Amazon Purges Suppliers in Push to Boost E-Commerce Profits | Newsmax.com
The company is encouraging vendors to instead sell directly to consumers on its marketplace.
Amazon makes more money that way by offloading the cost of purchasing, storing and shipping products. Meanwhile, Amazon can charge suppliers for these services and take a commission on each transaction, which is much less risky than buying goods outright.
The company is determined to boost profits at the core e-commerce business, even if that means disrupting relationships with longtime suppliers. Because many suppliers source products from manufacturers months in advance, they’ll have to quickly shift their sales tactics if the expected Amazon orders don’t come in.