Amazon Poised To Unleash Purge Of Small Suppliers, Sources Say
In the next few months, bulk orders will dry up for thousands of mostly smaller suppliers, according to three people familiar with the plan. Amazon’s aim is to cut costs and focus wholesale purchasing on major brands such as Procter & Gamble, Sony and Lego, the sources said. That will ensure the company has adequate supplies of must-have merchandise and help it compete with the likes of Walmart, Target and Best Buy.
The mom-and-pops that long have relied on Amazon for a steady stream of orders will have to learn a new way of doing business on the web store. Rather than selling in bulk directly to Amazon, they will need to win sales one shopper at a time. It’s one of the biggest shifts in Amazon’s e-commerce strategy since it opened the site to independent sellers almost 20 years ago. While the plan could be changed or canceled, it is moving forward, the sources said.
https://www.ttnews.com/articles/amazon-poised-unleash-purge-small-suppliers-sources-say
Change the words "Sony, Proctor & Gamble and Lego" to "Sonder, Stay Alfred and Lyric" and "Walmart and Target" to "Booking and Expedia".. and you could almost be talking about Airbnb, rather than Amazon.