![]() It’s tempting to believe that what’s strong today will remain that way but that isn’t retail reality. Amazon has to do everything it can to hold its shareholders, stock price, employees, vendors and customers in place. Now it is likely to bear down on profitability, redouble category expansion efforts and move into countries where it hasn’t been successful before. We’ve seen othe retailers act against their long-term interests to maximize short-term profits when times are tough.Īmazon is under pressure to perform and Prime Day 2022 is one example. Maybe but that’s not how we’ve seen retailers act in the past. When I talk to those vendors, they tell me Amazon needs them and won’t harm them or give them cause to sell more on Walmart or other marketplaces. ![]() Those vendors have been feeling increased pressure on margins, fees and expenses they pay to Amazon for years. ![]() Amazon-only sellers, including the consolidators who have bought up hundreds of smaller Amazon sellers, are highly vulnerable to what Amazon does now. Entire industries have grown up that sell only on Amazon. The vendors who are most vulnerable are those who depend on the retailer for a majority of sales and Amazon probably has more vendors (and sellers) dependent on it than any retailer in history. That’s when retailers figure out ways to extract more value from their vendors. We should get more of what they’re getting.” They say, “we’re struggling with growth and our vendors are prospering. In the past is that when retailers got big and growth slowed, they continued to see their vendors making a lot of money. According to Coresight, “Amazon’s grocery ambitions have helped shape the focus of Prime Day 2022.” And yet, being a top player is still elusive. In 2017, Amazon bought Whole Foods and then it created Amazon Fresh grocery.
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