Even while inflation cools, 1P brands still say that Amazon is continuing to tighten its belt as the e-commerce giant continues to raise fees with longtime wholesalers and prioritize profitability.
Last year, Amazon’s first-party vendors told Modern Retail that the e-commerce giant had been tightening margins in contract negotiations for longtime sellers, citing inflation and supply chain disruptions. Sources say this trend shows no signs of abating. Sources said that Amazon has begun allegedly begun telling brands it will no longer prioritize smaller individually-packed items, and will instead support products that have higher average selling prices. Other vendors have posted on LinkedIn that they’ve received similar information from vendor managers in the European Union.
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