Monday 24 July 2017

Amazon will pay full price to marketplace retailers to boost its inventory

Despite its reputed 300m item assortment, Amazon has some item gaps, either in category or geography. In which case, as a service to its US clients, according to Arstechnica, Amazon contacted thousands of third-party retailers re a new program in which Amazon would buy their inventory at full price. Amazon would then be able to sell those products on its website, allowing it to quickly fulfil more orders around the world.

The service is part of Fulfilment by Amazon (FBA) in which third-party merchants piggyback on their shipping efficiencies by paying an inventory and storage fee to Amazon.
  • This represents a significant step forward, in that Amazon are prepared to sacrifice profits to satisfy consumer need
  • And once the happy customer comes back…
  • Another hurdle for competing online retailers to add to 1-Click ordering, 24hr (or less) delivery, and returns as easy as ordering…
Time to anticipate the inevitable UK introduction?

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