Amazon to End Contracts with European Distributors - Modern Distribution Management

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Amazon to End Contracts with European Distributors

The decision to bypass wholesalers is the latest in a series of cost-cutting measures implemented by Amazon CEO Andy Jassy.
Amazon Warehouse Facility Exterior and Trademark Logo

Amazon announced earlier this month that it will cut ties with European distributors, instead opting to source goods directly from brands, according to reports. In order to “help wholesalers and distributors prepare for this change,” the program won’t take effect until April, an Amazon spokesperson said.

“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,” the unnamed spokesperson said. “With this in mind, we’ve decided to focus on sourcing certain products for our European stores directly from brand owners.”

Amazon will continue to source products from wholesalers and distributors if they are the brand owner or have sole distribution rights, the spokesperson said.

The decision to bypass wholesalers is the latest in a series of cost-cutting measures implemented by Amazon CEO Andy Jassy. Amazon announced shortly after the new year that it would lay off at least 18,000 employees and issued a hiring freeze. The company also announced earlier this week that its corporate staff will return to the office for three days a week starting in May.

“Wholesalers and distributors are still welcome to work with Amazon, and can choose to sell these products to customers directly on our store through Amazon Marketplace, as a third-party seller,” the spokesperson said.

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