Amazon denies large-scale reduction of small suppliers

Amazon denies large-scale reduction of small suppliers

Amazon has denied a large-scale reduction of orders from small suppliers, saying selling partnerships are reviewed on an individual basis. 

The denial comes after a Bloomberg report headlined 'Amazon is poised to unleash a long-feared purge of small suppliers' said "a purge is coming that will upend the relationship between the world’s largest online retailer and many of its long-time vendors," in the US. 

Citing anonymous sources, Bloomberg reports: "In the next few months, bulk orders will dry up for thousands of mostly smaller suppliers, according to three people familiar with the plan. Amazon’s aim is to cut costs and focus wholesale purchasing on major brands like Procter & Gamble, Sony and Lego."

As well as independent merchants posting their own products on the site, Amazon purchases wholesale inventory from large and small suppliers for its warehouses, with products then sold directly to Amazon customers.

“Vendors selling less than $10 million in products each year on the site will no longer get wholesale orders from Amazon,” according to the Bloomberg report. 

Amid speculation of how a review would hit UK publishers and fears small indies would get burned, Amazon denied the story. 

In a statement, an Amazon spokesman said: "We informed Bloomberg prior to publication of their article that their sources and story are wrong. We review our selling partner relationships on an individual basis as part of our normal course of business and any speculation of a large scale reduction of vendors is incorrect. Like any business, we make changes when we see an opportunity to provide customers with improved selection, value and convenience, and we do this thoughtfully and considerately on a case-by-case basis."