On Monday, tens of thousands of Amazon vendors didn’t receive their weekly purchase order replenishments from the retailer, according to several Amazon-specialized agency executives working with brand clients with wholesale businesses on Amazon. The move appears to be permanent, according to some vendors, and signals one more way Amazon is seeking to control how companies sell on its platform.
In terminating purchase orders for smaller vendors, Amazon is essentially trimming the fat, pushing the businesses that aren’t big enough to command use of Amazon’s valuable hands-on resources to its self-serve third-party business. It’s also the third shift in strategy that Amazon has made in the past month that signals the start of One Vendor: Last week, vendor-fulfilled accounts on Amazon’s Vendor Central (which is essentially drop shipping on Amazon) were told they wouldn’t be part of the Vendor Central program any longer. And in the past month, Amazon has sent notice to larger vendors — name brands generating annual sales volume on Amazon over $10 million a year — that any business they were doing simultaneously in the third-party marketplace would be removed. Fossil, for instance, was blocked from running a third-party Amazon business on Seller Central alongside its first-party business on the Vendor Central side earlier this year, according to an agency executive.
Hybrid selling, a model that’s gaining traction for vendor brands that want to test direct selling, is apparently starting to be eliminated. Watch this video on how CPG.IO gives you control of your brands 3P marketplace.
Link to Original Article at Digiday