Amazon stops ordering from many suppliers, pushing them to bear the risks instead

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Amazon stops ordering from many suppliers, pushing them to bear the risks instead
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Amazon is urging wholesale vendors to sell their products directly to consumers on Amazon's marketplace and pay it commissions.

Amazon.com Inc. abruptly stopped buying products over the last two weeks from many of its wholesale vendors, encouraging them to instead sell their products directly to consumers on Amazon’s marketplace.

“We regularly review our selling partner relationships and may make changes when we see an opportunity to provide customers with improved selection, value and convenience,” Amazon said in an emailed statement, declining to answer specific questions about the move. One vendor who has been selling products to Amazon for five years said he got a canned response when he inquired why his routine weekly purchase order never came through. The response gave him no clarity about his standing as a vendor, he said.

“If you’re heavily reliant on Amazon, which a lot of these vendors are, you’re in a lot of trouble,” said Dan Brownsher, chief executive of Channel Key, a Las Vegas e-commerce consulting business with more than 50 clients that sell more than $100 million of goods on Amazon annually. “If this goes on, it can put people out of business.”In recent years, Amazon has increasingly prioritized its marketplace.

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