Amazon released an announcement! Will the production process also be restricted? !

For sellers and suppliers selling on Amazon, the rules and requirements provided by the platform are very important, especially in the past two years, as Amazon's policies have gradually tightened and the scrutiny of skirting the rules and illegal operations has become increasingly strict.

However, Amazon’s recent reminder to sellers in the background to pay attention to the code of conduct is a bit over the top, and even the production process of the product is under control.

The content mainly requires that all goods must be produced in accordance with the "Amazon Supply Chain Standards". Amazon will conduct further investigations on all products suspected of being unsafe or produced under exploitative conditions .

Although it seems to be an announcement only for suppliers, there are actually some intriguing signals behind it, which may also affect some of our third-party sellers. Don’t worry, we have to start with the motivation of Amazon’s announcement to remind everyone.

Motivation behind Amazon’s announcement

Amazon once held the top spot in the world in terms of market value at the beginning of the year, but has now been surpassed by Apple, Microsoft, and Google one by one, and its market value ranking has slipped to fourth place. Its market value has also fallen from one trillion US dollars at the beginning of the year to less than 900 billion US dollars now.

This year, Cyber ​​Monday, Black Friday and Prime Day both had good results, and sales hit record highs. Why is Amazon's market value falling? In fact, market value reflects whether investors are optimistic about the company's future. Amazon's market value decline is inseparable from an important reason - the very tense labor-capital relationship .

Looking at the companies with the highest market capitalization, Google, Microsoft, Apple, etc. are all known for their excellent employee benefits. There was even a time when a service was launched that allowed people to eat at Google using employee cards.

However, the relationship between Amazon and its employees is extremely tense, especially when approaching big promotional events such as Black Friday and Cyber ​​Monday. News about strikes has become commonplace for us sellers.

These public opinions have had a very obvious impact on Amazon's market value, and the purpose of Amazon's announcement is to resolve the current tense labor-management relations.

Although it is just a reminder to "pay attention to supplier standards" and no changes have taken place, Amazon, which is now at the center of the storm, will definitely have a very different attitude than before. An example is that after the media exposed the abandonment problem, Amazon quickly launched the "Donate" function.

After this "reminder", Amazon will certainly put pressure on suppliers regarding labor-management relations, requiring them to provide workers with a better working environment and treatment. At the same time, there will certainly be some reward and punishment mechanisms for suppliers.

Even suppliers are just the first step, we ordinary third-party sellers will be affected next.

Which third-party sellers will be affected?

That’s right, this is not just a problem that suppliers need to worry about. Sellers in the following situations are likely to be affected.

The authorization plan is a plan that was launched around the beginning of the year. To put it simply, some self-operated brands are handed over to third-party sellers for operation. Sellers can develop products and set operation strategies on their own. These "outsourced" self-operated brands have the same support as other self-operated brands, such as additional exposure on the homepage.

Since they are Amazon's own brands, they are the targets of "special attention" in the eyes of the media. Regardless of whether they are truly self-operated, these brands represent the face of Amazon. Like suppliers, these sellers should be careful that Amazon will strictly investigate violations in the coming period.

This is a relatively rare plan, and it is also a new plan that Amazon began to promote in the middle of this year.

Simply put, the SBA program is an official agency operation program . The brand, products, etc. can be decided by the seller, and the price needs to follow the MGP price provided by Amazon.

The biggest advantage of participating in the SBA program is that all products will be displayed as "sold by Amazon", and there will also be some platform-side self-operated traffic support. Therefore, many sellers are still eager to participate in this program. Like brand authorization, the SBA program that sells products under the name of Amazon is also likely to be the subject of investigation and restriction by Amazon.

Summarize

From the two examples I have given, it is not difficult to see that any plan that is related to Amazon's own sales may be restricted by supplier standards. After all, the media will not care which plan you are from. If you put "Amazon sales" on it, you will become a bargaining chip for the media to attack Amazon.

You can also use this rule to see if the program you are participating in will be the next target to be affected.

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