Amazon is preparing a cleanup plan! It will affect tens of thousands of people

Since the 525 store closure incident, Amazon’s credibility among sellers has been greatly reduced. Even though Amazon subsequently launched an activity in which it only charged platform fees once for 10 sites, few sellers were interested.

If Amazon can easily decide the life and death of a seller's account, who would spend energy and money to operate so many accounts? At this juncture, Amazon needs more reliable policies to restore its trust crisis.

But the end of May was a very sad month for Amazon. The 525 store closures had just eased a little when foreign media broke the news again.

Amazon is planning to clean up small and medium-sized suppliers!

The foreign media that broke the news was Bloomberg. In the original article, the foreign media stated that three people familiar with the matter revealed to Bloomberg that in the next few months, Amazon will gradually reduce and finally completely stop wholesale purchases from small suppliers.

The purpose of this move is very clear, which is to cut costs and focus on purchasing from well-known global brands such as Lego and Sony, thereby ensuring that Amazon can compete with competitors such as Walmart.

In fact, as early as the beginning of this year, Amazon had already made drastic cuts to supplier accounts one after another.

First, it launched a price protection policy in February, restricting the VC account’s authority to change prices, and then in March it shut down the VC account’s “Direct Fulfillment” function.

From gradually shutting down and restricting the functions of VC accounts to directly stopping purchasing goods from small suppliers, the rectification of VC is a gradual process.

Another sign is that Amazon will clean up supplier accounts. Every spring, Amazon negotiates and renews contracts with suppliers. However, many small suppliers have not received renewal notices this year.

Amazon spokesperson did not give a positive response to Bloomberg's report. However, it can be seen from various signs that it is a general trend for Amazon to drive all small suppliers to SC to sell directly to consumers, and it will come sooner or later.

This wave of screening will affect tens of thousands of small and medium-sized suppliers. According to information leaked by foreign media, any supplier with annual sales not exceeding 10 million US dollars will no longer receive wholesale orders from Amazon.

This threshold covers almost all small and medium-sized suppliers, but this standard has not been confirmed by Amazon.

However, Amazon is using various means to "force" small and medium-sized suppliers to transform into SC sellers, thereby reducing its own inventory pressure and earning commissions and storage fees from these suppliers, which can be said to kill two birds with one stone.

Amazon has always been in trouble for its principle of only focusing on its own profits. Amazon has absolute power over supplier accounts and third-party seller accounts. This allows Amazon to wantonly control the majority of sellers and suppliers for the sake of profits.

Whether it is the 525 store closure incident or the ban on small suppliers, they are all manifestations of Amazon's power. In addition to expecting third-party government agencies to formally supervise and restrict Amazon, we sellers can only follow Amazon's rules for the time being.

Regarding the store closure incident on May 25, many friends still feel unsatisfied. Recently, Teacher Alice and I have received many questions from sellers about this store closure.

Teacher Alice decided to have a live conversation with Peter, a local American seller, to discuss the questions sent by friends about the store closure. You can vote for the questions you care about in the poll below, and the two big sellers may talk about your questions~