Amazon will phase out 3rd party sellers over the next 5 years

[NXLM]

AMAZON WANTS TO ONE DAY BE THE SOLE SELLER OF EVERY ITEM ON ITS SITE IN 5 YEARS.
That is its goal. One problem: It cant possibly house every item in all of its warehouses without becoming over stocked. How does amazon create a data base knowing how many items to keep in stock at any time and also during seasonal months? It has amazon 3rd party sellers fill in the voids while AMAZON CREATES ITS SELLER DATA BASE.
Amazon has created an program/ algarythem that analyzes all of its orders and sales from 3rd party sellers and itself. It is figuring out how much of what of EVERYTHING to keep in stock at any given time.
Amazon is collecting EXO BYTES of info of all the items ALL of its customers want, when and what locations. Heaters for the east coast during January, pools for the west coast during Aug. Pants during September.

Once Amazon has a grasp of all this info, it will slowly phase out the 3rd party sellers who have listings. Amazon will have all these items on hand at vairous locations without overwhelming itself with warehouse space because it knows how much of each product will sell and when. Buyer habbits based on price etc. MASSIVE MASSIVE PROJECT which in 5 years will be complete enough for Amazon to have no need for 3rd party sellers in the NEW listings

Amazon is using us to create its data base. It is already phasing out multiple categories because it has all the data it needs and is now the only seller. SHOES and clothing is one example. ONLY AMAZON SELLS IN THESE DEPARTMENTS.

[jakobrockz]

Interesting theory..

[glacier922]

Sources? Where are you getting this or are you just speculating?

[Klemantina]

It's going to kill many small businesses but on the other hand I guess it will lower the prices for everyone so overall it's a good thing right?

[unkown5454]

Quad City Dj's - C'Mon 'N Ride It (The Train) - YouTube

Quad City Dj's - C'Mon 'N Ride It (The Train) - YouTube

[SM2015]

I am already noticing them taking over many many listings and selling it lowest, even products they did not have a couple of months ago.
Mabye that is why every few months they do these mass suspensions.
Maybe this is why they tell sellers a customer complained about a product not being legit,
when I only sold this particular item they mentioned to one person, who did return it still unopened and unused with a email saying the no longer have that product so simply don't need the refills they purchased from me. They were happy, left good feedback and never compalined, yet AM counts that against me.

Sounds interesting and It does seem some of it is already heading that direction.

Someone needs to create another selling platform like AZ that is not so greedy!

[jakobrockz]

Or its a company that wants to make as much money as they can

[TonyAlmeida]

Suck it hard while you still can

[barrycruan]

3rd party sellers are making up more and more of amazons sales each year. Only a few years ago Amazon had 70% of sales. Their cut is decreasing each year.

They will always look to sell,popular products from major brands but they have no way of selling everything and if anything in 5 years Amazon will be all 3rd party sellers rather than the other way around.

[jeffweico]

This is not going to happen. They earn a very nice commission on every 3rd party sale, in many cases more than they could by selling the item themselves. YES, they CAN get anything cheaper than you can. BUT they have other costs for warehousing and operations to consider. Small 3rd party sellers do not have that issue since we are our own labor.

Amazon can obviously decide to do whatever they want with their website. But I don't see them getting rid of third party sellers. As far as I know, while some categories ARE blocked, you CAN usually be approved to sell in them. Apparel, Jewelry and DVD's are blocked because of all the people trying to sell counterfeits. But if you have legitimate sources for these items, you can certainly apply to sell in those categories. When they blocked DVD's, two of my accounts were approved to sell them.

I just don't see this happening.

[rsot]

Great song unkown5454

[Taking The Micky]

I have the same view as Barry. In 5 years amazon will just become a massive selling portal selling virtually nothing other than digital product. Manufactures will hold stocks and orders will go direct to them rather than amazon holding the stocks. FBA product will fill there warehouses and amazon will collect 15% or more on all sales for hosting a website. In the UK play.com has gone this way. Amazon does not manufacture anything (apart from Kindle) so if companies like Samsung/Apple want to sell there goods through amazon they will need there own stores with amazon or 3rd sellers.

[SM2015]

It does make sense and of course they want to make more money,
I have gotten some emails lately from them asking for my suppliers for a cut and things
like that, so it does kind of make sense for part of it anyways.

Hopefully they won't totally cut us out, that would be hurting a lot of peoples income just as it does when they have these mass suspensions.

But I do see parts of that, that seem like it is partially coming to that.

What can we call the new selling platform! The amazon competition, I am in!

[josh]

this is worrying, with al of us making a living online, eBay is slowly dieing, and amazon apprently will not have 3rd party sellers, no one will buy form our webstores either because amazon will sell it cheaper...

Whats the solution?

[jakobrockz]

Originally Posted by josh

this is worrying, with al of us making a living online, eBay is slowly dieing, and amazon apprently will not have 3rd party sellers, no one will buy form our webstores either because amazon will sell it cheaper...

Whats the solution?

You shouldn't be worrying about either eBay or Amazon dying lol

[eBay King]

Originally Posted by NXLM

AMAZON WANTS TO ONE DAY BE THE SOLE SELLER OF EVERY ITEM ON ITS SITE IN 5 YEARS.
That is its goal. One problem: It cant possibly house every item in all of its warehouses without becoming over stocked. How does amazon create a data base knowing how many items to keep in stock at any time and also during seasonal months? It has amazon 3rd party sellers fill in the voids while AMAZON CREATES ITS SELLER DATA BASE.
Amazon has created an program/ algarythem that analyzes all of its orders and sales from 3rd party sellers and itself. It is figuring out how much of what of EVERYTHING to keep in stock at any given time.
Amazon is collecting EXO BYTES of info of all the items ALL of its customers want, when and what locations. Heaters for the east coast during January, pools for the west coast during Aug. Pants during September.

Once Amazon has a grasp of all this info, it will slowly phase out the 3rd party sellers who have listings. Amazon will have all these items on hand at vairous locations without overwhelming itself with warehouse space because it knows how much of each product will sell and when. Buyer habbits based on price etc. MASSIVE MASSIVE PROJECT which in 5 years will be complete enough for Amazon to have no need for 3rd party sellers in the NEW listings

Amazon is using us to create its data base. It is already phasing out multiple categories because it has all the data it needs and is now the only seller. SHOES and clothing is one example. ONLY AMAZON SELLS IN THESE DEPARTMENTS.

What is this crap?

Announcing this statement without any proof...

As others have said, WE are the backbone of Amz. We make up 40%+ of their unit sales.

Why Amazon benefits from more third-party sellers - Market Realist

[123]

Originally Posted by eBay King

What is this crap?

Announcing this statement without any proof...

As others have said, WE are the backbone of Amz. We make up 40%+ of their unit sales.

Why Amazon benefits from more third-party sellers - Market Realist

Agreed its very unlikely amazon ever does this, amazon costs are huge and they take a loss on a lot of their sales in order to provide the best customer service they can and to win over customers so that amazon gets their full loyalty.

The commission they get from 3rd party sales is some of the best pure profit they can make.

[Alcap1]

Originally Posted by josh

this is worrying, with al of us making a living online, eBay is slowly dieing, and amazon apprently will not have 3rd party sellers, no one will buy form our webstores either because amazon will sell it cheaper...

Whats the solution?

sites like amazon/ebay will always exist, even if what OP is saying is true, there will always be someone to take their place because there is such a huge demand for it.

[dan_ebay]

I don't think so, they make more taking their 15% cut than they would selling it themselves on a lot of things. Prices for the stuff I sell on there are terrible, majority I'd be selling for £25 and making £2-3 profit (amazon would make more than me)

[unkown5454]

Originally Posted by rsot

Great song unkown5454

i'm going to gather all the bogus posts on this forum and build one massive hype train. don't get left out!

[machine1]

It will never happen gives other sites momentum to to get 3rd party sellers which in then increases then revenue and eventually compete with amazon.

[glacier922]

Also, amazon would have to invest too much on market analysis and takes risk with their own investment capital, that's why they would shift the cost and work to us, makes it easier for them.