Amazon’s hold over the market allows it to change policies in its favour, hurting vendors in the process.
The pandemic and subsequent consumer shift have given Tech Giant an unprecedented influence within the retail ecosystem. This growth for Amazon has come with a host of challenges for brands that work with the e-retail giant.
Apart from inconsistent traffic and longer approval timing for product listings, vendors are increasingly coping with significant fee increases and disputes around price increases. The additional costs and margin dilution has already forced some brands to refrain from selling their entire product range on the platform.
The company’s growth has also caused warehousing issues. Even with the new warehouse algorithm, brands are still struggling, generating out-of-stock events and lower-than-expected revenues. Exploring partnerships with a third-party logistics company or seller-fulfilled delivering systems can be a wise move.
[3 minute read]