filed an antitrust lawsuit against the company. Among the regulator’s accusations was that it “deliberately increased spam ads, causing search quality to deteriorate.” A report released after the lawsuit suggested that Amazon could strike deals with other companies to ensure their listings are free of spam ads, which is why Apple’s official product pages may look cleaner and less cluttered than competitors .

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