Back in March, Amazon was caught halting orders from thousands of suppliers for no apparent reason, only to later claim that the move was aimed at eliminating counterfeit products from Amazon's marketplace system. But we've since learned that Amazon is, in fact, intentionally trying to harm its smaller suppliers in order to focus on "major brands like Procter & Gamble, Sony and Lego."
Writing for Bloomberg, Spencer Soper explains that, as you're reading this, bulk orders for thousands of mom-and-pop shops who've been doing business on Amazon will soon be drying up – all so Amazon, which doesn't even pay taxes, can "cut costs" and rake in more profits.
According to Soper, these small-scale vendors will now have to "learn a new way of doing business on the web store" as Amazon goes after Walmart, Target, and Best Buy, which are among its biggest online competitors.
"Rather than selling in bulk directly to Amazon," Soper writes, these mom-and-pop vendors will now "need to win sales one shopper at a time." He goes on to add that the change represents "one of the biggest shifts in Amazon's e-commerce strategy since it opened the site to independent sellers almost 20 years ago."
Similar to how Google and YouTube are both giving preference to mainstream media outlets at the expense of independent news sources, thousands of which have been censored or removed in recent weeks, Amazon wants to cater to the big boys because of its greed and lust for absolute control over all goods and services.
Mike Adams, the Health Ranger, describes it as Big Tech "coalescing around a centralized offering while eliminating all diversity and independent competition," adding that "this is monopolistic at its core."
In the end, what these changes will mean for the retail market is that a small handful of mega-corporations will soon be in charge of pretty much everything that people consume, read, and buy, as well as what people search, view, and read online.
"This is the kind of change that will scare the living daylights out of brands selling on Amazon," warns James Thomson, organizer of the Prosper Show, an annual e-commerce conference that focuses primarily on Amazon.
"Amazon usually doesn't give a lot of lead time and brands will be left scrambling. If they make this change soon, brands will have until the end of the summer to get their acts together or their holiday quarter will be at risk."
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While the changes are, of course, great for Amazon, smaller vendors like One Vendor could go out of business because most, if not all, of their business was conducted through Amazon.
Despite a recent statement from an Amazon spokeswoman contending that "any speculation of a large scale reduction of vendors in incorrect," it's an undeniable fact that Amazon is trying to pay as few employees as possible, which means it's automating as many tasks as possible and consolidating its vendor lineup as aggressively as possible.
Another indicator of where Amazon is headed supplier-wise is the fact that the corporation did not renegotiate the annual terms with its smaller vendors this spring, which many see as a sign that big things are about to happen.
According to several people familiar with what's going on at Amazon, talks about scrapping small-scale vendors first began last fall. It was at that time that some Amazon employees attempted to convince their superiors to keep on these smaller suppliers.
The least Amazon can do is give its suppliers a proper heads-up before the upcoming holiday season. But even that seems unlikely, as it's not generally Amazon's custom to offer such courtesies to the folks with whom it does business.
As a result, small suppliers that have traditionally done business with Amazon should probably start making changes now if they hope to stay afloat.
"If this happens soon and people are not ready for it, they will not be ready during the holidays," says Anderson Salgado, a former Amazon vendor manager and CEO of Trisbell, a consulting firm that helps people and companies sell products on Amazon.
According to Salgado, it takes 120 days, or about four months, for an Amazon wholesale supplier to become a marketplace seller. This means that the time is now for these vendors to figure out what they need to do to weather the impending storm.
"The people who get ahead of the game are going to thrive," he adds.
Getting ahead of the game could mean abandoning Amazon entirely, however, as the company has made it abundantly clear that loyalty, honesty, and integrity are not among its core values. These small vendors would do better to find other retail platforms to do business with that, unlike Amazon, might actually treat them with decency and respect.
For related news about how Amazon's predatory and monopolistic tactics are eliminating jobs, be sure to check out Unemployment.fetch.news.
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