https://www.cnbc.com/2019/03/20/amazon-aggressively-suspending-ads-of-unprofitable-products-as-focus-on-the-bottom-line-grows.html
- In recent months, Amazon has been more aggressively enforcing its policy of suspending ads if the product being promoted doesn’t make money.
- It’s part of a series of recent moves by Amazon to help the company reach record profits.
- The change poses a challenge for Amazon, because its ad business is very lucrative and growing rapidly.
As Amazon steps up its effort to show Wall Street it can generate profits, the e-commerce giant is aggressively blocking money-losing products from advertising on its site.
In recent months, Amazon has been telling more vendors, or brand owners who sell their goods wholesale, that if Amazon can’t sell those products to consumers at a profit, it won’t let them pay to promote the items. For example, if a $5 water bottle costs Amazon that amount to store, pack and ship, the maker of the water bottle won’t be allowed to advertise it.
All this is for products Amazon is buying from vendors to sell directly to consumers. This seems to be another move in the direction of unloading to third party sellers.
