Amazon skips wholesalers in Europe
Ecommerce giant Amazon has decided to skip wholesalers in Europe. Instead, it will focus on sourcing products from brands. By doing so, it wants to ensure low prices for consumers.
The online giant has sent an email to European vendors saying that it will focus on sourcing products from brand owners directly. According to the email, this new focus will be implemented in April.
‘We try to control costs and keep prices low for consumers.’
“As is common for all businesses, we regularly review our approach to product sourcing as we try to control our costs and keep prices low for consumers”, said a spokesperson of Amazon. As a result, the company has now decided to scrap wholesalers.
Brand owners can continue selling
Wholesalers who want to continue selling on the platform can create an account on Amazon’s Seller Central to become a partner seller. Additionally, Amazon has told wholesalers that it will continue working with them as long as they are brand owners or have sole distribution rights of a product.
The online marketplace is also taking other steps to control its costs. Amazon Germany has also announced that the minimum order value for free delivery will be increased from 29 to 39 euros for non-Prime customers. Earlier this year, the company announced that 3 warehouses in the UK will be closing, while the openings of new logistics warehouses in Spain are delayed until 2024.