Early on May 28th, Bloomberg reported that Amazon is resuming its efforts to remove thousands of vendors from Vendor Central. According to the article, which cites three anonymous Amazon insiders involved in the effort, the vendor purge will likely take place over the next few months, as Amazon Retail halts purchase orders for thousands of smaller brands.
This massive change in the ecommerce platform was foreshadowed by the March 4th “One Vendor” scare, when Amazon Retail halted purchase orders to tens of thousands of brands. If Vendors who sell less than $10 million annually on Amazon will no longer receive purchase orders from Amazon Retail, although Bloomberg reports that the exact requirements will vary by category.
The History Leading up to Amazon’s Vendor Purge
Rumors of a significant shift in Amazon’s selling platforms began in late 2018, when rumors of a “One Vendor” platform were reported by Recode. According to Bloomberg’s Amazon sources, “Amazon began discussing which vendors it would keep in the fall,” suggesting that the “One Vendor” rumor may have originated from these conversations.
Bloomberg’s sources also noted that Amazon didn’t renegotiate annual terms with many of its smallest vendors this spring.
How to Prepare for Amazon’s Vendor Purge
Amazon has not officially stated whether the vendor purge is coming, but with numerous indications in the last year, the shift seems ever more likely.
If you’re at risk of being cut off by Amazon Retail, you have two options left to you: partner with a third-party retailer or sell yourself. This article details the advantages and challenges of each Amazon business model.
If you want to learn more about a third-party relationship or how to sell yourself, reach out to Kaspien. We can partner with you as your wholesale retailer or help you sell yourself through our Amazon agency division.
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