New investigation shines light on forced labour risks in Amazon seller supply chains

With Amazon Prime Days well underway and the online giant predicted to hit 23.8 billion US dollars this week, new research highlights the significant risks of forced labour hiding within Amazon sellers' supply chains.

An investigation from human rights campaign organization Labour Behind the Label traced fashion products from three UK-based sellers to three supplier factories in Pakistan and found several forced labour concerns. Garment workers in the supplier factories reported they were not being paid minimum wages, were being forced to work overtime and excessive hours with no legal contracts or payslips, and did not have access to mandatory social security.

Report undercovers potential risks of forced labour in Amazon sellers' supply chains

In the report, a machinist by the name of Hussain at one of the Pakistani suppliers that produces products for small brands, including Amazon seller Ice Cool Fashion, stated he is paid 35,700 PKR (equal to 125.41 US dollars or 95.50 pounds) monthly, working a 10-hour day.

Falling under the minimum wage of 38,280 PKR per month for semi-skilled workers, Hussain said in the report: "We are barely surviving on such a salary. I live in a 2-room house with my five children. I hardly manage to pay for my utilities on such a salary, and we are living hand to mouth."

Labour Behind the Label traced a link between the supplier A&M Fashion and Ice Cool Fashion, using shipping records, finding seven shipments between May 2023 and April 2024 valued at a total of 44,966.45 US dollars. The brand paid 8.37 USD per piece for its maxi skirt order, which retail on Amazon for 29.99 pounds.

Amazon currently holds a dominant position in the US and UK fashion market, generating nearly 10 billion US dollars from fashion sales in the United States alone in 2024, according to Statista. What's more, 28 million UK consumers, equal to 40 percent of the population, purchased fashion online in 2024, generating 31.6 billion pounds in UK revenue, with Amazon repeatedly cited as the most popular online only location for shopping for apparel.

Amazon urged to increase transparency & combat risks of forced labor in sellers' supply chains

"The shocking findings in our new report show that Amazon's monopoly is built on hidden exploitation," said Anna Bryher, Policy Lead for Labour Behind the Label, in a statement. "Third-party sellers are fundamental to Amazon's business model and its meteoric financial success."

"Yet forced labour products are just a few clicks away for the millions of Amazon shoppers buying fashion online. Behind the opulent display of Jeff Bezos' recent wedding lies a dark truth: this obscene wealth was amassed with little care for transparency, worker well-being, or the planet."

With the majority of fashion products sold on Amazon stemming from smaller brands with limited supply chain visibility or sourcing policies, campaigners at Labour Behind the Label believe that it is up to the online marketplace to take action and ensure that human rights are maintained within its seller value chains.

"A lack of transparency breeds dirty, low-wage production and hidden exploitation," added Bryher. "Amazon's business model must stop harbouring risk and start opening its supply chains to public scrutiny so that people and the planet are truly protected."

To mitigate forced labor risks, the organization urges Amazon to require its sellers to publicly disclose their supplier details and where their products are made.

In addition, Labour Behind the Label recommends that Amazon implement and check compliance with mandatory human rights standards across its marketplace, and commit to taking joint action when and where needed to offer compensation for workers when forced labour is uncovered.

In response to the investigation's findings, an Amazon spokesperson stated the following: “Providing safe, healthy and fair working conditions is a requirement of doing business with Amazon in every country where we operate. Selling partners who list products in our stores must comply with our Supply Chain Standards, even when they exceed the requirements of applicable law. We take these allegations incredibly seriously and are currently investigating these claims.”

The online marketplace added that all its third-party sellers are independent businesses, required to follow all applicable laws, regulations, and Amazon policies when listings items for sale, and that those who do violate its policies will face decisive action, "up to and including withholding funds, terminating accounts, and making law enforcement referrals."