Amazon leaves European distributors ‘out of the game’

With the aim of continuing to cut costs, now Amazon has decided eliminate European distributors out of the business equation, so those who sell directly to Amazon warehouses will no longer be able to do so, unless they have exclusive rights to distribute a brand.

According to a document to which he has had access CNBC, Amazon will cut its relationship with European distributors as of next April, when the period granted by the company for distributors to adapt to this new model ends. This is a major decision for distributors, who will no longer be able to sell products directly to Amazon. The only alternatives will be become third party merchantsthat is, acting as sellers selling on the platform but bearing all associated costs including logistics, or scontinue as distributors of a brand if they have exclusive rights.

“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”an Amazon spokesperson has assured in a statement as collected from CNBC. “With this in mind, we have decided to focus on sourcing certain products for our European stores directly from brand owners”added the spokesman.

Ultimately, this movement Amazon in Europe It happens, on the one hand, by directly controlling the brands that operate within the company and, on the other, by having a greater influence on prices and the selection of products.

job cuts

In early January, the company announced the dismissal of about 18,000 employees. Amazon it began laying off 10,000 employees in November, but ultimately the adjustment will be greater than expected. The layoffs have mostly affected the store divisions (Amazon Stores) and PXT, which is the company’s human resources area. The cuts amount to 6% of the workforce of approximately 300,000 people, and represent a quick turnaround for a club that recently doubled its base salary cap.

amazon too closed 2022 with red numbers. The American company has been riding losses and closing with profits since about 2015 thanks to its business in the cloud. However, last year it recorded losses of 2,722 million dollars.

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