Amazon Vendor Update: Amazon Cuts Ties with Thousands of Vendors

It's been a stressful week with mixed messages from Amazon, but we believe we've finally got the full story. 

Last week, Amazon abruptly removed thousands of vendors by terminating their purchase orders.

Although Amazon initially told vendors it was a technical glitch, they later said the move was permanent and encouraged vendors to move to Seller Central. 

Amazon provided the following statement about the removed vendors:

"We regularly review our selling partner relationships and may make changes when we see an opportunity to provide customers with improved selection, value and convenience."

Which vendors were affected?

There's no comprehensive list, but it appears they have $10 million or less in sales volume per year, no assigned vendor manager, and some specialize in "oversized goods" that cost more to ship.

Clearly, Amazon is seeking to control how companies sell on its platform. 

We believe this move signals the first step that Amazon is taking to merge Vendor Central (where Amazon buys and resells your products to their customers) into its Seller Central marketplace (where you're a third-party merchant selling directly to Amazon's customers). 

Is it time to transition to Seller Central? 

A lot of folks are speculating that this move is a first step to the ''One Vendor Program'' (as it's being referred to in the media).

Let's dive into it a little bit. Watch this quick video with our founder Chris to learn more:

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