Amazon to End Contracts with European Distributors - Modern Distribution Management

Log In

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
Author
Date

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.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.