Bed Scrunchie Founder Claims Amazon Nearly Destroyed Business
Bed Scrunchie founder Jack Nekhala alleges Amazon collapsed his business by deactivating his account, though he continues to use the platform for its convenience.
Jack Nekhala, founder of Bed Scrunchie, claims Amazon nearly destroyed his business after the company deactivated his seller account immediately before the 2024 holiday season. Nekhala states the shutdown collapsed his business and left him with debt, though Bed Scrunchie now sells on the platform through a third-party distributor.
Despite the conflict, Amazon still accounts for 70% to 80% of the company's sales. Nekhala and his business partner, Michael Nusinkis, admit they continue to shop on the platform several times a week because it is deeply embedded in daily life and removes friction from the shopping process.
Nekhala further alleges that Amazon's pricing policies force sellers to maintain high prices across all retail channels to ensure visibility on the marketplace. Amazon defended these practices, stating the company compares prices with other retailers to protect customers from overpaying and to maintain trust in the marketplace.
