After Destroying Brick and Mortars, Amazon Reportedly Planning to Cut Ties With Thousands of Small Vendors – Gizmodo

After Destroying Brick and Mortars, Amazon Reportedly Planning to Cut Ties With Thousands of Small Vendors – Gizmodo

Illustration for article titled After Destroying Brick and Mortars, Amazon Reportedly Planning to Cut Ties With Thousands of Small Vendors

Photo: Justin Sullivan (Getty)

Amazon has long touted its relationships with the small businesses who sell on its platform as helping them “reach hundreds of millions of customers around the world.” But Bloomberg reported on Tuesday that the e-commerce giant is about to cease bulk ordering for “thousands of mostly smaller suppliers,” which could have a devastating effect for those mom-and-pop operations. Amazon, however, disputes the report.

“We informed Bloomberg prior to publication of their article that their sources and story are wrong,” and Amazon spokesperson told Gizmodo in a statement by email. “We review our selling partner relationships on an individual basis as part of our normal course of business and any speculation of a large scale reduction of vendors is incorrect. Like any business, we make changes when we see an opportunity to provide customers with improved selection, value and convenience, and we do this thoughtfully and considerately on a case-by-case basis.”

Because Amazon controls a huge chunk of market share, the company wields immense power over the sellers on its platform—everything from reportedly pushing brands to change their packaging to dictating which brands can and cannot advertise their products on its platform. Citing sources familiar with the matter, Bloomberg reported that smaller vendors that are currently turning around less than $10 million in sales will now no longer receive bulk orders from the company.

The report states that Amazon also hasn’t renewed contracts with some small businesses and hasn’t filled open positions that would otherwise be handling those vendor relationships. Instead, it will turn to bigger-name brands like Procter & Gamble to help it stay competitive and cut costs.

According to Amazon itself, half of all of the items sold on its site “come from the millions of small and medium-sized businesses that have chosen to grow their business on Amazon.” While Amazon disputes Bloomberg’s report, it is known for pulling the plug on products known as “CRaP,” internal slang for “Can’t Realize a Profit.” Bloomberg claims the apparently forthcoming move will affect thousands of businesses that must make the switch from Amazon wholesaler to independent marketplace vendors, which a former seller told Bloomberg can take up to 120 days and could make or break those businesses’ holiday sales.

If correct, it would certainly seem that Amazon is looking to cut back costs imposed by more than just a few individual vendors who aren’t selling as well as the company thinks they should be. As Bloomberg noted, it also comes at a time when Amazon must increasingly compete with big box stores trying to mimic its successful model with online sales.

If nothing else, this move would seem to reaffirm the incredibly precarious position that all businesses that sell on Amazon—but especially the smaller ones—face as the company works to boost its bloated bottom line and make Jeff Bezos, already the world’s richest man, ever richer.


  1. I just want to tell you that I’m newbie to blogs and actually loved this web blog. Very likely I’m going to bookmark your website . You definitely come with fantastic well written articles. Thanks a bunch for sharing your web-site.

  2. My spouse and I stumbled over here different web page and thought I might as well check things out. I like what I see so i am just following you. Look forward to looking over your web page yet again.

  3. Hello, you used to write magnificent, but the last few posts have been kinda boring… I miss your super writings. Past few posts are just a little bit out of track! come on!

  4. What i don’t understood is in reality how you’re now not really a lot more neatly-preferred than you might be now. You’re very intelligent. You realize therefore considerably in relation to this topic, produced me for my part believe it from so many numerous angles. Its like women and men aren’t involved until it¡¦s one thing to do with Woman gaga! Your individual stuffs great. Always handle it up!

  5. Good site! I really love how it is simple on my eyes and the data are well written. I am wondering how I could be notified whenever a new post has been made. I’ve subscribed to your RSS feed which must do the trick! Have a nice day!

  6. Sapid Agency is a Search Engine Optimization company in New York City that provides SEO Services. Their proprietary SEO strategies help struggling websites and aspiring business owners to rank their websites higher in multiple search engines like Google , Yahoo and Bing. They provide local and gmb map ranking for businesses in NYC and many other local areas. Find more at @ 145 E 57TH NEW YORK, NY 10022, USA, +1 971 341 5608 USA

  7. MetroClick specializes in building completely interactive products like Photo Booth for rental or sale, Touch Screen Kiosks, Large Touch Screen Displays , Monitors, Digital Signages and experiences. With our own hardware production facility and in-house software development teams, we are able to achieve the highest level of customization and versatility for Photo Booths, Touch Screen Kiosks, Touch Screen Monitors and Digital Signage. Visit MetroClick in NYC at or , 121 Varick St, New York, NY 10013, +1 646-843-0888

  8. Thank you, I’ve recently been searching for info about this subject for ages and yours is the best I have discovered so far. But, what about the conclusion? Are you sure about the source?

  9. Hey I am so delighted I found your site, I really found you by error, while I was looking on Digg for something else, Anyways I am here now and would just like to say thanks a lot for a remarkable post and a all round thrilling blog (I also love the theme/design), I don’t have time to go through it all at the minute but I have saved it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the great work.

  10. Simply desire to say your article is as surprising. The clarity on your post is simply great and i can assume you are an expert in this subject. Fine along with your permission let me to take hold of your RSS feed to keep up to date with coming near near post. Thanks a million and please continue the gratifying work.

  11. Youre so cool! I dont suppose Ive read anything like this before. So good to search out any person with some authentic ideas on this subject. realy thank you for beginning this up. this website is one thing that’s wanted on the internet, somebody with a little originality. useful job for bringing one thing new to the web!

  12. I merely have to tell you that I am new to putting up a blog and clearly adored your page. Likely I am inclined to save your blog post . You absolutely have wonderful article blog posts. Appreciate it for swapping with us your very own url webpage

  13. Together with almost everything that appears to be developing inside this specific subject material, a significant percentage of perspectives are relatively refreshing. Nevertheless, I am sorry, because I do not subscribe to your entire suggestion, all be it radical none the less. It looks to everybody that your commentary are actually not completely validated and in actuality you are generally yourself not even completely confident of your assertion. In any event I did appreciate reading through it.

  14. Do you mind if I quote a few of your posts as long as I provide credit and sources back to your website? My blog is in the exact same niche as yours and my visitors would truly benefit from some of the information you provide here. Please let me know if this okay with you. Thanks!

  15. Great items from you, man. I have be aware your stuff prior to and you’re simply too wonderful. I actually like what you have bought right here, really like what you are saying and the way in which wherein you are saying it. You’re making it enjoyable and you continue to care for to stay it wise. I can not wait to learn far more from you. This is actually a wonderful web site.

  16. Thanks for the auspicious writeup. It if truth be told was a entertainment account it. Look advanced to far added agreeable from you! By the way, how could we keep in touch?

  17. Hi folks here, just became mindful of your writings through Search engines like google, and discovered that it is genuinely good. I will take pleasure in if you decide to continue these.

  18. One more thing. It’s my opinion that there are quite a few travel insurance web sites of trustworthy companies than enable you to enter your vacation details and find you the rates. You can also purchase an international travel insurance policy on-line by using your own credit card. Everything you need to do is to enter all travel details and you can understand the plans side-by-side. Merely find the system that suits your finances and needs then use your credit card to buy the item. Travel insurance on the web is a good way to take a look for a respected company for international travel insurance. Thanks for revealing your ideas.


Please enter your comment!
Please enter your name here