// Amazon is set to scrap wholesalers in favour of sourcing directly from brands
// The online giant told its vendors the approach will help control costs and keep prices low for shoppers
Amazon has told its European vendors it will focus on sourcing products directly from brands instead of wholesalers as of April.
According to an email seen by Retail Week, the retailer told its vendors it believes this approach will help control its cost base and “keep prices low for shoppers”.
The online giant assured that wholesalers will still be able to sell their products through the marketplace and that it will continue to work with them if they are the brand owner or have sole distribution rights.
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It said: “As part of a procurement policy implemented at a European level, Amazon has decided to focus on sourcing brands directly from brand owners.
“As a result, we hereby inform you that we will stop sourcing the brands included at the end of this email (ie: products where you are not the brand owner).”
Vendors who wish to keep on selling can create a ‘Seller Central account’ to become a third-party seller, Amazon said.
A spokesman told the publication: “As is common for all businesses, we regularly review our approach to product sourcing as we try to control our costs and keep prices low for customers.
“With this in mind, we’ve decided to focus on sourcing certain products for our European stores directly from brand owners.
“In order to help wholesalers and distributors prepare for this change, we will not implement this change until April.”
Earlier this week, Amazon chief executive Andy Jassy claimed the online giant was ready to “go big” on physical stores for its grocery arm despite it facing several setbacks in recent months.
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