Amazon Software Glitch Sells Products For Just a Penny Sellers lose thousands after repricing tool goes horribly wrong.

By Geoffrey Smith

This story originally appeared on Fortune Magazine

There's more to being a successful retailer than keeping your buyers happy.

U.K. businesses that sell via Amazon.com's local site are up in arms over a software glitch late Friday that led to their items being sold for as little as a penny. Some ended up out of pocket to the tune of up to $30,000.

The incident was down to a problem with a software tool developed by Derry-based RepricerExpress, which allows businesses to offer their goods on Amazon.co.uk.

The software automatically changes prices for the items on sale to guarantee that they stay competitive, but in this instance, it generated a self-reinforcing loop in which goods were automatically re-priced down to a penny.

One user complained on an Amazon bulletin board that stock worth $15,000 had been sold in this fashion within 40 minutes.

"Being they are not based in the US (sic) It takes away lots of options for us to recoup our loses," the user wrote. "Last night I had to explain to my wife and 3, 4 and 5 year old that we could not take our trip to Disney in February."

City AM cited one fancy dress company owner as saying her company had lost over $30,000 overnight.

Amazon said it was unable to cancel orders that had been dispatched and charged to customers, but another user on the bulletin board noted that it had been able to cancel those that weren't slated for urgent shipping.

Repricer Express chief executive Brendan Doherty said on the company's website he was "truly sorry for the distress this has caused our customers," and said Amazon had reassured him that sellers' accounts wouldn't be penalized as a result.

It wasn't clear what degree of compensation would be available to the businesses that had suffered. RepricerExpress didn't respond immediately to a request for comment from Fortune.

News Editor for Europe at Fortune.com.

Editor's Pick

Related Topics

Cryptocurrency / Blockchain

Why the Next Crypto Bull Run Will Be Like Nothing We've Ever Experienced

We are on the precipice of what could be the greatest transfer of wealth that has ever happened in human history.

Business News

Gen Z's Main Career Aspiration Is to Be an Influencer, According to a New Report

Over half of Gen Z individuals surveyed expressed a desire to become influencers, compared to 41% of adults from other age groups.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

Business News

Disney Is Investing a Massive Sum to Expand Its Theme Parks and Cruises

The company made the $60 billion revelation in an SEC filing earlier this week.

Business News

Sam Bankman-Fried's Parents Sued by FTX Over Alleged 'Misappropriation' of Millions

FTX has initiated a lawsuit against the parents of its founder, Sam Bankman-Fried, in an attempt to recover millions of dollars that the company alleges were fraudulently transferred and misappropriated.