Amazon says it has cancelled most orders placed on items accidentally sold for as little as 1c on Friday night.
The online retailer insists it will also 'reach out' to any third-party sellers affected by the computer glitch which caused the problem - some of whom say it could drive them out of business.
The company responsible for the issue has apologised.
Some firms which use RepricerExpress - a Northern Ireland based firm - say they risk going bankrupt because the problem has resulted in them losing so much money.
The software is designed to keep businesses competitive by automatically repricing items of stock so they are cheaper than others in the digital market.
The firm states on its website: "We are here to increase your sales on Amazon and Rakuten's Play.com and make your efforts as profitable as possible."
Fraction of normal price
For an hour on Friday, between 7pm and 8pm, a problem with RepricerExpress led to hundreds of items being sold on Amazon at a fraction of their normal price. At the same time, some customers said, Amazon charged its usual fees for every item sold.
One of the sellers, Judith Blackford of Kiddymania, said she could be forced out of business as result of the error.
She said: "I started using Repricer Express - a repricing tool as did a lot of other businesses a few months ago."
She claimed an error in the programme meant her stock on Amazon at around 1c per item - including delivery. She says she has lost about €25,000 overnight.
"Having asked Amazon to cancel the orders they are still sending them out and charging me horrendous fees," she added. "Surely someone has to be accountable for this. I will be bankrupt at this rate by the end of January."
Another retailer affected, Discount Discs, said: "This has happened on probably the busiest trading weekend of the year for many sellers."
As a result of the error, several buyers commented on Twitter at how pleased they were to have bought the items for so little.
An email to some customers from the CEO of RepricerExpress, Brendan Doherty, said the problems with the software caused incorrect pricing to be sent to Amazon.
A statement on the company's website from Mr Doherty said: "I am truly sorry for the distress this has caused our customers."
"We have received communication that Amazon will not penalise sellers for this error. We are continuing to work to identify how this problem occurred and to put measures in place to ensure that it does not happen again."
"Everyone here is devastated and disappointed that you have experienced this problem. We understand that you are angry and upset and we will endeavour to work to make good on this issue."
A spokesman for Amazon said: "We are aware that a number of Marketplace sellers listed incorrect prices for a short period of time as a result of the third party software they use to price their items on Amazon.co.uk.
"We responded quickly and were able to cancel the vast majority of orders placed on these affected items immediately and no costs or fees will be incurred by sellers for these cancelled orders.
"We are now reviewing the small number of orders that were processed and will be reaching out to any affected sellers directly."
Originally posted at 7.08am
