Amazon to unleash a long-feared purge of small suppliers


#21

This is exactly what I was thinking. Let Amazon go for the 1000’s of order a day items and let the 3p sellers have their handful a day orders.


#22

Good. Amazon buying direct from manufacturers hurts their resellers. Resellers like the big box stores to even more mom and pop stores. Can’t wait!

If you’re a manufacturer selling to Amazon directly then you can do a few things… 1. Sell on Amazon yourself. You will sell for a higher amount. 2. Seek resellers to sell your product for you. 3. Start working.


#23

I’ve always been afraid to put all my eggs in just the AMZ basket and because of that fear I have diversified my income into a second revenue stream using online marketing campaigns through social media. I hated living with that uncertainty surrounding my income. There are plenty more issues too such as black hat tactics, fake negative reviews, etc. as we are all aware… If anyone is interested in learning more … - glad to help

Moderator edit: SEAmod removed solicitation


#24

Vendors in this case means wholesalers and suppliers that Amazon deals with directly. They vend/sell product to Amazon. It could mean brands. It could also mean the authorized distributor for a brand.

It doesn’t mean that Amazon is going to do away with these brands or kick that brand off the site, it just means that Amazon is not going to spend time/money/other resources on brands that aren’t doing the volume or turns that larger brands are doing.

We all have to remember that what we consider a large order, is Amazon’s minuscule order. They’re going to leave those little vendors to us.


#25

I agree with you W12

even before this came out I have been reaching out to suppliers looking for new products to sell

just placed an order on Friday with a vendor but they made a mistake on the shipping price, now they want almost double so I told them to cancel the order. of course they came down on the price but still not where I was hoping to be.
So I’m up for dealing with any Vendors that are stuck with this new change, as long as it fits my category


#26

agree with this as well.
I might not be able to Buy like Amazon, but I would take a nice chunk


#27

A few observations here

  1. Amazon is trying to cut costs where they should not. They cannot create an algorithm to figure out what sells. There are some things in life that require a person to do and this is one of them.

  2. Amazon is punting one of its competitive advantages: learning and knowing what sells. That requires human beings, not programs.

Vendors can set up a third party account and do what sellers do. It is not that hard.

I am happy to give basic pointers, as I am sure many others will also.

This is a great idea in theory. The implementation is terrible.


#28

Not if the allow Vendor DF to continue.

It’s genius.


#29

Not if the allow Vendor DF to continue.

It’s genius.

Not sure what you mean by this


#30

IMO, more than likely this is due to the poor and quite frankly the worst BS ever on amazon; the Vendor Network. Which we did try and hated extremely. Thus we’ve been competing for individual sales since 2012 on amazon. Those who have not; and have been relying on amazon vendor network, better start learning to compete, swim or sink. I did see this coming a loooooooonge time ago though.


#31

You’re really overestimating the importance of humans here.

Pretty much everything Amazon does and has ever done is data driven. That’s their competitive advantage. They track every click and movement made on the site with massive amounts of A/B testing for every update, change and variation.


#32

Never happen.

3P sellers doing RA are the cash cow that will never leave. I will bet the “rules” will change and the vendors will get tossed under the bus and the 3P Retail and Online arbitrage will be full speed ahead.

If I am wrong you can send me some of that 80 Grit toilet paper that is laced with fiberglass particles for my office bathroom.


#33

:sweat_smile:


#34

Notice how @Skeeter never said “his” bathroom… but he said “my office bathroom”… which means everyone in his office is going to be feeling the pain, not him (or not just him).

Well-played Skeeter. Well played.


#35

Not when the brand owners all gate their brands…


#36

If they did that amazon would go dark.

The analysts at Piper Jaffray predict amazon stock will double by 2022.

Have you noticed the inverse relationship regarding available cash from 3P sales and amazon stock value.

3P sellers are not going any where, where in the world will you find any one that would actually add mega-size ACoS from PPC to their base fees. You and I and about a small handful of others know better, the balance does not.

Plus, look at the logistics build geared toward far east trade, way too much money in that to restrict sales in anyway.


#37

A wholesaler can’t sell at the price I can and I still make 60%+ margin… Not to mention, I have more room for margin adjustment and still make profit.

Amazon doesn’t need them


#38

IMO that is not likely to be the result. Not with Amazon dictating prices and wanting 14% MDF.

It is more likely trimming the overhead than looking for more Amazon revenue.

As for credibility, one has to wonder if this is what is really happening, or simply a story which seems true due the similar massacre of Whole Food’s vendors. Amazon appears to have reversed many of its changes made to Whole Foods.


#39

This


#41

You silly guy you