Amazon sent an e-mail to its wholesale partners on Monday, in which it stated that the company will close the wholesale service Vendor Express.
Three years ago, Amazon launched a service called Vendor Express, which aims to make it easier for wholesalers to transfer inventory to e-commerce sites and avoid the Vendor Central portal that the company can only join if accepted.
This is a brief experiment.
Amazon said on Monday that it will close the service. It informs the wholesalers in the mail that the company will stop accepting orders from May 21st and will permanently shut down the service on January 1, 2019.
Amazon said: "We are always looking for ways to improve the Amazon platform's sales experience." After careful evaluation, we decided to withdraw Vendor Express services and refocus our business on other sales items. ”
Amazon confirmed the news to the media and stated that the suppliers participating in the project will switch to other ways to sell products on Amazon.
Vendor Express was launched in 2015 to facilitate small businesses to sell large quantities of products to Amazon. Unlike Vendor Central for big brands and big merchants, Vendor Express provides small businesses with a fast track to allow them to label their products with Amazon's “sales” label and then sell them. In contrast, big brands and big businesses need to go through a thorough review and get approval before joining the Vendor Central project.
Amazon did not explain why it was canceled. However, according to some Amazon sellers, the service had encountered fake and inferior products when it was first launched, and it probably did not attract the attention of high-quality sellers. Anonymous sellers said that while Vendor Express required merchants to provide samples and fill out registration forms before placing an order, this process is not sufficient to ensure that the product is genuine.
Joe Jaziukenas, chief executive of Marketplace Pulse at e-commerce research firm, said: "Maybe Amazon is aware that brand quality cannot be guaranteed, and the project's return is not good enough." Amazon wants these businesses to manage their own risks and sell products as third-party sellers. ”
Amazon has encouraged e-mail businesses to act as retailers themselves to sell their products on the Amazon market and use Amazon's logistics and transportation systems. In recent years, Amazon's market services have developed rapidly, and now more than half of the products on the site are sold through the market.
Sellers stated that there is no clear advantage between Vendor Express between the third-party market and the Vendor Central project that accepts invitations only.
Will Tjernlund, managing partner of Goat Consulting, a consulting firm that helps Amazon sellers, said that larger brands are already wholesalers, while smaller sellers prefer markets where they can Price yourself and contact customers directly. In addition, he said that the cost of reviewing unqualified sellers may be too high to be maintained.
Tjelllund said: "Amazon has provided too much support and time for this service, but almost no revenue. ”