Bed Scrunchie remains reliant on Amazon after seller account shutdown hit business

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Bed Scrunchie Amazon dependency

Highlights

Bed Scrunchie's Amazon seller account shutdown before the 2024 holiday season cut off its main sales channel, derailing a business generating about $4.5 million in 2024.
Despite account disputes, Bed Scrunchie now relies on a third-party distributor, with Amazon still responsible for an estimated 70% to 80% of sales at a $49.99 price point.
California's attorney general lawsuit alleges Amazon pressures brands to maintain higher prices on competing sites, impacting Bed Scrunchie's ability to offer lower prices on its own website.

Amazon dependence persists after account dispute

As reported by Business Insider, Bed Scrunchie founder Jack Nekhala says Amazon deactivated the company's seller account just before the 2024 holiday season, cutting off what had been its biggest sales channel. He says the shutdown derailed a business that generated about $4.5 million in 2024 and left the founders with debt as they try to rebuild.

Nekhala says he still shops on Amazon two to three times a week, despite blaming the platform for the collapse of the business he and his partner spent years building. He says the habit reflects Amazon's convenience, with saved payment details, shipping information and purchase history making repeat purchases easier than buying elsewhere.

Michael Nusinkis, Nekhala's business partner, says that convenience creates a kind of consumer reflex in which shoppers default to Amazon when they need something. The founders say they saw the same pattern among their own customers, with sales on Amazon rising when a national television infomercial directed viewers to Bed Scrunchie's own website, even though the product was priced higher on Amazon.

Pricing pressure and reseller sales shape recovery

After disputes with Amazon over alleged patent infringement and review policy violations, which the founders contest, Bed Scrunchie no longer sells directly on the platform. Instead, the company now supplies a third-party distributor that keeps the product available on Amazon for $49.99, and Nekhala estimates the marketplace still accounts for 70% to 80% of sales.

He says that means customers may buy Bed Scrunchie on Amazon without realizing they are purchasing from a reseller rather than the original small business. Nekhala also says the company would prefer to sell the product more cheaply on its own website, but believes Amazon's pricing practices make that difficult because lower prices elsewhere could reduce visibility on Amazon.

That issue sits at the center of a lawsuit filed by California's attorney general, which alleges Amazon pressures brands and third-party sellers to raise prices at competing retailers so Amazon is not undercut. In a statement cited by Business Insider, Amazon says it compares prices with other reputable retailers to protect customers from overpaying, and says offers may be less prominently featured if products are listed for less elsewhere, while remaining available for purchase.

Wall Street midday stock movers and analyst rating changes were the focus of our earlier coverage, highlighting sharp gains and selloffs across tech, retail, and healthcare names. We noted moves tied to competitive pressure in memory chips, an eBay upgrade linked to live-selling growth, and deal-driven weakness in quantum-computing stocks, alongside broader optimism around AI-related themes.

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