The Core

Why We Are Here => Marketing => Topic started by: rcjordan on March 08, 2019, 01:25:10 AM

Title: Amazon has abruptly stopped buying products from many wholesalers
Post by: rcjordan on March 08, 2019, 01:25:10 AM

Quote

The company is encouraging vendors to instead sell directly to consumers on its marketplace. Amazon makes more money that way by offloading the cost of purchasing, storing and shipping products. Meanwhile, Amazon can charge suppliers for these services and take a commission on each transaction, which is much less risky than buying goods outright.

Amazon Purges Suppliers to Boost E-Commerce Profits - Bloomberg
https://www.bloomberg.com/news/articles/2019-03-07/amazon-purges-suppliers-in-push-to-boost-e-commerce-profits

Title: Re: Amazon has abruptly stopped buying products from many wholesalers
Post by: littleman on March 08, 2019, 01:48:54 AM

It makes sense for them.  With FBA, Amazon makes money whether a product sells or sits -- they take no risk and get a good share of the sale -- independent of seller's profit.

Title: Re: Amazon has abruptly stopped buying products from many wholesalers
Post by: rcjordan on March 08, 2019, 02:13:58 AM

The problem is that wholesalers don't know jack about retailing.

There might be an opportunity here for someone intimately familiar with FA, LM.

^tidbit:  Amazon will generate e-commerce revenue of $317 billion this year, representing 52.4 percent of all online sales in the U.S.

Title: Re: Amazon has abruptly stopped buying products from many wholesalers
Post by: littleman on March 08, 2019, 04:09:15 AM

Yeah, beyond my scope at the moment.  I'm just concentrate on building my own brand.