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Amazon lobbying Manufacturers to sell directly to consumers. What do you think?
 

Trying to cut prices even further, Amazon is lobbying manufactures in China and elsewhere to sell directly to consumers using the FBA program. This is not a new phenomena on the part of Amazon, but it seems that the efforts in that direction are ramping up recently.



Most manufacturers are specialized in "manufacturing" stuff, they lack the expertise when it comes to marketing and approaching customers...etc



What do you think? Are we on the verge of an Amazonian future where most sales are done directly without any middle men? Or do you think this attempt to push brands to sell directly will fail?

Re: Amazon lobbying Manufacturers to sell directly to consumers. What do you think?
 

My source is the forums of seller central, I have seen sellers worrying about Amazon lobbying manufacturers and brands to ditch 3rd party sellers/distributors in order to sell directly to consumers. The main objective here is to cut prices by cutting the middle men.


I read an article today about Amazon trying to phase out its 1st party platform and planning for a future where all sales are done via the 3rd party platform because the latter seems to be more profitable for Amazon where they basically take their cut on every sale without having to buy and hold inventory themselves.

Re: Amazon lobbying Manufacturers to sell directly to consumers. What do you think?
 

as you mentioned above, amazon is made up of over 60% third party sellers now.

They make more money sometimes by just chargin their commision
I dont think they will sift all all 3rd party sellers

Re: Amazon lobbying Manufacturers to sell directly to consumers. What do you think?
 

I think that plan won't work even if Amazon throws its weight behind it because factories take care of manufacturing products, taking care of promoting and selling the stuff is a different game/hustle for them. Most of them don't want to jeopardize their networks of distributors and 3rd party sellers, yet they remain tempted by the higher margins of direct sales :deadhorse:

Re: Amazon lobbying Manufacturers to sell directly to consumers. What do you think?
 

The last article I read is that AMZN did a study and found its own house brands are the most profitable and plan to promote them more.

Re: Amazon lobbying Manufacturers to sell directly to consumers. What do you think?
 

Depends on the brand and the product,with some ,you need a dealer network to service the products,like tractors for farmers,when a part went bad,the local dealer will order new parts and have them delivered to the farmer during harvest.
Some brands need retail shop to explain how it works,and follow up on aftermarket warranty,repair,upgrade.(Leica cameras,Rolex watches etc)